Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) Cannot Contain Slide
On Friday it seemed Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) was finally going to stop the price from slipping but the early morning recovery ultimately reversed into a slide that brought the stock to a close over 5% in the red, at $0.48. Share volume remained heavy, with 4.2 million shares changing hands.
It seems even the legend of Dr. Frost, CEO of Opko Health, Inc., did not manage to help the stock’s movement. BZNE suddenly hopped into millions of shares in daily volume after many zero-volume days in August and September. The trigger was the announcement that Dr. Frost, who has made a name for himself as a respected and savvy investor, held a significant beneficial ownership position in BZNE. Dr. Frost’s name was on BZNE‘s books as early as their 10-K for 2012, with a 12% ownership.
To the disappointment of new entrants into BZNE who decided to jump onboard during the first huge volume day, after a certain outlet stated that Opko Health now has a 25% position in BZNE, the price of the ticker went on a red streak. In the following five sessions the price kept dropping and a much larger share volume was moved during the slide. Those who were excited enough to enter on the first day of strong volume are now sitting on losses ranging from 18 to 31 cents for each share purchased.
BZNE has developed a patented technology named QuSomes, or quick liposomes. Their intended use is to serve as a novel method of drug delivery. Despite the fact that the company, unlike many of its OTC peers and smaller pharma companies, was generating revenues in the millions, those revenues have recently taken a serious hit. The company’s most recent quarterly report states that revenues have dropped by 52% on a year-over-year basis for the first two quarters. BZNE did a voluntary recall of product delivered in late 2012 and in the process lost its biggest customer.
What’s in store for BZNE remains to be seen but the last two weeks have once again shown that it’s not a good idea to load up with shares of any given company just because someone on a stock blog posted a very upbeat article for it, even if the company has proven its ability to generate revenues.
Other big movers and shakers in yesterday’s market session include Globalstar, Inc. (OTCMKTS:GSAT) who had another successful day, closing 8% up on increasing volume and topping the OTC dollar volume charts for the day. Alkaline Water Company, Inc. (OTCBB:WTER) once again retreated, taking a big plunge right at the open and stopping 8.5% down by the closing bell.