Healthcare Penny Stocks: An Overview
Did you know that the healthcare industry is one of the largest and fasting growing industries not just in the United States, but in the world? By 2022, global healthcare spending could reach over $10 trillion.
For those looking to get into the healthcare stock market, penny stocks can be a good place to start. Penny stocks are those that trade for under $5 a share.
There are some penny stocks that trade on the New York Stock Exchange (NYSE), but most trade through the over-the-counter (OTC) bulletin board, or OTCBB.
Medical or healthcare penny stocks are those that trade for $5 or less per share. Sometimes, you’ll even be able to find them for $1 or less per share.
In this article, we’ll take a closer look at some of the hottest healthcare penny stocks on the market today. These are the best penny stocks on the market today but invest wisely as the share price could change rapidly, even in the short term. This can dramatically affect profitability.
Healthcare Penny Stocks: Before You Invest
While these stocks make it easy to invest in the stock market with little capital, that doesn’t mean they’re the right choice for everyone.
These kinds of stocks are typically considered high-risk because they are speculative, and generally don’t have liquidity.
That means you may get stuck for several days, or even weeks until there is enough supply or demand to enter or exit a company on the market.
When deciding what you should invest in, consider the following areas:
What’s next for the company?
What are they treating?
Is the company supported by others in the industry? If they are sticking out on their own, it could be that they lack support from the medical community.
In this case, the investment risk is fairly high.
To really gain traction and keep funding until the product, treatment, or medical development can make it to FDA approval and market use, any company will need strong partnerships.
What does the company’s financial history look like? It’s perfectly normal not to make a profit for several years because you need to constantly reinvest into the company and its developments.
So, look beyond immediate profit and loss.
Find out how much capital they have, where it is coming from, etc. Look beyond their real-time stock price and IPO.
How have they done over the last week? The last month? They last year? What’s their market cap? These are all the questions you should ask when looking to invest in a healthcare stock.
What’s next for the company?
Where are they now, and what are their plans for the future? How close are they to bringing a product to the market? What stage are they in clinical trials?
Knowing the next steps can let you know whether you can expect to make a return on your investment and how much promise the company shows. Many companies don’t ever make it to FDA approval, so those that are early in the process are definitely at higher risk.
If they already have products on the market, that’s a good sign.
What are they treating?
The more widespread the condition they’re working toward treating is, the more funding they are likely to receive.
Whether or not there is a wide variety of treatments available on the market today also influences success or failure. For example, during the Coronavirus pandemic, companies that have focused on vaccines and treatment have grown significantly.
Top 5 Healthcare Penny Stocks to Know
Now that you’ve decided you want to learn more about penny healthcare stocks you can invest in right now, let’s take a closer look at some top penny stocks to buy to expand your portfolio. These are listed in no particular order and should not be construed as official investment recommendations.
Valeo Pharma, Inc. (OTCMKTS: VPHIF)
Valeo Pharma Inc. trades on the OTC marketplace. The Canadian company was founded in 2003 and is headquartered in Kirkland, Quebec. They have an extensive portfolio of products including:
Redesca: A biosimilar drug indicated for Prophylaxis of Thromboembolic Disorders
Hesperco: An antioxidant indicated for immune system support
Onstryv: An antiparkinson agent, indicated for Parkinson’s disease
M-Elson: A narcotic analgesic indicated for pain management.
Ametop Gel: A topical analgesic indicated for local anesthesia prior to venepuncture
Ethacrynate Sodium: A saluretic-diuretic agent indicated for CHF and Nephrotic Syndrome
Synacthen Depot: An adrenocorticotropic hormone indicated for Multiple Sclerosis and Nephrotic Syndrome.
Ondansetron: An antiemetic indicated to prevent nausea and vomiting
Benztropine: An antiparkinson agent, indicated for Parkinson’s disease
Yondelis: A recently approved medicine used in the treatment of certain types of cancer
The main focus is specialty products aimed at fighting against neurodegenerative diseases, cancer, and pain. As you can see, their products and treatments span a wide variety of healthcare needs. This may be a contributing success factor.
According to Yahoo Finance, the 52-week range is $0.26-$1.86.
Curis, Inc. (NASDAQ: CRIS)
Curis, founded in 2000, focuses on the development of cancer treatments. As a biotech company, they focus on treatment that will regenerate and restore human tissue and organs. In April, the company announced that the U.S. FDA granted Orphan Drug designation to CA-4948, which is a first-in-class therapeutic development for acute myeloid leukemia (AML) and myelodysplastic syndromes (MDS).
The 52-week range for this stock is $0.69-$13.44 per share.
Revive Therapeutics, Ltd. (OTCMKTS: RVVTF)
Revive Therapeutics, Ltd. is a cannabis and cannabinoid pharmaceutical company focused on rare inflammatory areas, such as liver disease. The company recently received FDA Orphan drug status for using CBD to treat auto-immune hepatitis or liver disease.
They also received the designation for the treatment of ischemia and reperfusion injury for organ transplantation. They recently acquired Psilocin Pharma Corp., so they will soon move into advancing Psilocybin-based treatments.
The FDA also has approved a randomized, double-blind, placebo-controlled confirmatory Phase 3 clinical trial protocol to evaluate the safety and efficacy of Bucillamine in patients who have tested positive for COVID-19.
The 52-week low is 0.07 and the 52-week high is $.72.
Onconova Therapeutics, Inc. (NASDAQ: ONTX)
Onconova Therapeutics, Inc. is a clinical-stage biopharmaceutical company that’s focused on finding and developing drugs for cancer patients. It has proprietary targeted anti-cancer agents that are supposed to disrupt the pathways necessary for cancer cells to continue to grow and spread. The company was founded in 1998 and started trading on the NASDAQ in 2013.
The company’s stock history indicates that it has been on a bit of a rollercoaster, with some rather significant volatility over the last few years. That’s a bit expected with any major biopharmaceutical company, though. While its stock performance is a bit volatile, its cancer research and development is sure to remain a promising indicator.
The 52-week high is $1.93 and the 52-week low is $0.19.
Opko Health, Inc. (NASDAQ: OPK)
Opko Health, Inc. is a global healthcare company with more than 5,500 employees across nine countries. They were initially founded in 2007, and have grown significantly since then. They offer biomedical and pharmaceutical business solutions to help healthcare professionals, researchers, and patients. They own and operate one of the largest full-service clinical diagnostic laboratories in the U.S., BioReference Laboratories.
They have a drug on the market today, Rayaldee, indicated for the treatment of secondary hyperparathyroidism. Their other major product is the 4KScore Test, a blood test for the risk of aggressive prostate cancer.
The company’s stock history indicates that it has been on an upward trend over the last few years. The 52-week high is $6.47 and the 52-week low is $1.68.
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If you think healthcare and biotech penny stocks are a bit more risk than you’re willing to take, consider trading penny stocks in other industries like mining or tech. You can also consider adding a few biotechnology stocks to your watchlist and keep a close eye on them for a bit before you actually invest.
You may also think about investing in exchange-traded funds (ETFs) and hedge funds through a brokerage.
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Disclaimer: All investments involve the risk of loss. Nothing on this website should be misconstrued as investment advice. Any reference to an investment’s historical or projected performance is not a recommendation or guarantee of profit or desired outcome.