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.
12. Entero Therapeutics, Inc. (NASDAQ:ENTO)
Year-to-Date Return: 176.53%
Entero Therapeutics, Inc. (NASDAQ:ENTO) is a clinical-stage biopharmaceutical company developing targeted, non-systemic therapies for gastrointestinal disorders, including celiac disease, gastroparesis, and pancreatic insufficiency. The company has recently drawn attention as a biotech penny stock due to key developments in September 2025.
A major change in leadership marked the month, with interim CEO Richard Joel Paolone replaced by Jason D. Sawyer, effective September 9. Sawyer brings significant venture investment experience, signaling a potential strategic focus on new funding and partnership opportunities to support the company’s growth and pipeline advancement.
Entero Therapeutics, Inc. (NASDAQ:ENTO) also navigated the effects of its August 2025 1-for-3 reverse stock split, implemented to maintain Nasdaq compliance and protect its public listing. While necessary, the split contributed to market volatility and investor caution amid ongoing financial and governance scrutiny.
On the financing front, Entero Therapeutics, Inc. (NASDAQ:ENTO) completed a $3 million private placement through warrant offerings, enhancing liquidity for working capital and ongoing research. Key pipeline initiatives include Adrulipase, a recombinant lipase therapy for cystic fibrosis and chronic pancreatitis, as well as investigational treatments for celiac disease.
11. Relmada Therapeutics, Inc. (NASDAQ:RLMD)
Year-to-Date Return: 194.23%
Relmada Therapeutics, Inc. (NASDAQ:RLMD) is a clinical-stage biotech company developing innovative therapies for oncology and central nervous system (CNS) disorders. In 2025, the company will expand its pipeline with two Phase 2 candidates: NDV-01 for non-muscle invasive bladder cancer (NMIBC) and sepranolone for compulsivity disorders such as Prader-Willi Syndrome (PWS).
In September 2025, Relmada Therapeutics, Inc. (NASDAQ:RLMD) reported promising Phase 2 results for NDV-01, a sustained-release formulation of gemcitabine and docetaxel, showing a 91% complete response rate. The firm is preparing to launch a Phase 3 registrational trial in early 2026. Sepranolone is also progressing toward a Phase 2 trial for PWS, with regulatory and manufacturing steps underway. Additionally, the business regained compliance with Nasdaq’s minimum bid price requirement, ensuring continued listing and signaling market stability, placing it among the best penny stocks to watch in biotech.
On the financial side, Relmada Therapeutics, Inc. (NASDAQ:RLMD) posted a $9.9 million net loss in Q2 2025 and held approximately $20.6 million in cash, reflecting a cautious cash position as it ramps up for larger clinical trials.
10. NovaBay Pharmaceuticals, Inc. (NYSE:NBY)
Year-to-Date Return: 203.33%
NovaBay Pharmaceuticals, Inc. (NYSE:NBY) is a biopharmaceutical company specializing in anti-infective therapies for inflammation and infection-related conditions. Its flagship product, Avenova, is an antimicrobial lid and lash cleanser clinically proven to relieve chronic eye conditions by removing microorganisms and debris. The company also develops hypochlorous acid-based wound care solutions, offering safe and effective treatments for skin and wound infections.
In September 2025, NovaBay Pharmaceuticals, Inc. (NYSE:NBY) announced a one-time special cash dividend of $0.80 per share, payable on September 29 to shareholders of record as of September 15. The dividend represents more than 25% of the current stock price, prompting a market notification from the NYSE regarding potential price impact. This move underscores the corporation’s strong cash position and commitment to returning value to shareholders, highlighting financial stability amid ongoing operations.
Although there were no new product approvals or launches this month, NovaBay Pharmaceuticals, Inc. (NYSE:NBY) continues to focus on its established antimicrobial and eye care portfolio, which maintains solid market performance. The special dividend, alongside the upcoming 2025 annual meeting, reinforces investor confidence and the business’s position as an attractive biotech penny stock. This financial signal suggests potential for continued profitability and strong cash flow in the future.
9. Lineage Cell Therapeutics, Inc. (NYSE:LCTX)
Year-to-Date Return: 206.0%
Lineage Cell Therapeutics, Inc. (NYSE:LCTX) is a clinical-stage biotech company developing allogeneic “off-the-shelf” cell therapies for neurological and ophthalmic disorders. Its proprietary platform engineers human cells to replace or support dysfunctional cells caused by degenerative diseases, injuries, or aging.
