Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) Down by Quarter
Too bad good things don’t always last. Just yesterday, Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) shot up on unprecedented activity. On Monday, the ticker was sold, reaching dollar volumes of $1.87 million, down 25% to 59 cents. The pharmaceutical company shot up on news of big investors taking significant positions. Also, with low volumes, BZNE is underpriced, hovering around the 50-cent levels. There is still no promotional email that could explain the sudden peak. 
Tuesday will show if BZNE is really sought for its intrinsic qualities, as a new analytical article appeared just before the markets opened. BZNE has the great benefit of being the selection of billionaire investor Philip Frost. The week is still young, so we have to wait and see if that fame takes the stock to a higher range. 
The company is valued at just $41 million, so let’s see if the underlying assets are also worth the attention of investors. BZNE has an OTC-market model for consumer pharmaceuticals and beauty products, and this left it with:
- $354, 471 cash
- $8 million total assets
- $10.4 million total current liabilities
- $1.9 million sales for last quarter
- $729,756 quarterly net loss
BZNE is clearly an active trader, but is accumulating losses, and had a glitch with product recalls which undercut its earnings. But the stock has a whole separate story, awaiting a breakthrough in volumes. We have to wait and see if BZNE is not merely moving on big investors’ holdings, but actually impresses a larger audience.
One of the advantages of BZNE is the QuSomes technology for better absorption of active substances
in beauty products. BZNE also produces QuSomes products for other packagers of cosmetics.
Recently, several pharmaceutical tickers jumped significantly. The industry is full of surprises, and dramatic rises and falls follow very quickly. One of the stocks, Elite Pharmaceuticals, Inc. (OTCBB:ELTP) is just coming out of a period of a steep climb, followed by several days of correction. ELTP is currently around 12 cents, after quickly doubling in price to 16 cents from September 9th onward. Now, the ticker has to show if it can stage a return.
Soligenix, Inc. (OTCBB:SNGX) is another company that grew hot on news of government R&D grants, but its stock is sliding back from a peak of $2.40 toward the $2 levels.
If you need to pick a promising pharmaceutical ticker, do your research of the underlying company worth, but keep in mind that market logic may move the price differently. Stay away unless you can afford the slides that most tickers fall prey to.
