Biotech stocks are some of my favorite stocks to watch and invest in for a couple of reasons. First, they give you an opportunity to earn a meaningful return while knowing that your investment can make a difference in the lives of patients around the world. Moreover, these stocks are known to experience a large number of catalysts having to do with clinical studies, results from those studies, communication with the FDA, and more. So they can be pretty active. 

Biotech penny stocks trade for under $5 per share and represent biotech companies. Though these can be risky, they can also produce meaningful returns, especially when the companies these stocks represent release positive data or achieve FDA approval. Which biotech penny stocks should you be watching? Here are a few trending options. 

Key Points

• Ocean Biomedical is a preclinical-stage biotech company that could be entering the clinic soon. That could send the stock up. 
• Leap Therapeutics has several ongoing clinical trials and preclinical programs, making it a strong choice for those looking for stocks with multiple upcoming catalysts. 
• Vivos Therapeutics’ recently approved sleep apnea device could become the standard of care in the long run. 
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Ocean Biomedical Could Enter the Clinic Soon

When you invest in biotech penny stocks, you’ll typically invest in stocks in one of three categories. Those include preclinical, clinical, and commercial-phase companies. Ocean Biomedical (Nasdaq: OCEA) is in the preclinical stages, but that may change soon. 

The company’s lead development program, OCX-253, is designed to target non-small cell lung cancer (NSCLC), and the company says it’s moving toward Phase 1 clinical trials. That’s important for investors because it means that several catalysts are likely ahead. The stock could climb when the company announces the beginning of enrollment into the trial, when enrollment is complete, when the trial commences, and at each data release. 

Moreover, Ocean Biomedical’s OCX-253 is showing promise in other indications. The company believes that it may be effective in the treatment of glioblastoma multiforme and metabolic disorders. 

Leap Therapeutics Is Getting Closer To Commercialization

Leap Therapeutics (Nasdaq: LPTX) is a clinical-stage oncology company. That means the company is developing therapeutics to help treat cancer and even cure it in some cases. And unlike Ocean Biomedical, the company has advanced well beyond the pre-clinical stages. In fact, its pipeline includes two Phase 2 clinical programs, one Phase 1 clinical program, and two preclinical programs. 

The company’s flagship drug candidate is the Anti-DKK1 antibody. This candidate is the subject of three of the company’s four clinical programs. So what’s special about this therapeutic candidate? 

Tumors with high levels of the protein known as DKK1 are associated with poor survival rates. Leap Therapeutics believes that if you can reduce or eliminate this protein in cancer tumors, you may be able to improve outcomes for patients with various life-threatening cancers. The clinical programs assessing this candidate are focused on a few different indications, including gastric, colorectal, and endometrial cancers. And there’s a high probability that if the drug proves effective, the company will work to expand this list of indications. 

It’s also worth mentioning that the company has three other assets that it believes will improve outcomes for cancer patients. And with catalysts likely ahead from all of these programs, this is a stock that’s well worth consideration. 

Vivos Therapeutics Could See Significant Sales

Moving up through the phases of biotechnology businesses brings us to Vivos Therapeutics (Nasdaq: VVOS). Unlike the two companies mentioned above, Vivos Therapeutics is focused on the development of state-of-the-art medical devices. Not to mention, the company isn’t in preclinical or clinical stages. Thanks to a 510(k) clearance it received from the FDA in November of last year, Vivos Therapeutics is now in the early stages of commercialization. 

So what does the company sell?

Vivos Therapeutics developed Vivos, the first FDA-cleared oral device for the treatment of obstructive sleep apnea (OSA). The device is custom-fitted by a dentist and designed to help patients with sleep apnea get the sleep they need while breathing properly. 

This could be a big hit. All sleep apnea devices that were approved before Vivos require patients to connect themselves to a central machine using hoses and face masks. Unfortunately, this can be very uncomfortable, leading to many patients not following their treatment plans properly. But Vivos is likely a more comfortable option. And if patients prove to prefer it over the current standard of care, it could become the standard itself. 

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