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13 Best Biotech Penny Stocks To Buy Now

In this article, we will be taking a look at the 13 best biotech penny stocks to buy now. To skip our detailed analysis of these stocks, you can go directly to see the 5 Best Biotech Penny Stocks To Buy Now.

Biotechnology is a sector that has long been contributing to the improvement of our quality of life. Companies operating in this sector have been working to address global health concerns related to infectious and age-related diseases. As a result, many investors today see immense potential for profit and gain in the biotech sector since biotech companies offer new sources of return and diversification of risk when investing in this sector.

Major companies within the biotech sector today include AbbVie Inc. (NYSE:ABBV), Pfizer Inc. (NYSE:PFE), and Bristol-Myers Squibb Company (NYSE:BMY), among more. At the same time, smaller-scale companies like the ones covered in our list below also offer attractive investment opportunities provided they have the financial backing to go through with their ongoing operations. As a result of the growing popularity of the biotech sector on the market, the number of public companies in this sector has increased significantly over the past few years. According to an S&P Dow Jones Indices report from October 2019, in 2015, there were 442 public biotech companies compared to 316 companies in 2012.

The biotech sector also shows a high return potential, based on the historical performance of the S&P Biotechnology Select Industry Index. In 2019, this index outperformed the S&P Pharmaceutical Select Industry Index and the S&P 500 consistently, posting absolute total returns of 22% in that year. Over the three years preceding 2019, this index had annualized returns of 17.7%, versus the same of -0.9% for the S&P Pharmaceutical Select Industry Index and 14.2% for the S&P 500.

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Our Methodology

We have selected penny stocks in the biotech sector trading below $5. These stocks have high liquidity allowing them to continue funding their ongoing operations over the coming years, based on their cash and cash equivalent figures for the third quarter. We have ranked them based on the number of hedge funds holding stakes in them, from the lowest to the highest.

Best Biotech Penny Stocks To Buy Now

13. Histogen Inc. (NASDAQ:HSTO)

Number of Hedge Fund Holders: N/A

Share Price as of November 29: $1.06

Histogen Inc. (NASDAQ:HSTO) is a biotech company focusing on developing proprietary hypoxia-generated growth factor technology platforms and stem cell-free biologic products. The company is based in San Diego, California.

In the third quarter of 2022, Histogen Inc. (NASDAQ:HSTO) had an EPS of -$1.01, beating estimates by $0.48. This July, the company also entered into a securities purchase agreement with a single healthcare-focused institutional investor. The agreement was for the issuance of 1.77 million shares of common stock, Series A warrants to buy an additional 1.77 million, and Series B warrants to buy an aggregate of 1.77 million at a price of about $2.818 per share. Histogen Inc. (NASDAQ:HSTO) is expected to draw in gross proceeds of approximately $5 million from the agreement.

However, Histogen Inc. (NASDAQ:HSTO), unlike AbbVie Inc. (NYSE:ABBV), Pfizer Inc. (NYSE:PFE), and Bristol-Myers Squibb Company (NYSE:BMY), is a high-risk stock.

12. electroCore, Inc. (NASDAQ:ECOR)

Number of Hedge Fund Holders: 3

Share Price as of November 29: $0.35

electroCore, Inc. (NASDAQ:ECOR) is a commercial-stage medical device company working to develop and commercialize a range of non-invasive vagus nerve stimulation therapies. The company’s gammaCore product is a prescription-only therapy for the acute treatment of migraines and episodic cluster headaches in adults. The company is based in Rockaway, New Jersey.

electroCore, Inc.’s (NASDAQ:ECOR) revenue in the third quarter of 2022 was $2 million, representing a growth of 33.3% year-over-year. The company’s cash, cash equivalents, and restricted cash as of September 30 stood at $21.9 million. In the fourth quarter, electroCore, Inc. (NASDAQ:ECOR) expects net revenues between $2.2 million and $2.3 million, versus the consensus estimate of $1.91 million. The company also guided for net cash usage between $4 million and $4.5 million.

Renaissance Technologies was the largest stakeholder in electroCore, Inc. (NASDAQ:ECOR) in the third quarter, holding 259,660 shares worth $105,000. In total, three hedge funds were long the stock, with a total stake value of $138,000.

11. Vaccinex, Inc. (NASDAQ:VCNX)

Number of Hedge Fund Holders: 3

Share Price as of November 29: $0.49

Vaccinex, Inc. (NASDAQ:VCNX) is a healthcare and biotech company focusing on the treatment of cancer and neurodegenerative disease. The company is based in Rochester, New York.

This November, Vaccinex, Inc. (NASDAQ:VCNX) closed a private placement of 7.14 million shares priced at $0.529 each. The company was able to generate about $3.8 million through this direct stock offering, including $2.9 million worth of shares being bought by the company’s management. Vaccinex, Inc. (NASDAQ:VCNX) now intends to use the net proceeds from the offering to fund its ongoing development and clinical trials for its lead drug, pepinemab, used in the treatment of cancer and neurodegenerative disease. The company also reported in its third-quarter earnings report that its cash and cash equivalents and marketing securities for the quarter were $7.2 million.

Three hedge funds were long Vaccinex, Inc. (NASDAQ:VCNX) in the third quarter, and four hedge funds were long the stock in the previous quarter. Their total stake values were $1.1 million and $2.5 million, respectively.

