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Best Biotech Penny Stocks

New possibilities pop up in biotech every day, especially when you have microcompanies competing to be the next media darling. Here we’ll focus on companies that have established themselves somewhat in the penny stock space. Don’t worry — there is still plenty of upside in all of these picks (and plenty of risks, too).

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Catalyst Pharmaceuticals (NASDAQ: CPRX)

Catalyst is a biopharmaceutical company focused on treating rare neuromuscular and neurological diseases. Catalyst launched amifampridine, the only evidence-based, FDA-approved treatment for adults with Lambert-Eaton myasthenic syndrome (LEMS). It is the 1st FDA-approved product for LEMS in over 35 years.

The biotech stock has a market cap of $340 million and an EPS of $0.39 and an average daily trade volume of 881,000 shares. Catalyst generated revenue of $102 million in 2019.

3.49 -0.04 (-1.13%)
Volume 1.01M Market Cap 361.73M
3.48 - 3.58
2.55 - 5.28
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Algernon Pharmaceuticals (OTC: AGNPF)

Algernon Pharmaceuticals is based in Canada and focuses on treatments for inflammatory bowel disease, chronic kidney disease and nonalcoholic steatohepatitis. It is currently a clinical-stage development business, so you’re getting in very early. The good news is that Algernon was able to attract media attention for its drug Ifenprodil without seeking it out at first. Media quickly picked up on the fact that Ifenprodil could be a potential treatment for COVID-19, however.

For most people, Algernon is still under the radar. It has also shown serious potential for treatments outside of COVID-19, which is great for the company’s health after the pandemic passes.

0.18 0.0033 (1.81%)
Volume 31.12K Market Cap 25.59M
0.18 - 0.1891
0.133 - 0.4867
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American Shared Hospital Services Common Stock (AMEX: AMS)

American Shared Hospital Services is a healthcare company with a 30-year track record of leasing state-of-the-art medical equipment to hospitals and medical centers. Its products include Gamma Knife, intensity modulated radiation therapy and proton beam radiation therapy.

The biotech stock has a market cap of $10 million. It trades more than 36,000 shares per day. American Shared Hospital Services generated revenue of $20 million in 2019.

2.32 -0.005 (-0.22%)
Volume 46.89K Market Cap 13.37M
2.3 - 2.38
1.16 - 3.58
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Biggest Biotech Penny Stock Movers of the Day

Biotech penny stocks have consistently been dominating the volatility charts since the start of COVID-19. Everyone is looking for the next big thing and there is a lot of trial and error occurring. Take a look at the biggest biotech penny movers of the day to see where the money is going.

The data provided below is intended for educational purposes only, we have included the session dates for your reference.

