Investors of Tonix Pharmaceuticals (NASDAQ:TNXP) investors are not in the best state this week with devastating interim analysis from a late-stage clinical trial likely to fail, the stock price has plummeted below $1.
The firm’s late-stage programs infamously aim at hard conditions like post-traumatic stress disorder and Alzheimer’s disease, the firm is quite weak. Yet, daring investors may be looking at positive signs in the downturn.
The company on July 23, 2021, confirmed phase 3 trials for leading pipeline candidate, TNX-102 SL would not be taking new patients with fibromyalgia. This led to Independent Data Monitoring Committee suggesting a halt, due to insufficient benefits to patients.
Tonix had shown preliminary data in June 2021 suggesting that TNX-102 SL was efficacious in lowering fibromyalgia pain than a placebo. However, what has transpired in a month remains hazy.
Another issue is that TNX-102 SL is being investigated in late-stage clinical trials for PTSD, Alzheimer’s disease as well as alcohol use disorder. The drug was initially done for ameliorating sleep quality and treating fibromyalgia.
It is estimated that stock may take a while to recover, the company has some interesting projects in the pipeline indicating growth. With early-stage coronavirus medicines, its therapies for acute coronavirus infections as well as for long COVID may fill the much-needed gaps in the treatment landscape. Tonix had $164 million in cash and only $36.15 million in research and development (R&D) expenses in 2020.