Top Biotech Penny Stocks to Watch Out for in October 2024

 

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.

5 Biotech Penny Stocks to Watch in October 2024

My top 5 biotech penny stocks to watch for October 2024 are:

• NASDAQ: SMMT — Summit Therapeutics Inc. — The Large-Cap Biotech Stock IRIS Swing Trade
• NASDAQ: INBS — Intelligent Bio Solutions Inc — The Opiate Screening Test Stock Reporting Higher Revenue
• NASDAQ: INM — InMed Pharmaceuticals Inc — The After-Hours Spiker Biotech Stock Morning Fader
• NASDAQ: BCTX — Briacell Therapeutics Corp — The Positive Study Results Biotech Stock That Got Ruined By An Offering
• NASDAQ: NVAX — Novavax Inc. — The Speculative Vaccine Stock With FDA News

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 Summit Therapeutics Inc. (NASDAQ: SMMT) 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 Summit Therapeutics Inc. (NASDAQ: SMMT), Intelligent Bio Solutions Inc (NASDAQ: INBS), and InMed Pharmaceuticals Inc (NASDAQ: INM).

• 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 October — rated on chart pattern, price action history, and news — include the following:

Stock Ticker	Company	Performance (YTD)
NASDAQ: SMMT	Summit Therapeutics Inc	+ 1,156.06%
NASDAQ: INBS	Intelligent Bio Solutions Inc	– 48.88%
NASDAQ: INM	InMed Pharmaceuticals Inc	– 31.54%
NASDAQ: BCTX	Briacell Therapeutics Corp	– 89.16%
NASDAQ: NVAX	Novavax Inc	+ 161.44%

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.

Now, let’s get to the top biotech penny stocks to watch this month!

Best Biotech Penny Stocks for October 2024

These are the top 5 biotech penny stocks to watch in October 2024…

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!

These are the top 5 biotech penny stocks to watch in September 2024 …

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: Summit Therapeutics Inc. (NASDAQ: SMMT) — The Large-Cap Biotech Stock IRIS Swing Trade

My first biotech penny stock pick is Summit Therapeutics Inc. (NASDAQ: SMMT).

Ladies and gentlemen, we’re starting this watchlist STRONG with a huge biotech runner.

On September 9, the market learned that SMMT’s Ivonescimab Monotherapy reduced the risk of progression or death in lung-cancer patients by 49% when compared to the leading treatment, Keytruda.

This would be big news for ANY biotech stock. But SMMT also has a strong history of spiking that showcases the stock’s past strength.

In the chart below you can see the 380%* spike in May of this year and the 130%* spike caused by the most recent lung-cancer news. Every candle represents one trading day:

It’s really exciting to see a larger stock like this make volatile moves.

It means there are opportunities for traders like us to profit … 

This stock is larger than some of the small-cap runners that we talk about. So we have to use a swing-trading strategy.

I used to solely swing trade mid-cap stocks before Sykes showed me the profitable side of penny stocks … So, this move on SMMT is my bread and butter!

Traders in our community can use the AI swing-trading bot, IRIS, that I helped program to build smart positions on this runner.

There’s a lot of upward momentum, but the intraday volatility is still dangerous, that’s where Iris can help!

I taught it how to identify areas of support and resistance that allow us to buy shares with mitigated risk levels.

Take a look at the intraday price action on SMMT below, every candle represents one minute:

Don’t get lost in this volatility … 

>> Use IRIS to build smart positions <<

#2: Intelligent Bio Solutions Inc (NASDAQ: INBS) — The Opiate Screening Test Stock Reporting Higher Revenue

My second biotech penny stock pick is Intelligent Bio Solutions Inc (NASDAQ: INBS).

This stock has been building momentum all September … From a news standpoint.

• On September 3, the company announced 118% increase in the total number of employees across its customer base. When you sell to businesses that are doing well it’s a good sign.
• On September 5, it announced a fluffed up report that stated progress toward a plan required for an FDA submission.
• And on September 9, the market learned that INBS calculated its year-over-year revenue growth at 148%.

