Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) Makes Another Sliding Week

Still too early to say, but Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) is not making a happy picture, charting another week in the red. On Tuesday, BZNE lost a further 9.9% to touch 68 cents, on selling volumes of $1.18 million. Since last week, BZNE gave signs that large-investor selling was almost over. But there is still not an exuberant takeoff.

The mood on message boards is not only subdued but downright pessimistic, expecting a break below 60 cents. Still, there is some hope that the selling is still low-volume, before BZNE is dialed in right and manages a sustainable climb.

All of this may be temporary, but it puts a question on the logic that may support the company. BZNE has secured investments through a non-toxic warrant sale, and has a technology that is widely used in the cosmetic sector, with viable options to employ it in food supplements. QuSomes is yet to prove itself as a remarkable source of revenues, and one has to wait and see how much publicity BZNE needs in order to take off.

If you want a similar caliber stock on a run, you can stop for AP Pharma, Inc. (OTCBB:APPA), which is again trying to stay above 40 cents, and perhaps repeat the peaks from last months. Although buying is still thin, APPA managed to open at 43 cents, with a positive mood early in the day.

For International Stem Cell, Co. (OTCMKTS:ISCO) the climb was also short-lived, not beyond the noisiest days of interest. ISCO peaked around 22 cents, and made a red series toward 17 cents.

BZNE disappointed investors on forums, which expected the upward swing to come sooner, and some realized profits at the recent peak. There was not enough optimism to turn the trends mid-week, and now BZNE has also the pre-weekend trading to face.

While pharmaceutical stocks are often capable of wild runs, these don’t come on short order. Sometimes, a company takes long months to gain enough momentum. And with only 70 million shares outstanding, a comparatively low amount, BZNE may not have enough of an outreach to harness a wave of interest.

If you still believe the fallout is the path to a bargain price, and that BZNE would not fall below 40 cents due to the protective effect of the warrants, it is still best not to expect too much of a positive outcome. We will be tracking BZNE to see if it will continue to test investors’ nerve.