Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) Revs Up on 8-K News
More and more pharmaceutical companies come in with fresh booming trends. But Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) is a curious case, being a new arrival with a great promise. The stock was expected to move upward, yet it still takes its time. On Thursday, BZNE added more than 14% to its stock price, reaching 77 cents on dollar volumes above $947,000. 
On Friday, the ticker started with an optimistic upward move, and it is possible to compensate for the four days of selling. But BZNE will have to attack the $1 levels again.
The reason behind the latest climbs may be a new 8-K filing, outlining the resolution of a lawsuit through an out-of-court agreement. BZNE would pay out $400,000 as a settlement sum to Aphena Pharma Solutions,
But the infringement is not the only problem for BZNE. The pharmaceutical firm signed a promissory note to pay a further $500,000 to Aphena at the beginning of next year, and also pay additionally through a warrant for 2 million shares, at 50 cents per share.
With so many warrants at 40 and 50 cents, BZNE is setting up insider selling pressures in the future, with just 70 million shares outstanding.
The new week will show if BZNE makes a decent run, or remains chaotic.
Other selections from the drug development sector include industry bellwether on the OTC markets, the inevitable Titan Pharmaceuticals, Inc. (OTCBB:TTNP). TTNP moved up above 92 cents, probably attacking the dollar levels again in the run-up to the FDA meeting in November. Yet investors are wary and the upward trend has been unsettled with selling and drops in price.
AP Pharma, Inc. (OTCBB:APPA) is gaining speed, with a few days of sharp additions to the price. The ticker reached easily 46 cents, and started the last trading day with an upward move. But in the past months, APPA has fallen right after reaching 50 cents, so the new trend will face a test at those levels.
If you still believe in the longer-term potential of BZNE, or even would like to take part in a faster, shorter run, keep in mind that BZNE is easily weighed down and avoid investing unaffordable sums.
