By definition, Pharmaceutical Penny Stocks are the stocks issued by small-scale, early-stage companies that thoroughly research, develop and manufacture new drugs through the synthesis of chemicals or plants.
These are low scale companies which offer penny stocks to the investors so that they can grow and increase their profits over a certain period of time. Their stocks are quite cheap and seldom meet the listing standards that are set out by the major market exchanges.
Though these investments are highly speculative but can bring huge amounts of profit if turn out to be successful. The reason for this is that the pharmaceutical industry is growing at a very fast pace and investment in these firms can turn out to be very promising because the demand for medicine is increasing day by day.
What should one look out for before investing in Pharmaceutical Penny Stocks?
- The financial stability and background of the company in the field of medicine. Better the financial stability of the company, higher will be the chances of earning a profit.
- Their partnership with other companies, like some companies are partners with the leading pharmaceutical firms and therefore, the probability of their growth and profits for the investors turn out to be high.
- The kind of medicines they make, the types of diseases their medicines guarantee to fight and treat. For example, the firms making cancer treatment or other chronic illnesses related medicines with a strong financial background have a higher tendency to grow and provide gains to their investors who are trading their penny stocks.
Some of the Pharmaceutical Penny Stock companies worth investing are:
This company is in the field of developing cancer-treating drugs. With a good research history, testing and collaborations with other pharmaceutical firms show a greater tendency to grow within a short span of time. As and when the company will grow, the persons who have invested in the penny stocks of this company will greatly benefit from the profits. The reason why this company is trustworthy of being invested in is that it already has one of its drugs FDA approved.
Even though the stocks of this company are highly volatile but that may prove to be an investment of profit for the investor because the company is growing quite fast.
Novavax is a vaccine developing company which has developed vaccines for the prevention and treatment of Ebola and Zika viruses. Although the company has suffered setbacks owing to the failure of their Influenza prevention vaccines but as of now, the company is growing greatly as they make vaccines for all age groups ranging from infancy to adulthood to old age.
Due to these reasons, the investments in this company can turn out to be a game of profit for the investors. Despite the initial hiccups, the company is growing well and their penny stocks are a good choice for investment.
Some other companies which are also showing swift growth and can provide massive profits to their penny stock investors are
- Prana Biotechnology
- Orexigen Therapeutics
- IsoRay Inc.
- Catalyst Pharmaceutical Partners
- Cyclacel Pharmaceuticals Inc.