Although Wall Street and the mass media are obsessed with the technology sector, the biggest profits are in the biotechnology industry.
Over the last 12 months, the S&P Biotechnology Select Industry Index (SPSIBI) climbed an impressive 41.31%.
Meanwhile, over the same period, the S&P 500 Technology Sector SPDR ETF (NYSE: XLK) has returned 34.28%.
That's why today we'll reveal our three best biotech penny stocks to buy.
All three have upcoming February clinical trial results that could send their share prices soaring 300%-plus. One even has profit potential of more than 500%.
If a biotech stock's clinical trial results are positive, or receives a nod of approval from the FDA, then the stock can soar. For example, last year Dynavax Technologies Corp. (Nasdaq: DVAX) shares more than quadrupled between May 31 and Oct. 5, when it climbed 337.6%, from $5.50 to $24.07.
This jump came in July 2017 after the company reported that an FDA advisory committee voted in favor of the company's lead product candidate, Heplisav-B – an experimental hepatitis B vaccine.
While these stocks have huge profit potentials, you must keep in mind that penny stocks are very speculative investments. They often see big pullbacks after making large gains.
That's why Money Morning recommends that no more than 2% of your stock portfolio consist of such risky investments.
But if you're willing to take the risk, some of these stocks could bring you profits of over 300% next year.
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Now, the first biotech penny stock has its sights set on treating a large demographic of men over the age of 40 …
Biotech Penny Stocks to Buy, No. 3: Apricus Biosciences Inc.
California-based Apricus Biosciences Inc. (Nasdaq: APRI) develops treatments in the areas of urology and rheumatology. Its lead product, Vitaros, is a topically applied cream for the treatment of erectile dysfunction (ED).
ED affects 52% of men and 40% of men above the age of 40, according to the Massachusetts Male Aging Study.
Currently trading at $2.35, APRI shares are covered by two firms, with an average price target of $3.50 and a high target of $4.50. Those targets represent upside of 49% and 91.5%, respectively.
Although APRI shares don't currently have 500%-plus potential price target, the fact that ED eventually affects the majority of males in the United States means that this drug will be in high demand if approved.
The company submitted its New Drug Application (NDA) to the FDA back in August, with a PDUFA date of Feb. 17.
A PDUFA date is the FDA's deadline to approve or reject an NDA, typically six months after the NDA.
Up next is a stock whose lead drug candidate is already approved in Europe and another stock with 500%-plus potential …