Biozone Phatmaceuticals, Inc. (OTCBB:BZNE) Retraces After Spike

After a green spike on Tuesday that sent the stock of Biozone Phatmaceuticals, Inc. (OTCBB:BZNE) through the roof to a close 36% in the green, yesterday the ticker let off some steam and closed 6% down on slightly faded volume.

The price of BZNE had been steadily moving up before the biggest spike, with volume picking up slowly. The company is a biotech working on its Qusomes technology – a rapid-release liposome that is currently used in cosmetics with BZNE looking to employ the technology as a new method for drug delivery.

Certain articles on BZNE highlighted the beneficial ownership of Dr. Phillip Frost, a name popular among those following biotech stocks and CEO of Opko Health, a NYSE-listed pharma enterprise. This helped BZNE spring into heavy share volumes after months of far quieter days with more than a few zero-volume sessions. However, the volume and the price movement did not hold and BZNE dropped dramatically over the following few sessions. The two form 144 filings that came during the drop, showing both Opko and Mr. Frost selling did not help solidify investor confidence either.

The last quarterly report from BZNE also showed a significant revenue shrink on a year-over-year basis. The main reason for this is explained further down the report – the company lost its biggest customer who was responsible for the roughly half sales.

Two days ago the company published an 8-K informing of a doubling of authorized common shares and authorizing 5 million preferred shares. It remains to be seen what the company intends to do with the new options this opens up.

Other biopharma stocks that traded heavily in yesterday’s session include OncoSec Medical, Inc. (OTCMKTS:ONCS) who closed 4% green yesterday. Titan Pharmaceuticals, Inc. (OTCBB:TTNP) had a red day, closing just shy of 1% down, remaining under $1.00.