10 Best Biotech Penny Stocks Under $1 in 2022

Slight price changes correlate to significantly higher percentage changes in value when it comes to biotech penny stocks under $1, regardless of industry. If you're seeking the best biotech penny stocks under $1 to invest in right now, make sure you have this information in mind before shelling into a deal. 

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During the past few decades, science and technology have revolutionized medicine. The biotechnology industry experiences this pace of change faster than any other industry. A recent study by Grand View Research projects a compound annual growth rate of over 15 percent for the global biotech market over the next seven years, reaching a value of $2.4 trillion in 2028. Retail investors on websites like Reddit have been pouring money into biotech businesses to profit from the boom.

Pfizer Inc. (NYSE: PFE), Eli Lilly and Company (NYSE: LLY), AbbVie Inc. (NYSE: ABBV), Bristol-Myers Squibb Company (NYSE: BMY), Abbott Laboratories (NYSE: ABT), and GlaxoSmithKline plc (NYSE: GSK) are among the biotech stocks that are now popular on the site. However, the epidemic has pushed these companies' values to new highs, making them out of reach for average investors who are flocking to biotech penny stocks, which offer similar growth at lower rates.

Investors interested in biotech companies should consider industry growth accelerators such as the rise of digital diagnosis, tailored pharmaceutical manufacture, and more collaborations between drug companies. Before the epidemic, the US national health spending had already surpassed $3.8 trillion, according to a report by the Center for Medicare and Medicaid Services. This number has risen dramatically in the last year and a half, and it is expected to continue to grow as more viral varieties emerge.

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What Are Biotech Penny Stocks?

Natural science and engineering are combined in biotechnology. Scientists can modify and improve biological cells, creatures, molecules, and more by applying man-made engineering concepts to them. It enables them to incorporate them into various products and services.

While biotechnology is a relatively recent research subject, people have used its concepts for millennia. Agriculture, cattle breeding, and brewing are all instances of biotechnology from the past. These techniques take naturally occurring elements and improve them for human use using engineering ideas and methodologies.

Biotechnology has advanced significantly throughout time and is currently the main science in creating health, agriculture, food, and a variety of other industries.

The creation of synthetically generated insulin for human use in 1978 is a prominent example of biotechnology in medicine. Previously, animals were the primary source of insulin, which was removed. Scientists used biotechnology to produce genetically altered bacteria that can quickly generate chemicals in large quantities. It has drastically cut the cost and time it takes to make insulin.

10 Best Biotech Penny Stocks Under $1

electroCore (NASDAQ: ECOR)

Another biotech business in the medical field is electroCore. On the other hand, this one focuses on designing and manufacturing a non-invasive electronic device that can relieve headache pain. Patients can use the gammaCore to massage two nerves in the back of their neck with this handheld instrument. Migraines, cluster headaches, Hemicrania Continua, and Paroxysmal Hemicrania are all relieved by this.

The gadget is used at any time or location because it is non-invasive, handheld, and portable. Meanwhile, the potential market is enormous because such a high percentage of the population suffers from recurring headaches and migraines.

The gammaCore product line is also the only FDA-approved product on the market right now. It implies it faces little competition and, if successful, can dominate its market. As a result, it's an excellent biotech penny stock to buy on the cheap.

Halberd (OTCMKTS: HALB)

Halberd is another company that has lately shifted its attention to COVID-19 detection and therapy. Halberd hopes to combat a variety of blood-borne and cerebrospinal fluid-related disorders with their unique extracorporeal treatment. Cancer, blood sepsis, multiple sclerosis, fibromyalgia, and other diseases are among them.

While the treatment is marketed as being particularly effective for detecting COVID-19 quickly, one of its best features is its ability to cure posttraumatic stress disorder (PTSD).

Although the company's relevance to the current pandemic may enhance its worth in the short term, its effectiveness against other illnesses and diseases ensures its long-term viability. PTSD, in particular, is a widespread problem, with 3.5 percent of US people suffering from it each year.

ReWalk Robotics Ltd. (NASDAQ: RWLK)

ReWalk is a company that designs and manufactures exo-suits for patients with limited mobility. While the idea of an exoskeleton may seem far-fetched and futuristic, the technology is currently available.

