15 Best Biotech Penny Stocks To Watch In 2023

Investing in biotech penny stocks can often seem like a quick road to riches.

But the reality is that over 99% of investors who invest into small cap penny stocks lose money.

Biotech penny stocks are typically companies under $5.00 per share or have a market cap of less than $1 Billion.

They are also very volatile, meaning the stock can have while price swings in both directions.

These companies are often highly speculative, looking to solve some of the world’s most pressing health challenges.

This can range from curing different autoimmune diseases, arthritis, Alzheimer’s and even cancer.

While it is common that biotech penny stocks trade on over-the-counter (OTC Markets), they can also trade on larger exchanges including the NYSE or NASDAQ.

Now that we understand a bit about biotech penny stocks and their history, let’s explore some that have the most potential.

Below, we will present the 15 Best Biotech Penny Stocks to watch in 2023!

Table of Contents

Best Biotech Penny Stocks for 2023

History of Penny Stocks

When you think of penny stocks, small-cap biotech companies often come to mind.

Biotech penny stocks have a history of extreme volatility, making some investors extremely rich. On the other hand, they are known for completely whipping investors out.

Penny stocks typically trade on Over-The-Counter exchanges like the OTC. You can also find them on major Canadian and U.S. exchanges like the NYSE, Nasdaq, CVE, and TSXV.

The term ‘’penny stock’’ prior to its reclassification by the Securities and Exchange Commission (SEC) referred to stocks that traded for ‘’pennies on the dollar.’’

More often than not, penny stocks are commonly defined as stocks that trade for less than $5.00 per share.

However, this definition does not take into account the market cap of the company which could be north of $1 billion dollars.

Therefore, a better definition for a penny stock would be a company that trades for less than $5.00 per share and has a market cap of less than $1 billion.

But investors alike will often carry their own definition of what a penny stock could be.

Securities and Exchange Commission Act of 1934

In 1934 during the reclassification of securities, the U.S. Government passed the Securities and Exchange Act to regulate any and all securities between parties.

The Act sought out to regulate the financial markets to establish rules and transparency for settlement of securities.

This included preventing fraudulent activity including deterring insider trading among publicly traded entities.

The SEC also disclosed that any securities which trade less than $5.00 per share could not be listed on any national exchange or be included in an index.

However, this rule would change, allowing penny stocks to list on national exchanges again.

Although, companies would have to maintain stringent requirements.

An example would be Nasdaq’s Listing Rule 5550(a)(2), requiring a public company to maintain a minimum bid of $1.00 per share.

If they fail to maintain the minimum bid price for a period of at least 30 days, they will receive a deficiency notice and likely be delisted.

7 Tips for Investing In Biotech Penny Stocks

Focus on companies with a large addressable market
Research the company’s management team and track record
Pick companies that are solving multiple problems
Invest into companies that might be on the brink of FDA approval
Read the company’s financial statements
Learn technical analysis
Buy Low, Sell High

Is Now The Time to Buy These Penny Stocks?

Investing always comes with its risks, but investing in biotech penny stocks is the pinnacle of risky.

The reality is, that 99% of investors who invest in biotech penny stocks lose money.

Taking this knowledge at face value, your odds of being in the 1% of successful biotech penny stock investors is slim to none.

However, there are strategies and tactics that you can adopt to be successful. This can include day trading or swing trading for marginal gains.

There are certainly many small cap biotech penny stocks that hold a lot of potential. This can include 23andMe, the genomics and DNA testing platform, or Cassava Sciences, looking to cure Alzheimers.

If you’re more risk averse and looking to make extra income, then you might consider trading with these companies. But investing in them for the long term might not be a bet that ends up panning out.

Disclosure: The author holds no position mentioned in this article. Freedom Stocks has a disclosure policy.