Biotech penny stocks are low-priced shares in small pharma and drug development and treatment companies. It’s normal for a biotech penny stock to spike after good study results or drug pipeline news. But this volatility cuts both ways — these sketchy stocks often dilute their float to raise cash, hurting their share value in the process.
Table of Contents
- 1 5 Biotech Penny Stocks to Watch in March 2025
- 2 Top Biotech Penny Stock Picks
- 3 Best Biotech Penny Stocks for March 2025
- 4 Biotech Stocks Under $5
- 5 Upcoming Biotech Companies
- 6 What Are Biotech Penny Stocks?
- 7 Biotech Investing for Beginners
- 8 Risks of Investing in Biotech Penny Stocks
- 9 Top Tips for Buying Biotech Penny Stocks
- 10 How To Make Money in Biotech Stocks
- 11 FAQs
5 Biotech Penny Stocks to Watch in March 2025
My top 5 biotech penny stocks to watch for March 2025 are:
- NASDAQ: ORGO — Organogenesis Holdings Inc — The Earnings Winner Biotech Penny Stock
- NASDAQ: PSTV — Plus Therapeutics Inc — The Biotech Spiker With the Rare FDA Designation
- NASDAQ: SCNX — Scienture Holdings Inc — The Overdose Prevention Drug Biotech Penny Stock
- NASDAQ: SLXN — Silexion Therapeutics Corp — The Pancreatic Cancer Biotech Penny Stock
- AMEX: AEON — Aeon Biopharma Inc — The Reverse Split Biotech Penny Stock With High Float Rotation
Don’t get too excited – biotech stocks are NOTORIOUS for diluting immediately after their runs …
There is no such thing as a sure thing. That goes double for the biotech sector.
These aren’t stock “picks.” They’re stocks I’m watching to see if they fit my patterns.
That’s what trading is. Don’t burn yourself out on low-potential plays. Be safe, and wait for the truly Grade-A setups …
There’s no guarantee that any of my watchlist picks will be tradeable. But if something happens, smart traders should be ready.
Here’s some background info on biotech penny stocks:
- What is the most promising biotech penny stock?
A stock with a lot of volatility like Organogenesis Holdings Inc (NASDAQ: ORGO) is a good bet for the most promising biotech penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.
- What are the top 3 biotech penny stocks to buy now?
My top 3 biotech penny stocks to buy now (as long as their price action is strong) are Organogenesis Holdings Inc (NASDAQ: ORGO), Plus Therapeutics Inc (NASDAQ: PSTV), and Silexion Therapeutics Corp (NASDAQ: SLXN).
- Which biotech penny stocks have a “Strong Buy” analyst rating?
Analysts don’t give any biotech penny stocks “strong buy” ratings. These stocks are sketchy and unstable, and should never be investment targets. Always trade with a plan.
Now, let’s get to the top biotech penny stocks to watch this month!
Top Biotech Penny Stock Picks
My top biotech penny stock picks for March — rated on chart pattern, price action history, and news — include the following:
| Stock Ticker | Company | Performance (YTD) |
| NASDAQ: ORGO | Organogenesis Holdings Inc | + 58.44% |
| NASDAQ: PSTV | Plus Therapeutics Inc | + 13.87% |
| NASDAQ: SCNX | Scienture Holdings Inc | – 76.86% |
| NASDAQ: SLXN | Silexion Therapeutics Corp | – 32.66% |
| AMEX: AEON | Aeon Biopharma Inc | – 97.57% |
The biotech penny stocks on this list are some of the wildest movers on the market …
Trading any of these stocks should be approached with a clear strategy and an understanding of the risks involved. I don’t trade until I see a setup I like.
Jump ahead to get to my trading plans for these top biotech penny stocks!
Best Biotech Penny Stocks for March 2025
These are the top 5 biotech penny stocks to watch in March 2025 …
No, that doesn’t mean that I’ll trade them. Learn the patterns that work best for you — you might see a chance to use them with these stocks!
#1: Organogenesis Holdings Inc (NASDAQ: ORGO) — The Earnings Winner Biotech Penny Stock
My first biotech penny stock pick is Organogenesis Holdings Inc (NASDAQ: ORGO).
On February 27 during after hours, ORGO announced bullish quarterly data.