The ReStore suit, a powered, lightweight, wearable soft exo-suit, is their most recent model. Physical therapists can use this to treat stroke victims and other individuals with lower-body impairments. Physical therapists can wear the garment during rehabilitation and recovery.

Both ReWalk's flagship gadgets have received FDA approval and are on the market. The corporation earned $2 million in the third quarter of 2021, with a gross margin of 58 percent. Additionally, the company got revolutionary device designation for the ReBoot solution from the FDA.

As a result, stock prices skyrocketed at the time, more than tripling to a high of $2.59 a share. ReWalk is currently a very accessible biotech penny stock with a futuristic feel and a bright future.

Diffusion Pharmaceuticals Inc. (NASDAQ: DFFN)

Diffusion, another pharmaceutical biotech firm, specializes in oxygen delivery systems and solutions for patients with various ailments. Trans sodium crocetin (TSC) is their main product, which is a small molecular medicinal. This solution aids oxygen transport to hypoxic tissues by adopting a unique action method.

During the COVID-19 pandemic, Diffusion's concentration on oxygen delivery paid beneficial, as the sickness primarily affects the patient's respiratory system. The corporation's stock price increased significantly as a result in August of 2021. The company also revealed that it had received funding until 2023, indicating that it will remain operational for the foreseeable future. It provides the organization with the time and security it needs to continue developing its solutions.

Akebia Therapeutics Inc. (NASDAQ: AKBA)

Akebia Therapeutics focuses on the discovery of therapies for renal failure-related illnesses. Since its inception in 2007, the company has maintained a strong position in the industry and has become highly specialized.

Vadadustat, their main product, is an oral solution that addresses anaemia and other deficiencies caused by renal illness. The medication is currently undergoing phase 3 medical studies and is pending FDA approval in the United States.

Akebia is a low penny stock and a means to enter into the biotech field, with a price tag of barely more than $2.

Seelos Therapeutics (NASDAQ: SEEL)

Seelos Therapeutics is a pharmaceutical biotechnology company. It is now working on the development of five primary medicinal products. Each one addresses a distinct rare illness with numerous unmet needs. Neurological illnesses including ALS, Parkinson's disease, depressive disorders, and posttraumatic stress disorder are among them.

A board of experienced investors leads the organization and scientists, each with over 20 years of medical sector expertise. The company's goods are now undergoing medical testing and are awaiting market approval.

Hoth Therapeutics Inc. (NASDAQ: HOTH)

Hoth Therapeutics is a biopharmaceutical firm that is working on a variety of products and solutions. Topical lotions, vitamins, Lupus therapies, and other items fall within this category. However, the company's main strength is its focus on COVID-19 treatment.

Hoth is now working on several treatments to combat the disease. Additionally, the VaxCelerate technology has been successfully installed at Massachusetts General Hospital's Vaccine and Immunotherapy Center (VIC) (MGH). It enables the development of a self-assembling vaccine (SAV) that is effective against a variety of diseases. Scientists are currently working on a vaccine for SARS-CoV-2 using the same method. Over the last few years, Hoth has grown significantly. Share prices have doubled multiple times, though not consistently.

Acasti Pharma (NASDAQ: ACST)

Acasti Pharma is a biopharmaceutical business that is currently working on three different drugs. CaPre, their cardiovascular medication, is their major product. Hypertriglyceridemia is a chronic illness that affects more than one-third of the adult population in the United States.

The medication has recently completed phase 3 clinical testing. While it produced satisfactory results, it was unable to pass due to the study's abnormally strong placebo effects. As a result, the medicine will soon be subjected to a new study.

Hypertriglyceridemia is a common ailment that affects a huge percentage of the world's population. Hence the treatment and the company as a whole have a lot of potential. Any therapy or cure for it would be highly profitable, as the market for such a product is severely lacking.

Asensus Surgical, Inc. (NYSE: ASXC)

Asensus Surgical is a laparoscopic surgery robots firm. The company can provide surgeons with a digital interface that aids in less invasive treatments using advanced robotics technology.

