Penny stock investments in the biotech sector abound right now
after the recent market turmoil this summer. Healthcare and biotech
penny stocks can be volatile, particularly those drug manufacturers
that are not yet profitable and are waiting on an important FDA
approval notice. But these stocks can be very good investments if
you buy at the right time.
My quantitative screens show that a number of biotech penny
stocks - that is, cheap healthcare companies trading for less than
$3 a share - have big upside potential for September as volume
picks up on Wall Street. Here are 9 top penny stocks in the biotech
sector to consider:
Athersys Inc. (
Athersys, Inc. (NASDAQ:
) is a biopharmaceutical company engaged in the discovery and
development of therapeutic products and is developing
pharmaceuticals to treat indications such as obesity, certain
cognitive and attention disorders, and narcolepsy or other forms of
excessive daytime sleepiness. Shares of ATHX have risen
significantly in the past year, gaining +157% and both meeting and
exceeding analyst estimates so far in 2010.
Catalyst Pharmaceutical Partners (
Catalyst Pharmaceutical Partners, Inc.
) is a development-stage biopharmaceutical company focused on the
development and commercialization of prescription drugs targeting
central nervous system diseases with a focus on the treatment of
addiction and epilepsy. CPRX shares are up +70% year-to-date and
growth potential seems promising for this small cap drug maker.
Rexahn Pharmaceuticals (
) is a clinical stage biopharmaceutical company developing and
seeking to deliver cures for cancer and disorders of the central
nervous system in patients. Rexahn's three clinical stage drug
candidates are Archexin, Serdaxin, and Zoraxel. With RNN stock up
+78% since the start of the year, shareholders may wan to keep
their eye on this stock and its positive track record for beating
Inhibitex Inc. (
) is a biopharmaceutical company focused on the development of
differentiated anti-infective products to prevent and treat serious
infections. This small cap pharma stock is showing some good growth
potential with year to date performance at +63%. In addition to
shares surging this summer, prospective investors should note that
INHX has beat earnings estimates for three of the past four
Cyclacel Pharmaceuticals (
Cyclacel Pharmaceuticals, Inc.
) is a development-stage biopharmaceutical company engaged in the
discovery, development and commercialization of mechanism-targeted
drugs to treat human cancers and other serious disorders. With
shares up +40% since January, CYCC could end up being a bargain at
its current price of around $1.45 if it can manage to swing into
Luna Innovations Inc. (
Luna Innovations Inc
) is engaged in research, development and commercializing of
technologies in two primary areas of focus: Test & measurement,
sensing, and instrumentation products and health care products.
Luna shares have gained an impressive +196.8% since the end of
August 2009 despite the dip share prices have taken this summer.
Don't count out the long-term earning potential for this Roanoke,
Va.-based small cap.
Neuralstem Inc. (
) is focused on developing and commercializing of treatments for
central nervous system disease based on transplanting human neural
stem cells and small molecule drugs. The future could be bright as
the company continues to work into their clinical trials to treat
Lou Gehrig's disease; shares of Rockland, Md.-based Neuralstem have
gone up in value +80% since this time last year.
AVI BioPharma Inc. (
AVI BioPharma, Inc.
) is a biopharmaceutical company specializing in the discovery and
development of ribonucleic acid (RNA) based drugs targeting a range
of diseases. AVII shares have been on an impressive climb this
summer and shareholders have already enjoyed +54% gains since June.
The Washington-based company has also beat earnings estimates
during two of the past three quarters and is getting the attention
of savvy investors looking to add some stability to their
DUSA Pharmaceuticals Inc. (
DUSA Pharmaceuticals, Inc.
) is a vertically integrated dermatology company that is developing
and marketing Levulan photodynamic therapy and other products for
common skin conditions. With +99% increases in DUSA share value
from one year ago, investors who haven't heard of this small cap
stock will likely be taking notice of the high-value and low
financial commitment involved in DUSA stock.
As of this writing, Louis Navellier did not own a position in
any of the stocks named here.
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