5 Biotech Penny Stocks Redditors Love

3. Brickell Biotech, Inc. (NASDAQ:BBI)

Number of Hedge Fund Holders: 5    

Brickell Biotech, Inc. (NASDAQ:BBI) is a biotech firm working on drugs for the treatment of autoimmune, inflammatory, and other debilitating diseases. On May 3, the stock soared by close to 30% after the company announced that it had sold the rights of sofpironium bromide to Botanix Pharmaceuticals. The drug is used as a topical therapy for treating primary axillary hyperhidrosis, or excessive underarm sweating. The company will receive an upfront payment of around $9 million and milestone payments of up to $168 million from the sale. 

On March 8, William Blair analyst Tim Lugo initiated coverage of Brickell Biotech, Inc. (NASDAQ:BBI) stock with an Outperform rating and a price target of $2, noting the current valuation offered a strong risk/reward profile for investors.

At the end of the fourth quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $865,000 in Brickell Biotech, Inc. (NASDAQ:BBI), up from 3 the preceding quarter worth $1.2 million.