This robotic technology allows for more precision and eliminates inefficiencies during surgery. It can also extend a surgeon's career, as many are forced to quit due to worries about their performance at a young age. It is imperative because the Association of American Medical Colleges predicts a shortfall of approximately 33,000 surgeons and specialists by 2030.

As a result, Asensus seeks to address both current and future medical issues. This strengthens its position in the market and provides a long-term business strategy. While the company's price has been dropping for the past six months, it has some exciting technology and has created a number of partnerships that will help it succeed in the coming years.

Pluristem Therapeutics Inc. (NASDAQ: PSTI)

Pluristem is an Israeli pharmaceutical business specializing in stem cell research and therapeutic development. The company's products can be used to treat a variety of ailments affecting various organs and body parts. Pluristem's solutions are also incredibly helpful in helping people recover from surgeries and other stressful events in their lives.

Pluristem, like many other biotech companies, has been focusing on COVID-19 treatment during the last year. The company's treatments also effectively treat the long-term effects of COVID-19-induced acute respiratory distress syndrome.

Pluristem's solutions are currently undergoing medical trials in the United States, the European Union, and Israel, spanning phases one to three. It offers them a three-product pipeline to work with. A partnership with Israel's largest food manufacturer to establish a cultured food platform was also revealed. It will broaden the range of uses for the company's technology and boost its market position. 

Are Biotech Penny Stocks Worth Buying or Not?

Biotechs aren't always "safe" investments, which is why they're rarely at the top of anyone's list of smart retirement savings options. Failures in the drug development process are common, unanticipated, and often disastrous for stock values. Few businesses have recurrent revenue, and many don't have any at all. Even after a drug or technology is on the market and earning income, a company's long-term profitability isn't guaranteed.

However, when seen as part of a well-balanced portfolio, the possibilities for biotech investments shine considerably. If your retirement portfolio already has a solid base of robust stocks and all it needs is a little more growth exposure, biotechs could be a terrific way to tick that box if you use the appropriate method.

If you're okay with taking measured risks and accepting what I've said so far, keep reading to learn a crucial approach for getting the most out of your biotech investments. The initial step is to choose five biotech businesses for your basket. To maximize your potential upside from holding them for a long time, they should be little and early in the development cycle.

That means it's probably too late to invest in a successful player like Moderna (MRNA 5.81 percent), which, although being a strong stock, won't be able to increase by the amount this approach requires. Moderna's market capitalization now exceeds $56 billion. Look for biotechs with a market capitalization of less than $2 billion.

Look for companies that are still developing their first product rather than those with the highest market capitalization. Most businesses will fail as they grow older, and more than one may go bankrupt. However, the survivors could grow to be several times their current size over time. Each update on clinical trial progress toward commercialization will enhance the stock price, and commercializing a drug will boost it even more.

In the instance of Moderna, if you had bought it as part of a stock basket three years ago, before it became well-known, you would have made roughly 580 percent, significantly more than the 64 percent or so that a market-tracking index fund would have given you.

You don't need too many victories like that to make your retirement portfolio seem attractive. To reap the advantages of your picks' success, you'll need to be willing to keep them for at least five years. Even under ideal circumstances, developing medications takes a long time.

Conclusion

New opportunities emerge every day in biotech, especially when micro-companies compete to be the next media darling. We'll concentrate on organizations that have made a name for themselves in the penny stock market. Don't worry; all of these options have lots of room for growth (and plenty of risks, too).

Investing in biotech is currently a high-risk, high-reward proposition. However, it is true of all penny stocks because most of the companies in this category are still in the early phases of growth or have yet to reach widespread recognition.

Biotech firms are typically active in the medical and pharmaceutical industries. As a result, they must pass rigorous trials and screening processes before being approved for distribution. Because they can take years to finish, they are a risky early investment. Unexpected setbacks and problems frequently occur, lengthening the required time and delaying the potential ROI.

As with all penny stocks, you should diversify your portfolio and only invest as much as you are willing to lose. Winning and losing both are sides of a same coin. You can reduce your risk and put your investments on hold in this manner.