- EPS of $0.04, which beat expectations by $0.05.
- Revenue of $126.6 million, which beat expectations by $17 million.
The price spiked 110%* in less than two days.
And the chart shows consolidation above $5 in early March … It could rally off of that level!
Strong earnings data is the kind of news that can push stocks higher over multiple days and weeks. Get ready for more volatility from ORGO.
#2: Plus Therapeutics Inc (NASDAQ: PSTV) — The Biotech Spiker With the Rare FDA Designation
My second biotech penny stock pick is Plus Therapeutics Inc (NASDAQ: PSTV).
On March 6 during premarket hours, PSTV announced that it was granted F.D.A. drug designation for its treatment of lung cancer.
That’s big news for a penny stock! The involvement of an official agency, like the F.D.A., shows legitimacy for an otherwise trashy company.
The stock spiked 550%* in less than two days …
The extreme volatility of this stock is also attributable to the low share count in the float.
StocksToTrade shows that the float is only 5.7 million shares. That’s below our day trading goal of 10 million shares or fewer. The low supply of shares will help prices spike higher when demand increases.
There’s no telling how high this penny stock could spike with a 5 million share float.
What I’m watching for: The price ran to $2.50 after hours on March 6. That’s the true breakout level.
#3: Scienture Holdings Inc (NASDAQ: SCNX) — The Overdose Prevention Drug Biotech Penny Stock
My third biotech penny stock pick is Scienture Holdings Inc (NASDAQ: SCNX).
On March 6 during premarket hours, SCNX announced it would officially launch an opioid overdose treatment in collaboration with Kindeva Drug Delivery.
The price spiked 60%* that day, but prices quickly fell below the pre-spike level.
It’s a great reminder that these volatile penny stocks are day trades only.
Don’t hold shares in hopes the price rebounds …
Instead, look for our trade patterns in the price action. Get in and get out with a calculated trade setup.
That’s how we mitigate risk on these stock spikes.
#4: Silexion Therapeutics Corp (NASDAQ: SLXN) — The Pancreatic Cancer Biotech Penny Stock
My fourth biotech penny stock pick is Silexion Therapeutics Corp (NASDAQ: SLXN).
This stock has a huge history of running. That’s a great sign, past spikers can spike again.
Take a look at the YTD chart below. Every candle represents one trading day:
SLXN chart multi-month, 1-day candles Source: StocksToTrade
The latest spike on March 5 came after the company announced bullish data from its trial for the treatment of pancreatic cancer.
And StocksToTrade shows that the float is only 1.5 million shares …
The next spike from SLXN could come any day!
#5: Aeon Biopharma Inc (AMEX: AEON) — The Reverse Split Biotech Penny Stock With High Float Rotation
My fifth biotech penny stock pick is Aeon Biopharma Inc (AMEX: AEON).
On February 24, this stock plunged lower after the company announced a 1-for-72 reverse split.
Theoretically, reverse splits make a stock’s share price more expensive because every remaining share holds more value.
That wasn’t the case for AEON … and it points to something strange happening with the stock.
Whenever something strange starts to happen in the market, my mind immediately thinks of potential volatility. Volatility that we can use to make gains.
Here’s another great sign from AEON: StocksToTrade shows there’s a float of only 811k shares!
And there’s already some pretty high volume days in March. On March 10 the stock traded more than 30 million shares.
And on March 10, the price rallied past $1 …
I’d look for this stock to potentially fill the gap back to $5 on the daily chart.
There’s a breakout level at $2 from February 26. Keep an eye on that price level!
*Past performance does not indicate future results
Biotech Stocks Under $5
The allure of hot sector stocks, especially when they’re also penny stocks, is undeniable. These stocks present a unique blend of opportunity and volatility. The biotech industry is booming, with advancements and applications spreading across various sectors, from drug development to gene editing, making biotech stocks a magnet for investors looking for the next big breakthrough. The gains here can be proportionately greater than those from more established stocks, mainly because even minor positive developments or clinical trial results can send their prices soaring.
However, it’s crucial to approach these opportunities with a clear strategy and an understanding of the risks involved. The volatility of penny stocks, combined with the speculative nature of biotech ventures, means that while the potential for rapid gains is significant, the risk of losses is equally high. Conduct thorough research, looking beyond the hype. And never invest in these stocks — only trade them.