10. Regulus Therapeutics Inc. (NASDAQ:RGLS)

Number of Hedge Fund Holders: 3

Share Price as of November 29: $1.70

Regulus Therapeutics Inc. (NASDAQ:RGLS) is a clinical-stage biopharmaceutical company working to discover and develop drugs targeting micro-RNAs to treat a variety of diseases in the US. The company is based in San Diego, California.

On November 7, Canaccord’s Whitney Ijem initiated coverage of Regulus Therapeutics Inc. (NASDAQ:RGLS) with a Buy rating and a $9 price target.

This September, Regulus Therapeutics Inc. (NASDAQ:RGLS) announced topline data from its Phase 1 Single-Ascending Dose Trial for kidney disease candidate RGLS8429. RGLS8429 is a drug designed to target Autosomal Dominant Polycystic Kidney Disease. The company’s data showed that the drug was well-tolerated with no serious side effects. Regulus Therapeutics Inc. (NASDAQ:RGLS) shares rose by about 15% in light of this trial’s success. The company also reported in November that its cash, cash equivalents, and marketable securities for the third quarter stood at $45.3 million.

Out of the three hedge funds long Regulus Therapeutics Inc. (NASDAQ:RGLS) in the third quarter, DAFNA Capital Management was the largest stakeholder in the company. The fund held 555,555 shares in the company, worth $944,000 out of the total stake value of $1.3 million.

9. Vascular Biogenics Ltd. (NASDAQ:VBLT)

Number of Hedge Fund Holders: 3

Share Price as of November 29: $0.15

Vascular Biogenics Ltd. (NASDAQ:VBLT) is another clinical-stage biopharmaceutical company on our list. It develops therapeutics for the treatment of cancer and immune-inflammatory diseases in Israel and the US.

This November, Vascular Biogenics Ltd. (NASDAQ:VBLT) reported that for the third quarter, its EPS of -$0.12 was in line with estimates, while its $0.5 million revenue was up 150% year-over-year and beat estimates by $0.3 million. The company’s cash, cash equivalents, short-term bank deposits, and restricted bank deposits stood at $27.7 million. This figure is expected to fund the company’s current operating expenses and capital expenditures for at least 12 months.

Our hedge fund data shows three funds long Vascular Biogenics Ltd. (NASDAQ:VBLT) in the third quarter and four funds long the stock in the previous quarter. Their total stake values were $84,000 and $7.2 million, respectively.

8. vTv Therapeutics Inc. (NASDAQ:VTVT)

Number of Hedge Fund Holders: 3

Share Price as of November 29: $0.84

vTv Therapeutics Inc. (NASDAQ:VTVT) develops orally administered treatments for diabetes. The biotech company is based in High Point, North Carolina.

In the third quarter, vTv Therapeutics Inc. (NASDAQ:VTVT) reported that its cash position as of this September was $15.3 million, compared to $13.4 million in December 2021. This July, the company also announced that it is raising $10 million via an equity investment by CinPax, a unit of CinRx Pharma. The stock surged by 18.7% in light of the news.

Samsara BioCapital was the largest stakeholder in vTv Therapeutics Inc. (NASDAQ:VTVT) in the third quarter, holding 1.6 million shares worth $1.6 million. In total, three funds were long the stock, with a total stake value of $1.7 million.

7. MediciNova, Inc. (NASDAQ:MNOV)

Number of Hedge Fund Holders: 4

Share Price as of November 29: $2.66

MediciNova, Inc. (NASDAQ:MNOV) develops novel and small molecule therapeutics to treatment serious diseases with unmet medical needs in the US. It is based in La Jolla, California.

MediciNova, Inc. (NASDAQ:MNOV) had an EPS of -$0.07 in the third quarter, beating estimates by $0.02. Over the past three months, the company’s stock has outperformed the S&P 500, rising by 3.15% while the S&P 500 declined by 2.31%.

MediciNova, Inc. (NASDAQ:MNOV) was found among the 13F holdings of four hedge funds in the third quarter, with a total stake value of $1.2 million. In comparison, five funds were long the stock in the previous quarter, with a total stake value of $1.5 million.

MediciNova, Inc. (NASDAQ:MNOV), like AbbVie Inc. (NYSE:ABBV), Pfizer Inc. (NYSE:PFE), and Bristol-Myers Squibb Company (NYSE:BMY), is an attractive biotech stock hedge funds are beginning to consider.

6. Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE)

Number of Hedge Fund Holders: 4

Share Price as of November 29: $0.42

Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE) is a biopharmaceutical company that develops immunomodulatory therapies to treat pain from osteoarthritis in the US. The company is based in Englewood, Colorado.

In the second quarter, Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE) reported an EPS of -$0.15, beating estimates by $0.15. This March, the company’s cash and cash equivalents stood at $28.8 million.

Our hedge fund data shows 4 funds long Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE) in the third quarter. Their total stake value was $204,000.

Click to continue reading and see the 5 Best Biotech Stocks To Buy Now.

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Disclosure: None. 13 Best Biotech Penny Stocks To Buy Now is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

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As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

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One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
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Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

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Should I put my money in Artificial Intelligence?

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He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…