Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) Looks Shaky on Second Day of Selling

Just as Biozone Pharmaceuticals, Inc. (OTCMKTS:BZNE) was showing signs of an upward movement, it slid back, losing 7.5% to stand at 74 cents on selling volumes of $757,000. The last two weeks were a struggle for BZNE, which is showing all the right signs for a long-term existence, yet there is still enough selling pressure to push the ticker down to its lower range at 70 cents.

BZNE is quickly abandoned when there is a lack of press releases- sold off just as it reaches a level appealing enough for profit-taking. Yet investors’ forums reveal that for BZNE, there are still long-term hopes, and an expectation that the shares would move to a price of a few dollars.

All of this is not unrealistic for a pharmaceutical company, especially one that does not rely on patents and future therapies. BZNE has a proprietary QuSomes technology already applied in cosmetics, as well as a line of OTC medicines and consumer products. Yet in the past days, even a detailed description of the company’s efforts for the future did little but cause a temporary boost in the shares.

BZNE is not being specifically pumped or promoted, although the ticker is duly mentioned as a sudden mover, with a great potential, and a star investor, Dr. Phillip Frost, to oversee everything. It’s just a question of starting that long-expected run.

But high quality rarely guarantees a painless stock ride. Titan Pharmaceuticals, Inc. (OTCBB:TTNP) is still struggling, sliding from a recent peak at $1.20 toward 85 cents, as the stock cannot manage to close the gap after the May fallout. And this pattern is not unusual for tickers of great promise that suddenly disappoint and cause the price to bottom out in a day.

Currently on the leg upward, AP Pharma, Inc. (OTCBB:APPA) also slows down a bit, stalling at around 46 cents. APPA is a high-loyalty bid that has had amazing runs, but also deep valleys when news or developments are slow.

For BZNE, we still have not intercepted a promotional email, although one could certainly serve to boost the stock levels and cause the run upward. For BZNE, right now the time is running to pay out $700K for a settlement agreement, as on October 28th the company agreed to a mutual release with rival companies Matrixx Initiatives, Inc. and Zicam, LLC.

We still don’t know what the effect of those deals and payments would be, but BZNE was recently as low as 63 cents. If you choose a price, make sure you can afford a retreat to lower values.