In this article, we will be taking a look at the 15 Best Biotech Penny Stocks to Invest in Right Now.
Jared Holz, the healthcare strategist for Mizuho, spoke on CNBC’s “Closing Bell Overtime” in July on whether the biotech industry is ready for a breakthrough. Given that there are hundreds of publicly traded stocks that don’t amount to anything overall, he said that the biotech industry has been a “super tough sector” in any case. He went on to say that it is difficult to make an industrial decision because there are many advantages and disadvantages.
But after “indiscriminately trading horribly for so long,” Holz said he thinks the sector is trading “a little bit better” now that it has stopped declining daily.
He reasoned that it is time for a move higher because all the disadvantages, such as pricing pressures and competition in the quantity of assets in the publicly listed arena, are now fully recognized and absorbed. “It would definitely be a less negative move, even though it might not be a huge one,” Holz said.
With these trends in view, let’s look at the best biotech penny stocks to invest in right now.
Our Methodology
For our methodology, we first screened biotech stocks trading below $5 per share and showing positive year-to-date (YTD) returns. From this pool, we selected the top 15 stocks with the strongest YTD performance as of September 19. Finally, we ranked these stocks in ascending order based on their YTD returns.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the 15 best biotech penny stocks to invest in right now.
15. Hoth Therapeutics, Inc. (NASDAQ:HOTH)
Year-to-Date Return: 140.64%
Hoth Therapeutics, Inc. (NASDAQ:HOTH) is advancing next-generation therapies across dermatology, oncology, and neurology, with a robust pipeline that includes proprietary platforms like BioLexa for antimicrobials and HT-ALZ for neurodegenerative conditions. The company focuses on innovative solutions for unmet medical needs, including eczema, chronic wounds, mast cell cancers, and neuroinflammation. The stock stands fifteenth on our list among the best penny stocks.
In September 2025, Hoth Therapeutics, Inc. (NASDAQ:HOTH) announced key developments across its programs. HT-001, a topical therapy for skin toxicities caused by EGFR inhibitor cancer treatments, is expanding globally with a Clinical Trial Application submitted to the European Medicines Agency. European enrollment is expected to begin in early 2026, supplementing ongoing U.S. trials and addressing a significant unmet need.
Meanwhile, HT-KIT, targeting rare mast cell cancers, completed its Good Laboratory Practice (GLP) bioanalytical phase and is moving into formal toxicology studies, meeting crucial regulatory milestones. The business also launched a veteran obesity program, entering metabolic disorder research and strengthening its pipeline through strategic collaborations.
On the financial front, Hoth Therapeutics, Inc. (NASDAQ:HOTH) is taking a progressive approach by expanding its treasury reserve to include up to $1 million in Bitcoin, Ethereum, and Solana, signaling a focus on asset diversification and innovative capital management.
14. Tiziana Life Sciences Ltd (NASDAQ:TLSA)
Year-to-Date Return: 160.0%
Tiziana Life Sciences Ltd (NASDAQ:TLSA) is a clinical-stage biotech company focused on next-generation immunomodulation therapies for neuroinflammatory and neurodegenerative diseases, including multiple sclerosis, Alzheimer’s, and multiple system atrophy. Its lead candidate, intranasal foralumab, is a fully human anti-CD3 monoclonal antibody designed to stimulate regulatory T cells and rebalance immune function.
In September 2025, Tiziana Life Sciences Ltd (NASDAQ:TLSA) drew attention with significant insider activity. CEO Ivor Elrifi purchased 193,848 shares at $1.65 each, while Executive Chairman Gabriele Cerrone added 25,000 shares, raising his stake to 36.28%. These moves underscore strong management confidence in the corporation’s pipeline and long-term prospects.
Tiziana Life Sciences Ltd (NASDAQ:TLSA) also secured a U.S. Department of Defense grant on September 15, 2025, to accelerate intranasal foralumab development for spinal cord injury, expanding its immunomodulatory focus beyond central nervous system disorders. Clinically, the business reached a milestone with the dosing of the first patient in a Phase 2a trial for multiple system atrophy, following FDA approval of a Phase 2 IND application in August 2025.
13. Invivyd, Inc. (NASDAQ:IVVD)
Year-to-Date Return: 175.40%
Invivyd, Inc. (NASDAQ:IVVD) is a commercial-stage biopharmaceutical company focused on developing antibody-based therapies for serious viral infections, including COVID-19 and influenza. Its INVYMAB platform combines viral surveillance, predictive modeling, and advanced antibody engineering to deliver next-generation monoclonal antibody (mAb) solutions.
Recently, Invivyd, Inc. (NASDAQ:IVVD) announced a strategic agreement with the FDA to use a single Phase 2/3 trial as the pivotal study supporting full approval of its lead COVID-19 mAb candidate, VYD2311. This streamlined Biologics License Application (BLA) pathway positions VYD2311 as a front-runner in adaptable COVID-19 therapies, capable of addressing both prevention and emerging variants.
The firm also strengthened its financial position with a $57.5 million public offering, issuing over 89 million shares. Proceeds will fund the continued development of VYD2311 and the expansion of its infectious disease pipeline, including influenza and other viral threats. Investor confidence surged, driving the stock up more than 90%, making it one of the best penny stocks to watch in the biotech sector.
Further validating its pipeline, Invivyd, Inc. (NASDAQ:IVVD)’s VYD2311 was highlighted in the SPEAR Study Group’s recommended Long COVID antibody study design at the RECOVER-TLC Workshop, reflecting growing recognition of its potential beyond prevention.
