In recent weeks, Tonix Pharmaceuticals (NASDAQ:TNXP) has been in the middle of a fair bit of trouble and it has been reflected in the price action in its stock as well. The death spiral in the Tonix stock came about due to the massive setback in the interim analysis from the late stage clinical trials of one of its products.
As a matter of fact, most experts believe that the project is almost certain to end in failure and consequently the stock suffered from a heavy selloff. In this regard, it should also be noted that the products being developed by Tonix are meant for tackling conditions like Alzheimer’s and PTSD (post traumatic stress disorder), which are well known for being difficult to treat.
That being said, many investors might be hoping for a turnaround and looking to get into the Tonix stock when it is at its lowest ebb. Although it is almost certain that it will take some time for the stock to mount a recovery, it should be noted that the company does have some products in its pipeline that could be promising. For instance, it is working on a range of products meant for treating coronavirus patients. Moreover, survival is not an imminent question since the company does have $164 million in the form of cash balance.
