Why Is Tonix Pharmaceuticals (TNXP) Stock Up Today?

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One of the biggest movers in today’s market is Tonix Pharmaceuticals (NASDAQ:TNXP). Currently, TNXP stock is up more than 40%, surging on extremely heavy volume.

rows of pills on a table representing pharmaceutical stocks
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As one might guess, there’s a big catalyst at work here. For biopharma companies, this is usually the case. These stocks tend to move on news more than fundamentals or earnings.

Tonix Pharmaceuticals is a company that many small-cap investors follow in the drug space. Specifically, the company is notable for its focus on developing drugs aimed at treating a wide range of diseases. The key candidates in its portfolio span various disciplines, from immunology to infectious diseases and central nervous system drugs.

As a clinical-stage player in this space, news is generally a good thing. A lack of positive news flow over the past year has taken shares of TNXP stock from around $1 a year ago to under 20 cents as of yesterday. However, today’s rise has brought the stock back up to roughly 28 cents as investors see fit to take a chance on the company.

Let’s dive into the key announcement driving interest in Tonix Pharmaceuticals today.

TNXP Stock Surges Higher on Orphan-Drug Designation

The big news? Today, Tonix announced that its TNX-2900 drug aimed at Prader-Willi syndrome has been granted an Orphan-Drug Designation by the U.S. Food and Drug Administration (FDA).

This designation opens up a number of incentives for the company, including exemptions from user fees, tax credits and the possibility of “seven years of market exclusivity after approval.” For investors, it’s a big win and a step in the right direction.

Typically, the FDA gives these approvals to drugs that handle rare conditions and look promising. With a figurative stamp from the FDA to submit documents and potentially receive approval more quickly — and with the potential exclusivity — there’s a lot to be gained should TNX-2900 be officially approved.

To date, Tonix’s ongoing trials appear to be promising, as well as the unmet need for this drug. Today’s price action in TNXP stock suggests investors are bullish on the company’s outlook from here.

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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/03/why-is-tonix-pharmaceuticals-tnxp-stock-up-today/.

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