In August 2025, the business reported positive 36-month Phase 1/2a results for RG6501 (OpRegen), a retinal pigment epithelial therapy for geographic atrophy, a form of age-related macular degeneration. Patients showed sustained vision improvements of +6.2 ETDRS letters, suggesting potential disease stabilization from a single administration. The data, presented at Clinical Trials at the Summit 2025, reinforces OpRegen’s promise as a therapy licensed to Genentech and Roche for further development, positioning Lineage among the best penny stocks in the biotech space.
Lineage Cell Therapeutics, Inc. (NYSE:LCTX) also treated its first chronic spinal cord injury patient in a new OPC1 trial, marking a milestone in expanding clinical applications beyond ophthalmology. Additionally, Lineage partnered with William Demant Invest A/S to co-develop ReSonance™, a cell transplant program targeting auditory nerve restoration for sensorineural hearing loss. The collaboration includes up to $12 million in funding over three years for preclinical development, cell manufacturing, and regulatory preparations.
Financially, Lineage Cell Therapeutics, Inc. (NYSE:LCTX) remains strong, holding $42.3 million in cash as of June 30, 2025, supporting operations into early 2027. Q2 2025 revenues doubled year-over-year to $2.8 million, driven by partnerships and licensing, while the company continues to invest in R&D and manufacturing capabilities. CEO Brian M. Culley highlighted the corporation’s clinical and business progress at major September investor conferences, emphasizing confidence in the pipeline and upcoming scale-up initiatives.
8. Precigen, Inc. (NASDAQ:PGEN)
Year-to-Date Return: 234.82%
Precigen, Inc. (NASDAQ:PGEN) is a biotechnology company developing precision genetic medicines for oncology, infectious diseases, and rare conditions. Its platforms include OmniCAR for adaptable CAR T-cell therapies and ActoBiotics for engineered bacterial delivery of therapeutics. The company recently achieved a major milestone with PAPZIMEOS (zopapogene imadenovec-drba), the first FDA-approved therapy for recurrent respiratory papillomatosis (RRP), a rare lung disease.
In early September 2025, Precigen, Inc. (NASDAQ:PGEN) secured up to $125 million through a non-dilutive financing deal with Pharmakon Advisors to support the commercialization of PAPZIMEOS in the U.S., international expansion, and exploration of pediatric and other HPV-related indications. This funding strengthens the company’s cash position without diluting shareholders, enabling accelerated growth and operational scaling.
Despite these positive developments, Precigen, Inc. (NASDAQ:PGEN) faces challenges, including a planned issuance of 143.81 million shares, which may exert short-term pressure due to potential dilution. Insider activity, including preferred stock conversions and share sales by director R.J. Kirk, also reflects ongoing capital structure shifts. The company continues to report operating losses as it invests heavily in commercialization infrastructure.
7. Gossamer Bio, Inc. (NASDAQ:GOSS)
Year-to-Date Return: 237.02%
Gossamer Bio, Inc. (NASDAQ:GOSS) is a late-stage clinical biopharmaceutical company focused on developing and commercializing seralutinib, an inhaled small molecule therapy for pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). The drug targets multiple receptors, including PDGFR, colony-stimulating factor 1 receptor, and c-KIT, addressing high unmet medical needs in the PAH market. The company has secured licensing agreements for seralutinib and is positioning itself as a key player in this niche cardiovascular sector.
In September 2025, Gossamer Bio, Inc. (NASDAQ:GOSS)’s stock rose nearly 18% following FDA designations and positive developments in its seralutinib pipeline. The firm showcased its strategic focus on pulmonary hypertension treatments at multiple investor conferences, signaling strong growth ambitions. Management also approved inducement stock awards as part of employee incentive plans, underscoring confidence in long-term pipeline advancement, making it one of the best penny stocks to watch.
Financially, Gossamer Bio, Inc. (NASDAQ:GOSS) faces challenges with a net loss of approximately $38.3 million for the recent quarter and a negative shareholder equity position. However, gross margins remain near 100%, suggesting strong potential profitability upon commercialization. Analysts remain optimistic, with strong buy ratings. The ongoing Phase 3 PROSERA study is central to Gossamer Bio’s strategy. Seralutinib’s efficacy and safety results from this trial could support regulatory submissions and market approval, potentially opening access to an underserved PAH market.
