NEW JERSEY ( TheStreet) -- When successful, buying into early-stage biotech stocks can be very rewarding and can produce triple-digit returns. But it can also be extremely risky. It is important to make an early effort to locate guideposts for one's investment thesis and identify catalysts for significant moves. All of the signs are in place for this type of move in Biozone Pharmaceutical ( BZNE), perhaps even by year-end.Understanding Dr. Phillip Frost's recent deal-doing with Biozone and others helps make this clear. Over the past few years, Frost's Opko Health ( OPK) has been on an acquisition frenzy. This has led the stock to double in the past year. Last week it finally hit $10.00. The company now sports a market cap of nearly $4 billion. Frost's initial purchases were when it was a bulletin board stock trading at below $1.00. But even investors who bought last year have more than doubled their money. This performance has defied occasional skeptics over the past year, including me. But now, even the skeptics appear to have been converted. Prior to Opko, Frost's most notable transaction was the sale of Ivax to Teva ( TEVA) for $7.6 billion. Frost's deal-doing looks very much set to continue. Earlier this year, Opko acquired Prolor Biotech. Frost was already a substantial holder in Prolor before the acquisition. Prolor had been trading at below $5.00 when Opko announced that it would be acquiring the company for stock. Opko ended up owning Prolor and Frost simply ended up owning more Opko stock. By the time the deal closed, Prolor traded up to $8.23, making for quick gains of 60%. Frost's SafeStitch Medical was trading for just 25 cents a share earlier this year. The stock recently hit $1.50 and has stabilized at around $1.30, with a market cap of $230 million. In September, the company completed a merger with TransEnterix. Even though the stock has already risen by 4 to 6 time in 2013, there could well be significant upside remaining. However, it makes sense to hold off until the results of the merger start to become apparent.