SpectraScience Inc. (OTCQB: SCIE), Pressure BioSciences Inc. (OTCQB: PBIO) and PositiveID Corporation (OTCBB: PSID) are three small biotech stocks with big potential. From cancer biopsies to sample preparation, these companies have developed products that revolutionize enormous industries representing billions of dollars in potential revenues.

SpectraScience: Redefining Cancer Biopsy

SpecraScience Inc. (OTCQB: SCIE) is a medical device company that has developed a light-based analysis system capable of determining whether tissue is normal, precancerous or cancerous, without removing tissue from the body. Through a recent agreement with PENTAX in Europe, the company has already generated some $310,000 in second quarter revenue.

The company’s initial shipment to Europe consisted primarily of WavSTAT4 systems sold at cost, which means the real growth may come down the road through the sale of disposable forceps. With an initial margin of around 50-60%, expandable to 80%+ over time, these recurring sales could result both significant top and bottom line improvements over near-term.

With a market capitalization around $14 million, the company trades at a fraction of its long-term potential. Meanwhile, several near-term catalysts – including its PENTAX agreement – could warrant investors taking a closer look sooner rather than later.

Pressure BioSciences: Improving Sample Preparation

Pressure BioSciences Inc. (OTCQB: PBIO) is a medical device company that has developed a proprietary laboratory instrumentation system that dramatically improves sample preparation in what amounts to a $6 billion market. Recently, the company entered the commercialization phase for its patented Pressure Cycling Technology (PCT) platform.

After years of research and development, the PCT Platform has been shown to significantly improve the detection of RNA, DNA and/or protein in a number of important applications. From improved forensic analysis to helping discover biomarkers for potential disease cures, the firm’s technology appears ready to revolutionize the sample preparation industry.

With a market capitalization of just $3.11 million, the company’s stock trades at an incredible discount given that it has 24 patents, 150 customers, and over 215 PCT Systems already on the market. Investors may want to take a closer look as its commercialization phase kicks into gear.

PositiveID: Entering into BioDefense

PositiveID Corporation (OTCBB: PSID) has developed a sophisticated airborne bio-threat detection system for America’s homeland defense, targeting a $3.1 billion procurement from the DHS for an early warning system for airborne biological agents. The company has been working diligently to create a unique automated product to meet these standards.

The Department of Homeland Security has already worked with the company in the past and invested several million dollars. Currently, there is only one other competitor pursuing the $3.1 billion contract at the bio-detector level – Northrop Gruman – but the firm believes it can attract a significant portion of the more than 200 units included in the order.

With a market capitalization of just $2.67 million, the company could see significant share price appreciation, if it’s able to secure even a small fraction of the government’s $3.1 billion procurement order. Investors may want to take a look at this stock given the incredibly low odds that the market is giving them for any success.