Remember, the key to success in trading biotech stocks under $5 is not just about jumping on every opportunity but being selective and strategic. It’s about leveraging the explosive potential of the biotech sector while managing risk meticulously. By focusing on companies with the potential to lead in their niche, traders can capitalize on the disproportionate gains that these penny stocks offer, all while keeping their investment strategy tight and cutting losses quickly.
Upcoming Biotech Companies
Keep an eye on the news for upcoming biotech companies. These are often the ones that have the most potential for high returns. But be cautious; not every new biotech company will be a winner. Always do your due diligence before adding any stock to your watchlist.
It’s also a good idea to keep tabs on the overall market. Monitoring the market isn’t just about checking prices; it’s about understanding trends and identifying potential breakout stocks. This proactive approach can give you a leg up in making profitable trades. If you’re looking for a curated list to help you get started, check out these stocks to watch.
What Are Biotech Penny Stocks?
Biotech penny stocks are shares of small biotechnology companies that trade at relatively low prices, typically under $5 per share. These companies are often in the early stages of development, focusing on innovative medical treatments and technologies. The low price point makes these stocks accessible to many traders, but it also means they come with significant risks.
These companies are heavily involved in the discovery and development of new medicines and therapies for diseases and disorders. For example, they may be working on groundbreaking treatments for conditions like Alzheimer’s disease or cancer. Due to the speculative nature of these ventures, biotech penny stocks can exhibit high volatility, offering both substantial upside potential and considerable downside risk.
The allure of biotech penny stocks lies in their growth potential. A successful product candidate can lead to massive gains if it reaches commercialization. However, the path to success is fraught with challenges, including rigorous testing and regulatory approvals. Understanding the inherent risks and rewards is crucial for anyone considering trading in this sector.
Biotech stocks can be highly rewarding, but they’re not the only option in the healthcare sector. Diversifying your investments can help you manage risk better. Healthcare stocks offer a broader range of opportunities and can be a great addition to your portfolio. For a deeper look into the potential of healthcare stocks, check out my watchlist on Healthcare Stocks.
How Do Biotech Penny Stocks Work?
Biotech penny stocks operate in the high-stakes arena of medical research and development. These stocks represent companies that are often in the process of testing new drugs or medical devices. The success or failure of these tests can dramatically affect the stock price. Positive results in clinical trials can lead to significant price spikes, while negative outcomes can cause sharp declines.
Investors and traders keep a close eye on indicators such as the company’s pipeline of product candidates, ongoing clinical trials, and partnerships with larger pharmaceutical or healthcare companies. For instance, a biotech firm collaborating with a giant like Pfizer on an mRNA-based treatment can see its stock price soar on positive news. My experience has shown that paying attention to these indicators is crucial for making informed trading decisions.
The volatility in biotech penny stocks is both a challenge and an opportunity. While the potential for large intraday gains is attractive, the risk of substantial losses is equally high. This is why I emphasize trading over long-term investing in penny stocks. The goal is to capitalize on short-term price movements driven by news and developments, rather than holding the stock indefinitely.
Biotech Investing for Beginners
For beginners looking to get into biotech investing, it’s essential to understand the industry’s unique dynamics. Start by researching companies with a clear focus on promising areas like oncology or treatments for diseases with significant unmet needs. Look for firms with strong pipelines and credible partnerships. For example, companies developing novel therapies for Alzheimer’s disease or collaborating with established pharmaceutical giants can be promising.
Beginners should also pay attention to analysts’ ratings and price targets. A buy rating from a reputable analyst can indicate confidence in a company’s growth potential. However, remember that these ratings are not guarantees. My years of teaching and trading have taught me the importance of using these tools as part of a broader strategy rather than relying on them exclusively.
While biotech stocks can be tempting for their potential high returns, they are not without risks. It’s important to stay updated on industry news, clinical trial results, and regulatory changes. For beginners, starting with smaller positions and gradually increasing as you gain experience can be a prudent approach. Always prioritize risk management and stay informed to navigate the complexities of biotech penny stocks effectively.
