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Investors in penny stocks know that they are an inherently risky proposition. That goes double for any investor just getting into this market. But with great risk comes great reward. In this case, I think these are penny stocks with 1,000% upside potential. That would be a return any investor would love. 

First, the methodology for assessing upside potential: This is simply a measure of the current price against the target price. So, all of these stocks above could turn $1,000 into $11,000 is analyst ratings are right. 

Aside from the massive potential, you'll also notice that all but one of the stocks in this list of penny stocks with 1,000% upside potential are in the biotech and pharma space. In other words, that 1,000% upside is predicated upon U.S. FDA approval. That's very much hit or miss. But for those with an appetite for risk, there's plenty of appeal in that offer. 

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Here are my six penny stocks with 1,000% upside potential:

Ampio Pharmaceuticals (AMPE)

Upside Potential: 1,076%

Ampio Pharmaceuticals (NYSEAMERICAN:AMPE) is a company engaged in the development of therapies against inflammatory disorders. Inflammation is a well-known driver of multiple diseases, so any therapeutic treatment with FDA clearance has blockbuster potential. 

In the case of Ampio Therapeutics, that drug is Ampion, which works by suppressing inflammatory cytokines while activating anti-inflammatory cytokines. It may be used via injection, inhalation, or intravenous application. Ampion is being studied for its anti-inflammatory effects against osteoarthritis, respiratory conditions, and other inflammation-driven diseases. 

Ampion has been struggling to make sure its trials live up to FDA standards under Covid-19, but says those trials show some encouraging results. Management notes that "we have reconfirmed that the AP-003-A trial, which reflected an enrollment of   329 symptomatic moderate-severe osteoarthritis of the knee (OAK) patients, demonstrated a statistically significant decrease in pain at 12 weeks compared to saline (p=0.004)."

The company had roughly $29 million in liquidity at the end of Q1 and anticipated a monthly cash burn of $1.2 to $1.3 million through September. 

If it can get its trials back on track and expand on its positive findings, it could aim for its $2 price on TipRanks — a gain of 1,076%.

Alzamend Neuro (ALZN)

Upside Potential: 1,550%

Alzamend Neuro (NASDAQ:ALZN) is, as you may have guessed, engaged in the battle to cure Alzheimer's disease. The stock is underpinned by the potential of the firm's pipeline of therapeutics. That pipeline consists of two novel therapeutics, AL001, and AL002. 

The drive to defeat Alzheimer's disease has so far proven that resilience is necessary. To date, not much progress has been made. 

Long story short, Alzamend Neuro has a tough fight in front of it, but one that is necessary. It goes without saying that any firm to produce a successful therapy against Alzheimer's will see its stock multiply overnight.  

Both of Alzamend Neuro's candidate drugs remain early in their journey, with Phases 2 and 3 ahead before FDA approval. AL001 is being studied for its ability to reduce the symptoms of the disease while AL002 is being investigated for its ability to reduce amyloid plaques that are hallmarks of the disease. 

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Investing in ALZN stock requires a long-term view. That said, it is easier to jump from Phase 1 to Phase 2 than it is to pass later stages. If it can get to those later stages, ALZN will rise and could produce quick wins. If it becomes FDA-approved, its upside is massive. TipRanks' target price is currently $15.

Durect (DRRX)

Upside Potential: 1,263%

Durect (NASDAQ:DRRX) is a Cupertino, California-based biotech developing investigational therapies out of its Epigenetic Regulator Program. The stock is currently being covered by three analysts on Yahoo, with one calling it a buy and two calling it a hold. And Durect has met or exceeded EPS expectations in each of the last four quarters. 

Durect's potential derives from its goal to harness the power of epigenetic regulation. That basically means the company is focused on activating the innate healing power present within the human genome. Certain genes can be turned on and off, the premise of epigenetics, thus affecting the progression of the disease. 

Currently, Durect's most promising candidate within its pipeline is larsucosterol. Larsucosterol is in Phase 2b investigation for use against alcohol-induced hepatitis. 

The company also signed a licensing agreement for POSIMIR in the U.S. That will lead to low-to-mid double-digit royalties on sales and a potential $136 million in upfront and milestone payments. Durect will rise rapidly should those milestones be met. 

On TipRanks, the stock has a price target of $6.

Bird Global (BRDS)

Upside Potential: 1,067%

Bird Global (NYSE:BRDS) stock is the only pick on this list not engaged in the biotech field. Instead, the electric bike manufacturer derives its upside from the continued evolution of e-mobility. 

Bird Global is an e-mobility business focused on shared mobility platforms. What that essentially means is that the company rents electric scooters and electric bicycles. The business began in 2017 with e-scooters and quickly evolved into one underpinned by proprietary designed scooters a year later.

In June of 2021, the company launched its e-Bike sharing program and began retailing its e-Bikes in August of the same year. 

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There are multiple positive signs for the company which suggests investing makes sense. For one, the company projects between $275 million and $325 million in revenues in fiscal year 2022. Positive EBITDA is expected beginning in Q3 2022. That suggests that now may indeed be a very good time to jump on BRDS stock. TipRanks puts its target price at $5.50.

Applied Genetic Technologies (AGTC)

Upside: 3,246%

Applied Genetic Technologies (NASDAQ:AGTC) stock is rated a buy by half of the six analysts covering it. The company is another biotech firm and focuses on a pipeline of ocular, neurodegenerative and otology therapeutics. 

Currently, investor focus will be on the company's ocular-related therapeutics which include two orphan drugs. Data regarding those drugs will be issued in the first and second half of this year, respectively. That implies that any positive outcomes should bolster AGTC stock. 

The reason analysts are so positive about AGTC stock is partially that the company's therapeutics have the potential to reverse end-stage vision disorders — in other words, reverse blindness. The company's gene therapy is being investigated in combination with Bionic Sight.

If successful, the result could be a technology/therapeutic combination that restores sight to the blind. TipRanks currently lists a target price of $13.

Curis (CRIS)

Upside: 1,348%

Curis (NASDAQ:CRIS) stock represents an investment in the fight against cancer. The Massachusetts-based biotech is engaged in the development of oncologic therapeutics. 

The company is relatively far along in the development of cancer therapeutics: It has a robust clinical pipeline as well as an FDA-approved treatment for basal cell carcinoma.

There are other reasons to be interested in CRIS stock as well. For one, the company is financially robust with $120.7 million in cash providing a runway into 2024. Further, its emavusertib drug has been identified as a potential treatment against pancreatic cancer.

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In short, Curis is a well-established company with massive upside making it worth the risk. 

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That's because these "penny stocks" are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com's writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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