Biotech stocks are some of the market’s most explosive movers in 2025, with small-cap biotech penny stocks leading the charge. As earnings season heats up and the sector sees a wave of clinical data and regulatory catalysts, traders and investors alike are scanning for the best biotech penny stocks to watch.
If you want to know what I’m looking for — check out my free webinar here!
These low-priced biotech stocks can deliver triple-digit gains off successful drug trial news or government contracts—but just as quickly, dilution or failed trials can send shares crashing. With high volatility comes high risk and potential high reward. That’s why having a clear trading plan—and focusing on catalysts that move the market—is critical.
Here are three of the top biotech stocks to watch for August 2025.
Top 3 Biotech Stocks to Watch in August 2025
| Stock Ticker | Company | Performance (YTD) |
| NASDAQ: BTAI | BioXcel Therapeutics Inc | |
| NASDAQ: TNXP | Tonix Pharmaceuticals Holding Corp | |
| NASDAQ: SNGX | Soligenix, Inc. Common Stock |
Biotech penny stocks are infamous for sudden price spikes and equally rapid sell-offs. These three picks each feature a low share float combined with upcoming or recent catalysts — perfect ingredients for volatility-driven traders.
These aren’t stocks that I’m necessarily buying…
These are stocks that I’m watching.
Want to see my full list of biotech penny stocks?
Top Biotech Penny Stocks for August 2025
I’m watching the following three picks extra closely…
1. BioXcel Therapeutics Inc (NASDAQ: BTAI) — Phase 3 Data on Deck
BioXcel Therapeutics (BTAI) is generating buzz after the company wrapped its pivotal SERENITY At-Home Phase 3 trial for IGALMI, its AI-powered agitation treatment for patients with bipolar disorder and schizophrenia.
Read more about BTAI momentum in August.
- Key Catalyst: Topline Phase 3 data expected in August. Any positive readout could trigger a major run in BTAI shares, especially with its tiny 5 million share float.
- Why Watch: This is a classic biotech penny stock setup—low float, big news catalyst, and strong chart history. Traders are eyeing a breakout above previous resistance as the next wave of buyers steps in.
- Risk Factor: Biotech stocks are notorious for dilution after spikes. Always trade with a plan.
2. Tonix Pharmaceuticals Holding Corp (NASDAQ: TNXP) — Government-Backed Biotech Play
Tonix Pharmaceuticals (TNXP) has been on fire in 2025, fueled by a $34 million contract from the U.S. Department of Defense to develop TNX-4200, a new antiviral for biodefense. The stock’s float is just 7 million shares, setting up the potential for continued volatility.
- Key Catalysts:
- FDA decision on TNX-102 SL for fibromyalgia due by August 15, which already holds Fast Track designation.
- Recent addition to the Russell 2000 and 3000 indexes, which could drive new institutional buying.
- Why Watch: With multiple catalysts on deck—government funding, regulatory milestones, and index inclusion—TNXP is a biotech stock that traders can’t ignore.
- Risk Factor: This biotech penny stock is highly speculative. Failed data or an FDA rejection could lead to steep pullbacks.
- Read More: TNXP’s Race Against Time.
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3. Soligenix, Inc. (NASDAQ: SNGX) — Rare Disease Breakthrough Potential
Soligenix (SNGX) is in the spotlight after positive Phase 2a results for its lead drug candidate, SGX945, targeting Behçet’s Disease—a rare, chronic inflammatory disorder with few treatment options.
- Key Catalyst: The company’s promising clinical data sets the stage for further trial progress and potential regulatory engagement.
- Why Watch: SNGX fits the biotech penny stock mold: ultra-low float (around 3 million shares), strong data, and rare disease focus—often a recipe for large moves if momentum builds.
- Soligenix Stock Shoots Up: Time to Dive In?
- Risk Factor: As always with biotech stocks, news-driven moves can be sharp in both directions.
What Makes Biotech Penny Stocks So Volatile?
Biotech stocks, especially penny stocks under $5, can experience massive swings on trial results, FDA approvals, or government contracts. Even small positive developments can send these biotech names soaring. However, failed studies, dilution, or negative regulatory news can cut prices in half overnight.
Key tips for trading biotech penny stocks:
- Only trade stocks with high volume and clear catalysts.
- Avoid OTC or pink sheet biotech stocks—they’re riskier and less transparent.
- Never “invest” in biotech penny stocks; trade them with discipline and always have an exit plan.
- Focus on the management team, funding situation, and clinical pipeline.
How to Approach Biotech Stocks Safely
- Research clinical trial timelines and results.
- Watch float size — smaller floats equal bigger moves.
- Follow FDA calendars and government contract announcements.
- Never invest more than you can afford to lose.
- Trade setups should align with your proven chart patterns.
Final Thoughts: Best Biotech Stocks to Watch in August 2025
Biotech stocks offer some of the market’s most dramatic moves — but only when traded with discipline and preparation. BioXcel Therapeutics (BTAI), Tonix Pharmaceuticals (TNXP), and Soligenix (SNGX) each have unique setups and catalysts that could fuel explosive price action this month.
If you’re hunting biotech stocks for August 2025, keep these three on your radar — but trade smart, and remember: in biotech, patience and precision are everything.
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This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.
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