Health and Healthcare

5 Red-Hot Biotech and Medtech Stocks Under $10 With Massive Upside Potential

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While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. At those steep prices, it’s pretty hard to get any decent share count leverage.

Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.

We screened our 24/7 Wall St. research database looking for biotech and medtech stocks that are likely to survive the current troubles and could very well offer patient investors some huge returns over the next year or so. Patient investors that did that in 2008 and 2009 absolutely killed it over the next few years.

While all five stocks are rated Buy at top Wall Street firms, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Aptinyx

This clinical-stage biopharmaceutical company is working on a treatment for post-traumatic stress disorder (PTSD), which could be a blockbuster. Aptinyx Inc. (NASDAQ: APTX) engages in the discovery, development and commercialization of transformative therapies for disorders of the brain and nervous system. Its product includes NYX-2925, NYX-783, NYX-458 and the AGN-241751 program.

The company recently announced it has completed enrollment in Phase 2 exploratory study of NYX-783 in PTSD and data readout is expected in the fourth quarter. Aptinyx also recently announced that recommencement of Phase 2 studies of NYX-2925 in chronic pain is expected soon.

In addition, in late June it was announced the company was being added to the Russell 2000 small-cap index.

The analysts at Truist Securities have a giant $15 price target, while the Wall Street consensus figure is $10.67. The shares have traded around the $4 so far this month.

Cymabay Therapeutics

Shares of this clinical-stage biopharmaceutical company recently had a parabolic move higher but have pulled back some. Cymabay Therapeutics Inc. (NASDAQ: CBAY) is focused on developing and providing access to therapies for patients with liver and other chronic diseases with high unmet medical needs.

The company’s products include MBX-8025, which aims to treat lipid and liver diseases, and arhalofenate, intended to reduce gout flares and serum uric acid.

CymaBay recently announced solid topline results from Enhance, a placebo-controlled, randomized, Phase 3 study evaluating the safety and efficacy of seladelpar for the treatment of primary biliary cholangitis. The study demonstrated seladelpar to be efficacious, safe and well-tolerated.

Stifel has set a $13 price target. The $12.20 Wall Street consensus target is also more than double the recent $6 level.


Evolus

The shares of Evolus Inc. (NASDAQ: EOLS) gapped down in July but looks to have put in a solid base. This performance beauty company with a customer-centric approach is focused on delivering breakthrough products.

In 2019, the U.S. Food and Drug Administration (FDA) approved Jeuveau, the first and only neurotoxin dedicated exclusively to aesthetics and manufactured in a state-of-the-art facility using Hi-Pure technology. Jeuveau is powered by Evolus’s unique technology platform and is designed to transform the aesthetic market by eliminating the friction points existing for customers today.

The company noted recently it has increased its purchasing account base, and it grew reorder rates and introduced Evolus Rewards, a new consumer loyalty program. Evolus also launched a stimulus program to support customers as they reopened their practices. Management feels these programs drove its strong second-quarter performance and will continue to be fundamental drivers of growth in the back half of the year.

The $13 Stifel price objective compares with a $12.78 consensus target price. The shares traded up to right at the $4 level recently.

iBio

The shares of this micro-cap biotechnology company got tagged recently after a big run and are offering aggressive inventors an interesting entry point. iBio Inc. (NYSE: IBIO) engages in the development and manufacture of biotherapeutics. Its pipeline includes treatments for idiopathic pulmonary fibrosis, systemic sclerosis and scleroderma.

This past week, the company provided an update on one of its proprietary vaccine candidates being designed to prevent infection from the SARS-CoV-2 virus. iBio is investigating an array of adjuvants in combination with iBio’s proprietary lichenase carrier molecule fused to a coronavirus subunit protein with the goal of producing a safe and effective vaccine for COVID-19 disease, and especially one for its most vulnerable populations, including the elderly.

The Alliance Global price target is $6.65, which is less than a posted consensus target of $8. Shares have traded below $3 apiece in recent days.

Sientra

This stock has been blitzed over the past year and offers aggressive accounts a timely entry point. Sientra Inc. (NASDAQ: SIEN) as a medical aesthetics company that engages in developing and commercializing plastic surgery implantable devices.

The Breast Products segment focuses on sales of its breast implants, tissue expanders and scar management products under the brands Sientra, AlloX2, Dermaspan, Softspan and BioCorneum. The miraDry segment focuses on sales of the miraDry System, consisting of a console and a handheld device that uses consumable single-use bioTips.

The analysts at Stifel have a $9 price target. The consensus figure is $6.86, and shares traded above the $4 level on Friday.


These are five stocks for very aggressive accounts that look to get share count leverage on companies that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.

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