Risks of Investing in Biotech Penny Stocks
First of all — never invest in any penny stock. You only want to be trading these stocks… here’s why…
You’ll need to understand the ins and outs of penny stocks if you’re gonna survive in this niche. Penny stocks can offer significant growth potential at a lower cost — but you NEED to know the warning signs that tell you when things are about to go sideways.
Check out my overall Penny Stocks Watchist for a better idea of what I look for — and the dangers I guard against…
Higher Failure Rates
Biotech companies often have higher failure rates, especially when it comes to clinical trials. If a drug doesn’t get the approval or shows poor trial results, share prices can tank.
Regulatory Uncertainties
The biotech sector is heavily regulated. Companies need to go through multiple phases of clinical trials before they can bring a product to market. Any hiccup in this process can be disastrous for the stock price.
Limited Financial Resources
Many biotech penny stocks have limited financial resources. They’re often dependent on investor funding, and if the money dries up, the company will dilute its shares.
Top Tips for Buying Biotech Penny Stocks
When it comes to biotech penny stocks, you’ve got to be on your A-game. You need to analyze everything from clinical trial results to market cap.
Here are my top tips beyond the numbers and data!
- People make a company go. Understand the management team behind the company and their track record.
- You need a reliable trading platform that gives you quick access to the market. Your account should offer robust securities to protect your investment. And speaking of investments, always consider the value of the stock against its potential growth and revenue. Don’t just listen to brokers who might be pushing their own picks.
- Patients are the end-users of biotech products, so pay attention to patient response during clinical trials. This could be a good indicator of the stock’s future value. But remember, you’re not a medical expert. Always read the disclaimer before making any moves.
- In the biotech world, every “cell” counts, literally. Sales growth can be a good indicator, but it’s not everything. Look at the overall revenue and how it’s trending.
- Just like in any penny stock, don’t underestimate the power of a ticker symbol. Traders
- And of course — do your due diligence and make informed decisions!
Research the Company
Before you invest in biotech penny stocks, research the pharmaceutical companies behind the stocks. Look at their pipeline, check their financials, and read up on their management team. The more information you have, the better your chances of making a profitable trade.
Understand How You Are Going to Trade
Are you looking for quick gains, or are you in it for the long haul? Understanding your trading strategy will help you pick the right stocks.
Look into the Biotech Industry
Understanding the biotech industry as a whole will give you a better perspective on individual stocks. Keep an eye on growth trends, breakthrough therapies on “big-name” diseases like Alzheimer’s disease, and upcoming IPOs.
Never Believe in OTC/Pink Sheet-Listed Penny Stocks
Over-the-counter (OTC) and pink sheet stocks are not subject to the same regulatory oversight as stocks listed on major exchanges. They’re riskier and more susceptible to manipulation.
Trade Promotional Pumps Carefully
Be wary of stocks that are being heavily promoted in the media or online forums. These are often pump-and-dump schemes designed to inflate the stock price.
Only Trade Penny Stocks with Volume
Look for stocks with high trading volume. Low volume stocks are more susceptible to price manipulation.
Understand the Hit and Run Approach
In the world of biotech penny stocks, it’s often better to be a trader than an investor. Take your profits and move on to the next opportunity.
How To Make Money in Biotech Stocks
The key to making money in biotech stocks is research, timing, and a solid trading plan. I’ve been trading these stocks for years, and while they’re risky, they offer some of the best opportunities for high returns. But remember, always trade with money you can afford to lose.
Once you’ve gained some experience, you might start thinking about day trading as more than just a hobby. It’s a significant step, requiring a different level of commitment and strategy. If you’re considering this path, you’ll need to understand the nuances that come with making day trading your primary income source. For a comprehensive guide on how to make this transition, here’s how to day trade for a living.
Have you traded biotech penny stocks? Write “I always trade with a plan” in the comments!
FAQs
How Do I Invest in Biotech Stocks?
Investing in biotech stocks starts with research. Look for companies with promising pipelines, strong financials, and experienced management teams.
Why Do Investors Buy Penny Stocks?
Investors buy penny stocks for the potential of high returns. These low-priced stocks offer an opportunity for significant profits, but they come with higher risks.
How To Avoid Penny Stock Risk?
The best way to avoid penny stock risk is through research and due diligence. Understand the company you’re investing in, the risks involved, and have a clear trading strategy.