Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) Ends Monday with Buying
Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) had its first day of net buying, adding just around 4% to reach a price of 50 cents, after days of probably insider selling pressured the ticker. Dollar volumes were still small, just above $1 million. BZNE may be pressured in the short term, but it also holds a lot of positive potential, with the QuSomes technology pulling enough attention to the company. 
Now, BZNE has to prove if it has what it takes to be an actively moving stock, and not just in case a large investor appears to move it according to his preference. BZNE is still outside the radar of paid promoters, which may explain the inactive trading in the past years. The ticker went active just after presenting to an investors’ conference, where it attracted the attention of Dr. Phillip Frost. 
Dr. Frost took a 25% position in the company, but what is even stranger is that a total of more than 20 million shares were sold off last week, nearly a third of all the shares outstanding. It is possible that insider transactions are taking place, and we could be waiting for a disclosure. BZNE so far is behaving oddly, unlike any other pharmaceutical stock.
It is possible that Dr. Frost, a founding investor in BZNE, may be selling off to fund the company’s expansion, but those are just hypotheses. BZNE needs a few more days to show what it is becoming.
If you need a better-proven ticker, you may want to have a look at LaJolla Pharmaceutical Co., Inc. (OTCBB:LJPC), which recently doubled in price from $0.08 to $0.16.
Elite Pharmaceuticals, Inc. (OTCBB:ELTP) was another strong climber that went through a small valley, and is now slowly recovering, at 13 cents, just below its 16-cent peak.
The pharmaceutical sector is extremely active in the last few days, and as usual a piece of positive news produces amazing results. At the same time, those drug companies drop quickly at signs of trouble. If BZNE goes into a similar cycle, its QuSomes technology could create a following of investors, awaiting news of innovative applications.
If 50 cents looks like the right price, it is up to you to try out BZNE and see if it is capable of generating movement on its own. Otherwise, avoid investing unaffordable sums in a stock that was barely active a few days back.