In September, this stock has already spiked 130%*. And the most recent revenue announcement is one of the most exciting catalysts.

Thus far, the revenue numbers are “preliminary”, A.K.A. unaudited.

INBS is showing volatility like this before the numbers are even confirmed, lol. That’s what we love about penny-stock volatility.

Share prices are consolidating around $2 right now. And the breakout level is at $3.

Play this volatility carefully! Use the patterns from our e-book.

#3: InMed Pharmaceuticals Inc (NASDAQ: INM) — The After-Hours Spiker Biotech Stock Morning Fader

My third biotech penny stock pick is InMed Pharmaceuticals Inc (NASDAQ: INM).

Biotech stocks are HOT right now.

But it’s not all fun and games. Some of these spikes will fail. That’s always important to keep in mind.

And it’s a perfect example of the importance behind StocksToTrade tools like Oracle!

Every morning, Oracle scans the market for the hottest stocks. It identifies key support and resistance levels, and gives traders potential entries and exits.

(This is different from IRIS. IRIS is a swing-trading tool. Oracle is more interested in small-cap volatility.)

Every trader needs a plan! Random positions will get you random results.

We’re using INM to illustrate this point …

On September 10 during the after hours period, INM spiked 65%. It’s a low float biotech stock that fits our framework, and a lot of traders were excited to build a position the next morning.

Oracle gave us a solid trade setup. But that morning, the stock never matched our trade plan. 

Instead, it dove back to where it started. Take a look at the chart below, every candle represents one trading minute:

Anyone using Oracle would have been safe from that morning fade.

Now, INM is still a low-float biotech stock in a volatile market … It’s only a matter of time until it spikes again. 

For example, the price spiked 450%* earlier this year, in August … 

Learn how to use Oracle to build trade plans for volatile penny stocks like INM.

#4: Briacell Therapeutics Corp (NASDAQ: BCTX) — The Positive Study Results Biotech Stock That Got Ruined By An Offering

My fourth biotech penny stock pick is Briacell Therapeutics Corp (NASDAQ: BCTX).

On September 11, during premarket hours, this company announced positive survival data from its phase 2 trial of a late-stage breast cancer treatment.

The price spiked 230%* before the market even opened for regular hours.

But that day, the stock announced an $8.5 million offering and the price tanked. Take a look at the chart below, every candle represents one trading minute:

This is a good lesson … 

Sometimes, sketchy biotech companies will hold offerings as cash grabs. It floods the market with shares and dilutes the price.

That’s why it’s important to day trade these penny-stock spikes. We don’t usually hold shares overnight.

Plus, it’s SO important to have real time data.

You can see on the chart how quickly the price reacted to the offering news.

Use StocksToTrade to ensure that you have up to date news AND up to date price data.

#5: Novavax Inc. (NASDAQ: NVAX) — The Speculative Vaccine Stock With FDA News

My fifth biotech penny stock pick is Novavax Inc. (NASDAQ: NVAX).

We’ve seen a lot of volatility in recent years from biotech stocks like NVAX.

Ever since COVID-19 for sure. But even before that.

Biotechs are naturally volatile because of the nature of their business …

There’s a ton of money flowing into these companies for research. And any bullish update carries the hype for a new cure.

Most recently, we saw a lot of biotech volatility as a direct result of the Mpox (formerly known as monkeypox) outbreak. And the global health emergency declaration from the World Health Organization in August.

NVAX experienced some volatility around that time. And earlier, between May and June the stock spiked 430%*! Take a look at the chart below for NVAX’s past volatility. Every candle represents one trading day:

Most recently … 

The FDA announced emergency use authorization for NVAX’s updated COVID vaccine, NVX-CoV2705. We learned about the authorization on September 2.

FDA authorizations are great catalysts for biotech companies, as the FDA is essentially the supreme authority in the biotech sector.

Plus, students are going back to school. Soon the weeks will grow colder and the risk of catching an illness will increase

That puts more emphasis on sicknesses like COVID and potential vaccines.

NVAX is a former spiker, and the FDA news perfectly positions it to capitalize in September.

*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.

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.