Tonix Pharmaceuticals (NASDAQ:TNXP) stock is having a rough week after releasing a disappointing preliminary analysis from a late-stage clinical study that seems set to fail. The stock has since plunged below $1.Considering that Tonix’s other late-stage studies focus on difficult to treat conditions such as Alzheimer’s disease and PTSD, its outlook looks frail. However, bold investors may see the stumble as a chance to buy in, and they could be right.
The company reported on July 23 that its phase 3 study of TNX-102 SL, its flagship candidate, would halt new fibromyalgia patients enrolment. This resulted from poor-than-anticipated preliminary analysis with the study’s IDMC recommending a stop to the trial because of insufficient benefit.
As a result, TNX-102 SL’s fate looks uncertain, but the company did report that the drug effectively minimized fibromyalgia pain relative to placebo. For now, investors should wait until the company concludes treatment of enrolled patients to perform analysis to ascertain what transpired. This could happen in Q4 2021, and thus in the coming months, TNXP is worth watching.
Market Reaction:
On Thursday, TNXP stock surged 4.58% at $0.69 with more than 11.20 million shares, compared to its average volume of 10.32 million shares. The stock has moved within a range of $0.6500 – 0.7039 after opening the trade at $0.6632.
