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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

9 Biotech Penny Stocks to Buy

6. Luna Innovations (LUNA)

Market Cap: $24.14 million

Luna Innovations (LUNA) is engaged in research, development and commercializing of technologies in two primary areas of focus: test and measurement, sensing, and instrumentation products and health care products. Luna shares have gained an impressive 196.8% since the end of Aug. 2009 despite the dip share prices have taken this summer. Don't count out the long-term earning potential for this Roanoke, Va.-based small-cap.

7. Neuralstem (CUR)

Market Cap: $90.72 million

Neuralstem (CUR) is focused on developing and commercializing of treatments for central nervous system disease based on transplanting human neural stem cells and small molecule drugs. The future could be bright as the company continues to work into their clinical trials to treat Lou Gehrig's disease; shares of this Rockland, Md.-based Neuralstem have gone up in value 80% since this time last year.

8. AVI BioPharma (AVII)

Market Cap: $246.311 million

AVI BioPharma (AVII) is a biopharmaceutical company specializing in the discovery and development of ribonucleic acid (RNA) based drugs targeting a range of diseases. AVII shares have been on an impressive climb this summer and shareholders have already enjoyed 54% gains since June. The Washington-based company has also beat earnings estimates during two of the past three quarters and is getting the attention of savvy investors looking to add some stability to their portfolio.

9. DUSA Pharmaceuticals (DUSA)

Market Cap: $55.44 million

DUSA Pharmaceuticals (DUSA) is a vertically integrated dermatology company that is developing and marketing Levulan photodynamic therapy and other products for common skin conditions. With 99% increases in DUSA share value from one year ago, investors who haven't heard of this small-cap stock will likely be taking notice of the high-value and low financial commitment involved in DUSA stock.

As of this writing, Louis Navellier did not own a position in any of the stocks named here.

One of Wall Street's renowned growth investors, Louis Navellier is the editor of four investing newsletters: Emerging Growth (formerly known as MPT Review), Blue Chip Growth, Quantum Growth and Global Growth. His longest-running publication, Emerging Growth, has a track record of beating the market nearly 3 to 1. Navellier is the author of a BusinessWeek bestseller, "The Little Book That Makes You Rich," and the chairman and founder of Navellier & Associates, Inc.

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