Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) Heads Upward on Merger News
Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) is shaking things up again, coming up with a new bout of financial results and a letter of understanding for an upcoming merger. BZNE grew to 53 cents as nearly 3 million shares were bought. The daily growth reached 25% on dollar volumes above $2.4 million, as bidding started far above the levels of the previous day. For BZNE, a smooth upward run was expected for a while, though it never materialized. Now, the last few days look as if they would be reviving the hope. 
The latest merger plans include privately held Cocrystal Discovery, Inc., a producer of antiviral drugs. Cocrystal has been known for receiving attention from Israeli company Teva Pharmaceuticals, which continuously searches for new therapeutic avenues. But the link to BZNE passes through the Frost Group and Opko Pharmaceuticals. BZNE is already held largely by Dr. Phillip Frost, and is expected to play a role in his larger pharmaceutical business. 
Still, BZNE has remained outside the usual selection of OTC investors, as the ticker is not promoted by email or other means. And instead of a smooth run, BZNE seeks direction as its business is undergoing changes to fit into the plans of Dr. Frost.
The graph of BZNE recalls that of Elite Pharmaceuticals, Inc. (OTCBB:ELTP), which after an initial moment of rush moved sideways, looking fatigued, but now it’s running a small upward trend.
The last days came with some careful optimism for Titan Pharmaceuticals, Inc. (OTCBB:TTNP) as well, though the last weeks offer a series of dizzying corrections.
In the case of BZNE, it seems the Frost effect would be a major driver for a while, and this gives a certain support to the shares. Investor forum opinions vary between recognizing a clear potential in BZNE, and considering it a lifeless ticker that has little to offer.
The latest financial statements, until March 2013, show that the company’s revenues shrank to about $2 million, though the net loss was also curbed to $1.47 million, nearly down by half from the quarter before that.
For BZNE, now it remains to be seen how the merger would be structured, and if it would lead to changes in the number and value of shares, as well as the potential for dilution. But the resulting corporation would keep the same symbol, which in a way gives exposure of private Cocrystal to the OTC markets.