Premarket Biotech Penny Stocks
Symbol Last Price Change % Change Trade
OBSV 4.1 1.58 62.69% Trade
DBVT 5.62 1.88 50.26% Trade
ACER 3.77 0.91 31.81% Trade
NVIV 1.09 0.216 24.75% Trade
NOVN 1.24 0.24 24% Trade
AKTX 2.99 0.45 17.71% Trade
ONTX 0.8401 0.124 17.36% Trade
APM 3.2891 0.439 15.4% Trade
SEEL 1.6 0.16 11.11% Trade
KTRA 1.51 0.12 8.63% Trade
Symbol Last Price Change % Change Trade
LXRX 6.8816 -1.168 -14.52% Trade
PTE 1.06 -0.15 -12.4% Trade
TTNP 3.16 -0.34 -9.72% Trade
ATHE 1.605 -0.155 -8.81% Trade
CALA 3.34 -0.32 -8.75% Trade
GNCA 2.72 -0.23 -7.8% Trade
AIKI 1.09 -0.09 -7.63% Trade
EARS 2.61 -0.21 -7.45% Trade
VCNX 2.37 -0.19 -7.43% Trade
ANCN 2.1701 -0.17 -7.27% Trade
Market Biotech Penny Stocks
Symbol Last Price Change % Change Trade
DBVT 5.35 1.61 43.04% Trade
OBSV 3.58 1.06 42.06% Trade
NOVN 1.15 0.15 14.99% Trade
TYME 2.31 0.15 6.94% Trade
VBIV 3.41 0.19 5.9% Trade
CRVS 4.35 0.22 5.32% Trade
KDMN 4.98 0.25 5.28% Trade
OTLK 1.29 0.06 4.87% Trade
ATOS 1.31 0.06 4.8% Trade
APM 2.97 0.12 4.21% Trade
Symbol Last Price Change % Change Trade
LXRX 7.51 -0.54 -6.71% Trade
ATHE 1.68 -0.08 -4.55% Trade
SELB 3.55 -0.14 -3.8% Trade
TNXP 0.9205 -0.036 -3.76% Trade
MTP 2.2 -0.08 -3.51% Trade
PSTV 2.29 -0.08 -3.38% Trade
ALNA 1.5 -0.05 -3.23% Trade
CGIX 3.07 -0.09 -2.85% Trade
SNSS 2.74 -0.08 -2.84% Trade
ASLN 1.85 -0.05 -2.64% Trade
After Hours Biotech Penny Stocks
Symbol Last Price Change % Change Trade
GNCA 2.96 0.25 9.22% Trade
OCGN 2.38 0.16 7.2% Trade
GLMD 3.82 0.23 6.4% Trade
PTE 1.14 0.06 5.55% Trade
ETTX 2.78 0.14 5.3% Trade
CLSN 0.9098 0.04 4.57% Trade
ACER 3.98 0.13 3.37% Trade
HSTO 1.05 0.03 2.94% Trade
OVID 2.54 0.07 2.83% Trade
GNPX 3.85 0.1 2.66% Trade
Symbol Last Price Change % Change Trade
ONTX 0.77 -0.061 -7.37% Trade
NVIV 1.03 -0.08 -7.21% Trade
AKTX 2.97 -0.22 -6.9% Trade
NOVN 1.2 -0.07 -5.52% Trade
MTP 2.15 -0.11 -4.87% Trade
TENX 1.71 -0.07 -3.94% Trade
SYBX 3.4 -0.12 -3.41% Trade
DBVT 5.47 -0.19 -3.36% Trade
KTRA 1.45 -0.05 -3.34% Trade
OBSV 3.95 -0.12 -2.95% Trade

The most important innovation of the 1990s was the internet — today, it would be a vaccine for COVID-19. If these times have anything to say about it, the next Microsoft is coming from the biotech sector. Investors are moving in looking for profits, even putting companies without products on the map.

Companies like Novavax (NASDAQ: NVAX), Co-Diagnostics (NASDAQ: CODX) and Inovio (NASDAQ: INO) have capitalized on media attention surrounding their clinical trials and PR statements about a coronavirus vaccine. Does all of the new research and development (R&D) money mean new investment opportunities, or are we in the middle of a vaccine bubble?

Now that you have a real-time update, let’s give some context to the industry that should help to inform your investment process.

Overview: Biotech Penny Stocks

Modern biotechnology began in 1973 when scientists used recombination to genetically engineer an antibiotic-resistant strain of Escherichia coli bacteria. This began a revolution in molecule production that culminated in the founding of Genentech, the first publicly-owned biotech company, in 1976. Like many biotech startups today, Genentech started as a research initiative without any marketable products. However, it was able to produce a human-based form of insulin that dramatically increased the effectiveness of the drug in treatments.

The founders of Genentech started with an investment of $1,729. In 1980, they went public, raising $35 million. In 2009, Roche bought Genentech for $46.3 billion.

Investors have seriously recognized biotechnology as a distinct market sector since 1993. The Biotechnology Innovation Organization (BIO) was formed that year and now stands as the largest biotech trade organization in the world. BIO has spent millions lobbying the U.S. for small business inclusivity and intellectual property rights. Many of the issues they address directly affect small-cap and penny stocks, allowing more room for startups to perform speculative R&D and retain the fruits of their study.

The history of biotech is based around building something from nothing and giving the little guy a chance to change the world. This is the perfect space for speculative investors who want to hit stock trading home runs.