6. Matinas BioPharma Holdings, Inc. (NYSE:MTNB)
Year-to-Date Return: 243.14%
Matinas BioPharma Holdings, Inc. (NYSE:MTNB) is a clinical-stage biopharmaceutical company developing oral anti-infective therapies using its proprietary lipid nanocrystal (LNC) platform. Its lead candidate, MAT2203, an oral formulation of amphotericin B, is advancing toward Phase 3 trials for invasive fungal infections such as aspergillosis and cryptococcosis. MAT2203 has shown promise in compassionate use cases, including reversing renal toxicity in patients previously treated with intravenous amphotericin B. Another pipeline asset, MAT2501, is an oral formulation of amikacin.
Recent developments as of September 2025 highlight strategic and operational shifts. The company made leadership changes, adding experienced biotech executives to its Board, and raised approximately $3.3 million through preferred stock and warrant sales. However, setbacks include the termination of global partnership negotiations for MAT2203 in 2024 and an 80% workforce reduction, with product development paused to preserve cash. The business is exploring strategic alternatives, including potential partnerships, sales, or restructuring options.
Despite challenges, Matinas BioPharma Holdings, Inc. (NYSE:MTNB) continues research collaborations leveraging its LNC platform with organizations such as BioNTech and Genentech, aiming to develop new drug formulations and delivery methods. While there are no recent approvals or pivotal trial readouts, the firm remains focused on restructuring and resource management. Its core asset, MAT2203, remains central to future growth, with Phase 3 trial progression expected to be a critical validation point for the oral antifungal therapy.
5. Galectin Therapeutics Inc. (NASDAQ:GALT)
Year-to-Date Return: 272.09%
Galectin Therapeutics Inc. (NASDAQ:GALT) is a biopharmaceutical company developing therapies targeting galectin proteins, with its lead candidate, belapectin, focused on chronic liver diseases such as MASH cirrhosis and portal hypertension. Belapectin, a galectin-3 inhibitor, has shown promising clinical results in reducing varices development and improving liver stiffness, addressing significant unmet needs in liver fibrosis management.
In September 2025, the business reported Q2 financial results with a reduced net loss of $7.6 million, aided by lower R&D expenses. Galectin Therapeutics Inc. (NASDAQ:GALT) ended the quarter with $13.8 million in cash and secured an additional $10 million credit line, extending its operational runway into mid-2026 and providing stability to advance its clinical programs.
Clinical progress centers on the ongoing NAVIGATE Phase 2/3 trial for belapectin. Data presented this year showed a 49.3% reduction in new varices at the 2 mg/kg dose and significant improvements in liver stiffness compared to placebo, with a favorable safety profile and no serious drug-related adverse events. These results support belapectin’s potential as a novel therapy for severe liver disease.
At the H.C. Wainwright 27th Annual Global Investment Conference in early September, CEO Joel Lewis and CMO Dr. Khurram Jamil engaged with investors, highlighting confidence in belapectin and outlining upcoming development milestones.
Investor interest has grown alongside clinical and financial progress, with Galectin Therapeutics Inc. (NASDAQ:GALT)’s stock rising over 7% in the past week and more than 50% in recent months, placing it among the best penny stocks in biotech backed by strong trial data and a solid financial foundation.
4. Atai Life Sciences N.V. (NASDAQ:ATAI)
Year-to-Date Return: 272.18%
Atai Life Sciences N.V. (NASDAQ:ATAI), headquartered in the Netherlands, is a clinical-stage biopharmaceutical company developing innovative treatments for mental health disorders, including depression, anxiety, and substance use disorders. The company leverages a data-driven platform to advance psychedelic-derived and other novel therapeutics aimed at transforming mental health care.
In September 2025, Atai Life Sciences N.V. (NASDAQ:ATAI) actively participated in major investor conferences, including the Cantor Global Healthcare and H.C. Wainwright Annual Global Investment Conferences, demonstrating strong engagement with investors. The company also strengthened its governance by appointing two independent directors, signaling a focus on long-term strategic planning.
ATAI’s stock has surged over 250% year-to-date, recently trading near a 52-week high of $4.72, supported by robust revenue growth of 163.4%. Analysts remain optimistic, with a strong buy consensus.
The business continues advancing key programs, including PCN-101, an R-ketamine derivative for treatment-resistant depression, and RL-007 for schizophrenia subpopulations.
