12 Best Biotech Penny Stocks to Invest In

Usman Kabir
9 min read

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In this article, we discuss the 12 best biotech penny stocks to invest in. If you want to skip our detailed analysis of these stocks, go directly to 5 Best Biotech Penny Stocks to Invest In.

The past few years have been a topsy-turvy ride for the biotech sector. There was a massive increase in investments in biotech firms as vaccine development for the COVID-19 pandemic became a primary concern around the globe. Following the success of these vaccines, there was a normalization period for the biotech market as macro factors, combined with waning interest in coronavirus vaccines, as well as fewer drug approvals by the drug authorities hit revenues. In 2023, the sector rebounded, jumping back to pre-pandemic levels of growth. 

As the market dynamics improve, investments are surging, IPOs picking up pace again, and companies continue to innovate, there is increased optimism around the biotech world in 2024. One indication of this optimism is the performance of biotech giants like GlaxoSmithKline plc (NYSE:GSK), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV) on the stock market. The shares of these firms are up 12%, 29%, and 11% year-to-date respectively. There is an uptick in shareholder activism and mergers and acquisitions activity too. 

Investors eager to ride the optimism in the biotech sector this year should carefully look at the growth plans of big biotech companies that are spending billions in research and development to stay ahead of the curve. The comments of Dave Ricks, the CEO of Eli Lilly and Company (NYSE:LLY), can provide some context into this. During the fourth quarter earnings call at the beginning of February, Ricks highlighted the efforts of his company towards increasing the resilience of drug manufacturing and growing top lines through key partnerships. 

“In terms of external innovation, in 2023, we continued to complement our pipeline through acquisitions and collaborations. These transactions included the acquisition of DICE Therapeutics, POINT Biopharma, Versanis Bio, Emergence Therapeutics, Mablink Biosciences, Immunitrack, as well as Sigilon Therapeutics. We announced several significant investments in manufacturing, including plans to expand capacity at the company's Research Triangle Park facility and the two manufacturing sites within the LEAP Innovation Park in Boone County, Indiana. Most recently, we announced plans to construct a new high-tech manufacturing site in Germany. This facility will further expand the company's global injectable product and device manufacturing network, including for our diabetes and obesity portfolio. Most importantly, this past year, we brought innovative new medicines to patients. In 2023, we received regulatory approvals for Zepbound, Jaypirca, Omvoh, and Ebglyss in the U.S. and in the EU, rather, and an expanded label for Verzenio, and two new indications for Jardiance.

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