Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) Bounces Off the 40-Cent Levels
What looks like a saving net won’t let Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) sink below the 40-cent levels. The ticker has often made falls, but never wiped out too much value, as insider option holders have all the reasons to keep the price as high as possible above their exercise values. 
Still, the transition of BZNE to a partner of MusclePharm corporation is not without glitches, especially when it comes to transferring the appropriate stock packages. So now, Levi & Korsinsky LLC, a legal firm, has taken upon itself to represent shareholders in what is reportedly a break of fiduciary duty during the transfer of stock packages from BZNE to MusclePharm.
Outside of that activity, the recent 10-Q of BZNE is also revealing additional details. Sales fell to a little above $2 million after BZNE lost a major customer at the end of 2012, due to a product recall. Still, gross profit was hurt less, down to $1.1 million from $1.9 million for the quarter to September 30th 2012.
But the most worrying number for BZNE is the net loss, widening from $98 K in the September 2012 quarter to more than $5.42 million due to extraordinary items and discontinued operations. A big part of this was recognizing a loss of $4.66 million from derivative instruments.
BZNE also expects upcoming conversions of notes to stocks, which would decrease liabilities, but also create conditions for stock dilution. So far the ticker has not broken to unreasonably high ranges, and has not even made a long enough trend to create a mass mania. BZNE corrects quickly once it touches higher prices. Not promoted, mostly in the hands of insider investors, BZNE only holds limited, shorter-term appeal.
The graph for BZNE recalls that of Titan Pharmaceuticals, Inc. (OTCBB:TTNP), which was scheduled for a fast recovery, but has been making slides downward in the past months, currently standing at 74 cents when the expectation was for easily vaulting the dollar level.
AP Pharma, Inc. (OTCBB:APPA), another staple in the sector, hit a pothole a few days back, but quickly recovered toward the 50-cent levels. APPA still offers rather high daily fluctuations, and in the past two months added more than a third to its price.
If you still want to make use of BZNE and its tendencies, it is best to realize that this ticker has thick days in the red, with significant retreating. Be aware of those tendencies before investing unaffordable sums.
