Healthcare and biotech stocks were great recession-proof plays in 2009, and still remain strong investment opportunities in 2011. That’s because even though consumer spending can get eroded by expensive gas prices or unemployment fears, Americans will never stop going to the doctor or paying for life-saving drugs and treatment.
That’s why I frequently look at cheap, small-cap investment opportunities in the healthcare, pharmaceutical and biotech sectors. And I’ve got 10 great health care penny stocks for you to consider buying today.
Now, the names on this healthcare and biotech penny stocks list aren’t true “penny stocks.” That’s because micro-cap pink sheet or OTC picks are way too risky, and even though they cost only a few cents per share they can cost you a fortune by wiping out your nest egg overnight. This list of 10 cheap investments are a little bigger, and therefore a little safer, but they still have the ability to continue delivering spectacular gains.
Here are the 10 healthcare picks I suggest you investigate as investment opportunities:
Dynavax Technologies Corp: Biopharmaceutical company Dynavax Technologies Corp (NASDAQ: DVAX) is known for developing products to prevent and treat infectious diseases, asthma, and inflammatory and autoimmune diseases. In the last six months, this penny stock is up +35%, compared to a gain of +13% for the Dow Jones Industrial Average. Buy this penny stock within its 52-week range of $1.58 to $3.59.
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AVI BioPharma Inc: Specializing in ribonucleic acid (RNA) based drugs, AVI BioPharma Inc. (NASDAQ: AVII) is about flat in the last 30 days but has almost doubled the market with +23% gains in the last 12 months. Shareholders are also pointing towards the 1,086% quarterly revenue growth from AVII’s last income statement. There may be even better times ahead for AVII in 2011.
Repligen Corp: Another biopharmaceutical company worth looking at is Repligen Corp. (NASDAQ: RGEN), because of its 7% rise in the last two months and strong outlook. Potential investors are also noting the penny stock’s quarterly revenue growth of 26% year-over-year.
Opko Health Inc: Vaccine and diagnostic technology producer Opko Health Inc. (AMEX: OPK) has shown impressive gains of +70% in the last year. Another statistic worth noting is OPK’s quarterly revenue growth of 99%, year-over-year.
SuperGen Inc: Known for treating patients with cancer, pharmaceutical company SuperGen Inc. (NASDAQ: SUPG) has watched its stock value increase 7% in the last two months. Last quarter, this penny stock also posted a net profit margin +32%. Buy near its 52-week high of $3.26.
Hansen Medical Inc: Year-to-date, Hansen Medical Inc. (NASDAQ: HNSN) is up +73% compared to about +9% gains by the broader markets. This company, which produces and sell medical robotics, also posted a quarterly revenue growth of +95% in its last income statement.
Vision-Sciences Inc: Endoscopy related company Vision-Sciences Inc. (NASDAQ: VSCI) has climbed +133% in the last 12 months, and +71% since the start of 2011. In its last income statement, VSCI also posted a quarterly revenue growth of 4%.
Avanir Pharmaceuticals Inc: Developing products for the treatment of central nervous system disorders Avanir pharmaceuticals (NASDAQ: AVNR) has watched its stock gain +3% year-to-date and +52% since last May. This penny stock should be purchased as it trades at three times its 52-week low of $1.31.
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Columbia Laboratories Inc: Bioadhesive developer Columbia Laboratories (NASDAQ: CBRX) has been the biggest gainer on this list, having jumped +195% in the last 12 months. More recently, this penny stock is also up an impressive +41% since January. Buy this stock with a 52-week range of 88 cents to $4.31.
China Pharma Holdings Inc: Last quarter, China Pharma Holdings Inc. (AMEX: CPHI) posted a net profit margin of 35%. Additionally, the penny stock has gained +7% in the last 30 days alone. A quarterly earnings growth of +37% is another reason to purchase CPHI stock now.
As of this writing, Louis Navellier did not own a position in any of the stocks named here.