5 Biotech Penny Stocks with Growth Catalysts

In this article, we discuss 5 biotech penny stocks with growth catalysts. If you want to see some more stocks in this selection, click 10 Biotech Penny Stocks with Growth Catalysts.

5. Brickell Biotech, Inc. (NASDAQ:BBI)

Number of Hedge Fund Holders: 5

Share Price as of April 5: $0.265

Brickell Biotech, Inc. (NASDAQ:BBI) is a Colorado-based clinical stage biotechnology company that primarily develops prescription therapeutics for treating dermatological conditions and other prevalent skin diseases. The shares of Brickell Biotech, Inc. (NASDAQ:BBI) were priced at $0.265 as of April 5. 

The company recently shifted focus from dermatology to inflammatory and autoimmune diseases. Brickell Biotech, Inc. (NASDAQ:BBI)’s lead asset is BBI-02, a novel DYRK1A inhibitor that is expected to be clinically tested in the first half of 2022, and the Phase I data from the trials will be gathered by year end. Upon receiving positive affirmation from the clinical trial, BBI-02 has development potential in a range of autoimmune and inflammatory diseases, where its differentiated mechanism could lead to significant value for Brickell Biotech, Inc. (NASDAQ:BBI). 

On March 8, William Blair analyst Tim Lugo initiated coverage of Brickell Biotech, Inc. (NASDAQ:BBI) with an Outperform rating and a $2 fair value estimate. With the company’s early-stage pipeline targeting novel mechanisms in autoimmune and inflammatory conditions, Brickell Biotech, Inc. (NASDAQ:BBI)’s pivot from its dermatology focus can be commercially huge, the analyst told investors in a research note. He believes the present valuation “holds a strong risk/reward profile” as compared to industry rivals, offering the possibility for a “10-fold increase” from current levels.

According to Insider Monkey’s Q4 data, 5 hedge funds were bullish on Brickell Biotech, Inc. (NASDAQ:BBI), compared to 3 funds in the earlier quarter. The total stakes held in the fourth quarter were valued at $865,000.