Three Biotech Penny Stocks Under $1 Worth Watching: Clinical Pipeline Insights

Biotech penny stocks under $1 have historically attracted investors seeking significant upside potential, though they come with substantial risks. The U.S. Securities and Exchange Commission warns that these securities often trade infrequently, making them difficult to price accurately and challenging to exit. Despite these cautions, certain companies in the sector have demonstrated genuine clinical progress that merit attention from risk-aware investors.

This analysis examines three biotech companies that have established meaningful pipelines in oncology and rare diseases, each trading at sub-dollar valuations at various points. The following represents current and historical clinical developments rather than investment recommendations.

Atossa Therapeutics (ATOS) — Advancing Breast Cancer Treatment Options

Atossa Therapeutics represents one of the more established efforts in hormone-receptor positive (ER+) breast cancer treatment. At certain price points near 75 cents, the stock showed technical support around the 65-cent level, with potential resistance near 83 cents.

The company’s most significant development involves the EVANGELINE study, a Phase 2 clinical trial examining Z-Endoxifen combined with Exemestane and Goserelin as neoadjuvant therapy for premenopausal women with ER+/HER2- breast cancer. This particular indication addresses a notable gap: while several neoadjuvant options exist for estrogen-receptor negative cancers, fewer choices are available for ER+ patients—a population comprising approximately 78% of all breast cancer diagnoses.

The trial planned to enroll roughly 175 patients across approximately 25 U.S. sites. Initial patient dosing represented a milestone for the program, and subsequent interim data releases could influence investor interest. The underlying clinical rationale—targeting a large patient population with limited current therapeutic options—provides a clear medical justification for the research program.

BioLine RX (BLRX) — Multiple Myeloma and Gene Therapy Expansion

BioLine RX demonstrated notable price movement, ranging from approximately 58 cents to 96 cents over measured periods. The company’s financial position appeared stable, with reported cash reserves of $51.1 million allocated to support ongoing operations.

The company’s lead asset, APHEXDA (motixafortide), received FDA acceptance of its new drug application for stem cell mobilization in autologous transplantation for multiple myeloma patients, with a previously scheduled PDUFA target date. Beyond this indication, BioLine RX expanded its clinical pipeline through a research collaboration with Washington University School of Medicine. This partnership focused on evaluating motixafortide as both a standalone therapy and in combination with natalizumab for CD34+ hematopoietic stem cell mobilization in patients with sickle cell disease requiring gene therapy interventions.

The dual-indication approach—addressing both established hematologic cancers and emerging genetic disease applications—reflects a strategy to maximize the commercial potential of a single therapeutic mechanism. Such pipeline expansion is common among biotech companies seeking to maximize asset value.

Corvus Pharmaceuticals (CRVS) — Novel Immunotherapy for T-Cell Lymphoma

Corvus Pharmaceuticals, with a reported market capitalization of approximately $46.3 million, showed price movement from around 60 cents to $1 following presentation of clinical data. The company’s lead candidate, CPI-818, represents an investigational ITK inhibitor designed to address T-cell lymphoma, a hematologic malignancy with significant unmet treatment needs.

According to researchers from The Ohio State University Comprehensive Cancer Center involved in the Phase 1/1b trial, CPI-818 employs a novel mechanism that stimulates normal T-cell infiltration and tumor destruction. Clinical observations suggested that peripheral blood lymphocyte counts might predict which patients would most benefit from the therapy. T-cell lymphoma remains a challenging disease category with limited current therapeutic options, establishing clear clinical rationale for continued development.

Risk Considerations in Biotech Penny Stock Investing

Biotech penny stocks under $1 present several structural challenges beyond standard equity risk. Limited trading volume creates liquidity constraints that can prevent timely exit during adverse price movements. Accurate valuation becomes problematic when quotations are sparse or outdated. Investors should recognize that loss of the entire investment remains a realistic possibility with these securities.

The regulatory pathway for biotech assets introduces binary risks: a single negative clinical trial result, FDA rejection, or adverse safety signal can substantially impair stock valuations. Conversely, positive regulatory developments can generate rapid appreciation, creating the asymmetric risk-reward profile that attracts speculative capital.

Final Perspective

Biotech penny stocks under $1 should comprise only a small portion of a diversified portfolio, with capital allocated strictly representing money investors can afford to lose completely. The three companies examined above—Atossa, BioLine RX, and Corvus—each demonstrated clinical progress and clear therapeutic rationales, yet none represented reduced-risk investments. Monitoring continued clinical trial progress and regulatory milestones remains essential for anyone tracking these companies.