Best Biotech Penny Stocks

Looking for the best biotech penny stocks? 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. This is why certain companies are research or developmental-stage firms while others are clinical-stage.

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. Plus, pharmaceutical firms like Moderna (NASDAQ: MRNA), Pfizer (NYSE: PFE) and Johnson & Johnson (NYSE: JNJ) have capitalized on their COVID-19 vaccines and related technology. While these are not penny stocks, they show the massive potential in the biotech industry, and larger companies often inspire smaller firms to grow quickly, IPO and raise more funding. 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. Remember, though, these stocks come with risks that you cannot ignore. Yes, one stock may seem like a sure thing, but penny stocks are closer to 0 than they are to the heights of their large-cap brethren. Even so, the breadth of the technology they can produce could turn one of these companies into a large-cap captain of industry for decades to come. Only time will tell, and you must research carefully before spending your hard-earned money.

Quick Look at the Best Biotech Penny Stocks:

• Evelo Biosciences, Inc.
• Vivo Therapeutics, Inc.
• Molecular Templates
• Vaccinex, Inc.
• Sonnet BioTherapeutics Holdings, Inc.
• Minerva Surgical, Inc.
• Precigen, Inc.

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. Even so, the company must prove that growth potential is there if it can be a solid long-term investment. If you can find a solid long-term investment, you can hold that asset. If not, you can flip the stock at any time for a profit.

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 on 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. However, not every stock will turn into a home run. You must be patient and ready to back out of certain positions as needed.

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. At the same time, these companies can cycle in and out of relevancy rather easily. The COVID-19 pandemic allowed companies like Moderna to come to the forefront, but another health emergency or issue could allow a different firm to rise out of nowhere. You must always be on the lookout.

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. This means that the best brokerage for you may not be the best brokerage for someone else, and you should do your best to match the broker with your trading plan.

Finding the Next Amazon

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 Amazon, 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. Also, remember that not all companies have the same trajectory. Some companies grow faster than others, and patience may be required.

As you look past the COVID-19 headlines, remember that companies can move outside their COVID-19 vaccines or treatments to grow in other areas. In fact, some smaller companies like had quite a lot of potential before the COVID-19 pandemic, and they can capitalize on that potential as COVID subsides. Remember, though, the COVID-19 pandemic could continue to impact different industries and businesses, forcing their stock values to fluctuate.

Frequently Asked Questions

Continue reading: BEST PHARMACEUTICAL STOCKS