Tonix Pharmaceuticals (TNXP) Stock Trades At Multi-Month Low: What to do Now?
5:48 pm Tuesday, August 03rd, 2021
Poor clinical results can be a major blow for any pharmaceutical and biotech company and in fact, can send the stocks into prolonged downward spirals.
Tonix Pharmaceuticals (NASDAQ:TNXP) seems to be going through such a stage at this point in time after the interim analysis from one of its late-stage clinical trials proved to be a massive setback. Experts believe that the trial for the product is almost certainly going to fail and that has resulted in a strong selloff in the stock. Back on August 1, the Tonix stock price had also gone below the psychologically important level of $1 a share. In this sort of situation, it is only natural for investors to wonder if the Tonix stock is doomed for a long time or if the current levels are an opportunity.
It should be noted that Tonix is working on the development of treatments for a range of diseases that are very difficult to treat like Alzheimer’s disease and post-traumatic stress disorder. The problems for the company started back on July 23 when Tonix announced that it was no longer going to enroll fibromyalgia patients for the Phase 3 trial of its product TNX 102.
That being said, it is also necessary to note that despite the company being in a really difficult position, it still has certain products in its pipeline that could help Tonix in making a comeback. Moreover, the company currently has $164 million in cash at its disposal, and hence, the survival of Tonix is not something to be worried about at this point.
