10 Biotech Penny Stocks to Watch in July 2017

These top-performing biotech penny stocks to watch in July have seen share price gains as high as 56.6% in the past month.

After our list of the 10 top gainers to watch in July, we'll share a biotech profit play that has the potential to double your money this year.

Here are the top performing biotech penny stocks of the past 30 days...

Company June Performance Price
Fortress Biotech Inc. (Nasdaq: FBIO) 27.2% $4.86
NovaBay Pharmaceuticals Inc. (NYSEMKT: NBY) 29.1% $3.75
Kadmon Holdings Inc. (NYSE: KDMN) 31.5% $3.54
OvaScience Inc. (Nasdaq: OVAS) 31.8% $1.70
CytRx Corp. (Nasdaq: CYTR) 33.4% $0.67
BioDelivery Sciences International Inc. (Nasdaq: BDSI) 34.1% $2.97
Flex Pharma Inc. (Nasdaq: FLKS) 34.4% $4.70
22nd Century Group Inc. (NYSE: XXII) 35.3% $1.85
InVivo Therapeutics Holdings Corp. (Nasdaq: NVIV) 35.7% $2.65
AVEO Pharmaceuticals Inc. (Nasdaq: AVEO) 56.6% $1.94

Because of their low price (under $5), penny stocks are highly volatile. So while these gains are tempting, they may not last. That's why we at Money Morning don't recommend penny stocks for most investors.

Additionally, penny stocks also typically have low trading volumes. That makes it harder to get in and out of a stock at the price you are targeting, increasing your risk.

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The biotech stock we are recommending today trades for $13, above the penny stock cutoff. This stock is also much more liquid than some of the shares listed above. The stock has an average trading volume of almost 700,000 shares a day. For comparison, the fourth-best performer last month, FLKS, has an average trading volume of just 84,000 shares per day.

And it has a profit potential of nearly 100% in the next 12 months.

Plus, you have a chance to maximize your profits if you get in before Aug. 1, because the company has a new drug that is set to cash in on two major current trends...

Get into This Biotech Stock by Aug. 1 to Maximize Profits

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So far this year, Insys Therapeutics Inc. (Nasdaq: INSY) has returned 44.2% compared to a return of 8.4% for the Dow.

And we expect this market-beating streak to continue. The company's new drug, Syndros, will hit the market in August to treat chemotherapy-induced nausea and vomiting. But the drug could have other uses. Dronabinol, the active ingredient in Syndros, has also been proven effective in treating pain, according to Money Morning Executive Editor Bill Patalon.

The pain treatment market is huge. Currently, the global pain drugs market is about $68 billion, according to Visiongain. That number is expected to grow to $83 billion by 2024, according to Transparency Market Research.

And Syndros is at the intersection of two new trends: the push for non-opioid pain killers and medical marijuana.

According to Patalon, doctors are looking for non-opioid pain killers to solve chronic pain and reduce overdose deaths. In 2016, 59,000 people died from opioid overdose across the country.

"Insys has big upside because it's trying (and, so far, succeeding with flying colors) to work at the 'convergence' of those two powerful trends," said Patalon.

Analysts agree. The consensus one-year target price for Insys is $16.40, for a gain of 24% over its current price of $13.22 per share. But some analysts think the stock could go as high as $26 within the next year. That would be a gain of just under 100%.

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