Penny stocks are notoriously volatile, and so is the biotech industry. Put the two together and you have a recipe for headlines. But if you’re looking for an industry of possibilities, this is the one to be in.

Best Online Brokers for Biotech Penny Stock

You will need a trading platform with lightning-fast execution, real-time news feeds and other features to compete in the biotech penny stock market. Compare the feature sets of the online brokers below to get an idea of the best choice for you.

Best For
Intermediate Traders and Investors
Overall Rating
Get started securely through Webull’s website
Best For
Intermediate Traders and Investors
N/A
1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.

Webull is widely considered one of the best Robinhood alternatives.

Best For
  • Active traders
  • Intermediate traders
  • Advanced traders
Pros
  • Commission-free trading in over 5,000 different stocks and ETFs
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
  • Intuitive trading platform with technical and fundamental analysis tools
Cons
  • Does not support trading in mutual funds, bonds or OTC stocks
Best For
Futures Trading
Overall Rating
Get started securely through TradeStation’s website
Best For
Futures Trading
N/A
1 Minute Review

TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.

Best For
  • Advanced traders
  • Options and futures traders
  • Active stock traders
Pros
  • Comprehensive trading platform and professional-grade tools
  • Wide range of tradable securities
  • Fully-operational mobile app
Cons
  • Confusing pricing structure to leave new traders with a weak understanding of what they pay
  • Cluttered layout to make navigating TradeStation’s platform more difficult than it should be
Best For
Options Trading
Overall Rating
Get started securely through TD Ameritrade’s website
Best For
Options Trading
N/A
1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

Best For
  • Novice investors
  • Retirement savers
  • Day traders
Pros
  • World-class trading platforms
  • Detailed research reports and Education Center
  • Assets ranging from stocks and ETFs to derivatives like futures and options
Cons
  • Thinkorswim can be overwhelming to inexperienced traders
  • Derivatives trading more costly than some competitors
  • Expensive margin rates
Best For
Advanced traders
Overall Rating
Get started securely through Moomoo’s website
Best For
Advanced traders
N/A
1 Minute Review

Moomoo is a commission-free mobile trading app available on Apple, Google and Windows devices. A subsidiary of Futu Holdings Ltd., it’s backed by venture capital affiliates of Matrix, Sequoia, and Tencent (NASDAQ: FUTU). Securities offered by Futu Inc., regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Moomoo is another great alternative for Robinhood. This is an outstanding trading platform if you want to dive deep into smart trading. It offers impressive trading tools and opportunities for both new and advanced traders, including advanced charting, pre and post-market trading, international trading, research and analysis tools, and most popular of all, free Level 2 quotes.

Get started right away by downloading Moomoo to your phone, tablet or another mobile device.

Best For
  • Cost-conscious traders
  • Novice traders
  • Active/Advanced traders
Pros
  • Free Level 2 market data for all users who open an account
  • Commission-free trading in over 5,000 different stocks and ETFs
  • Over 8,000 different stocks that can be sold short
  • $0 contract fee for trading options, no commission either
  • Strong market data and analysis tools with over 50 technical indicators
  • Access trading and quotes in pre-market (4 a.m. to 9:30 a.m. ET) and post-market hours (4 p.m. to 8 p.m. ET)
  • No minimum deposit to open an account.
  • Active trading community with more than 100,000 app users
Cons
  • No phone or chat support

Finding the Next Microsoft

As you wade through biotech penny stocks, you are sure to find rampant speculation over COVID-19 treatments. Companies know they can quickly boost stock prices with little more than a press release. If you’re fast on the draw and your account is big enough, you might be able to scalp a few day trading profits from these gimmicks.

If you want to find the next Microsoft, you have to do a bit more digging. Not every company is a winner — in fact, the vast majority of them are not. But our understanding of biology and technology is moving forward in leaps and bounds. It’s definitely an exciting time for an industry that combines these 2 things. Look past the coronavirus headlines into a company’s management team and research process for the best results.

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