3. MindWalk Holdings Corp. (NASDAQ:HYFT)
Year-to-Date Return: 319.90%
MindWalk Holdings Corp. (NASDAQ:HYFT), formerly ImmunoPrecise Antibodies, is a Bio-Native AI company combining artificial intelligence, multi-omics data, and biologics research to accelerate drug discovery. Its proprietary LensAI™ platform and HYFT technology support pharmaceutical and biotech partners in de-risking development and advancing new therapeutics.
In September 2025, the business reported record first-quarter fiscal 2026 revenue of $7.6 million, a 45% increase year-over-year, alongside expanded gross margins of 53% and reduced operating losses. The company strengthened its balance sheet with $16.1 million in net proceeds from a strategic divestiture of its Netherlands operations, enabling a sharper focus on AI-driven initiatives. This period also marked the company’s rebranding to MindWalk and ticker update to HYFT, reflecting its new identity centered on AI-enabled biologics platforms.
Strategically, MindWalk Holdings Corp. (NASDAQ:HYFT) has advanced its dengue vaccine program into preclinical manufacturing and in vivo studies, showcasing the translational potential of its LensAI platform in infectious disease research .LensAI is also being validated to predict Anti-Drug-Antibody (ADA) risk, helping partners reduce late-stage biologics development failures, making HYFT one of the best penny stocks leveraging AI in biotech innovation.
CEO Dr. Jennifer Bath emphasized HYFT’s strong capital structure and operational execution as foundations for sustainable growth. The corporation’s pivot from a wet-lab services provider to a scalable SaaS-enabled biologics platform highlights its ambition to expand market share in AI-driven pharmaceutical innovation and deliver long-term value for investors.
2. I-Mab (NASDAQ:IMAB)
Year-to-Date Return: 330.68%
I-Mab (NASDAQ:IMAB) is a U.S.-based biotechnology company focused on precision immuno-oncology, developing differentiated therapies for cancer. Its lead candidate, givastomig, is a bispecific antibody targeting Claudin 18.2 and 4-1BB, designed to selectively activate T cells within the tumor microenvironment, aiming to maximize anti-tumor effects while reducing common toxicities of other 4-1BB agents.
In September 2025, the corporation participated in major investor conferences, including the Cantor Global Healthcare Conference and the H.C. Wainwright 27th Annual Global Investment Conference, where it showcased its strategic vision and pipeline progress.
Key clinical progress includes positive Phase 1b dose escalation results for givastomig in combination with immunochemotherapy for first-line metastatic gastric cancer, presented at the ESMO GI 2025 conference. The data revealed an impressive 83% objective response rate at doses selected for expansion. Enrollment in the Phase 1b expansion cohorts was completed ahead of schedule, with topline results expected in the first quarter of 2026, highlighting strong tumor-binding and anti-tumor activity.
Financially, I-Mab (NASDAQ:IMAB) bolstered its resources with an August 2025 underwritten offering raising approximately $61.2 million, bringing its pro-forma cash balance to $226.8 million as of June 30, 2025. This robust capital position is expected to fund operations through late 2028, supporting ongoing clinical development and further pipeline advancement.
1. ABVC BioPharma, Inc. (NASDAQ:ABVC)
Year-to-Date Return: 381.36%
ABVC BioPharma, Inc. (NASDAQ:ABVC) tops our list for being one of the best penny stocks. It is a clinical-stage biopharmaceutical company developing botanically derived therapeutics for oncology, neurology, and ophthalmology. Its pipeline includes treatments for Major Depressive Disorder (MDD), ADHD, metastatic pancreatic cancer, myelodysplastic syndromes, and inflammatory bowel diseases.
The corporation reported strong financial growth, with assets rising 103% to $16.2 million in Q2 and shareholder equity up 18.7%, reflecting operational momentum. The business also said that it earned $350,000 in license revenue in July, which will be reported in the third quarter of 2025.
ABVC BioPharma, Inc. (NASDAQ:ABVC)’s leading pipeline features ABV-1504, a potential safer alternative to Prozac for MDD, and PDC-1421, derived from Radix Polygala, targeting psychiatric disorders with fewer side effects. Phase II trials for both candidates have been completed, with global Phase III trials upcoming.
Its oncology pipeline is also progressing, with Phase II candidates such as BLI-1401 for metastatic pancreatic cancer and BLI-1301 for myelodysplastic syndromes generating investor interest.
While we acknowledge the potential of ABVC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ABVC and that has 100x upside potential, check out our report about this cheapest AI stock.
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