Why Is Tonix Pharmaceuticals (TNXP) Stock Up 30% Today?

  • Tonix Pharmaceuticals (NASDAQ:TNXP) stock is rallying 30% in pre-market trading.
  • The rally was sparked by a patent that the company has received.
  • The patent covers the main component of a vaccine that the company is developing. The shot may be able to protect people from monkeypox.
TNXP stock - Why Is Tonix Pharmaceuticals (TNXP) Stock Up 30% Today?

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Tonix Pharmaceuticals (NASDAQ:TNXP) stock is soaring 30% in pre-market trading today after the company announced that it had received a patent for the main component of its “monkeypox and smallpox” vaccine. As monkeypox slowly spreads around the world, investors have bid up the stocks of companies that have or are developing vaccines which can be used to prevent the virus.

Earlier today, Tonix announced that it had obtained a patent “covering synthetic horsepox virus.” According to the company, the latter virus “is the basis for the Company’s TNX-801 vaccine in development to protect against monkeypox and smallpox.”

The patent, issued by the United States Patent and Trademark Office (USPTO), is expected to remain valid “until 2037,” Tonix stated.

Tonix’s Recombinant Pox Virus (RPV) platform is also covered by the same patent. The RPV platform is being used to develop vaccines that may prevent people from contracting other deadly diseases. The company’s TNX-1840 and TNX-1850 vaccines are designed to combat Covid-19 and its subvariants by neutralizing the virus’ spike proteins.

In a statement today, Tonix’s CEO, Seth Lederman, said that the company was getting ready “to advance horsepox-based live virus vaccines into clinical development.”

As of May 31, there were reportedly 15 confirmed cases of monkeypox in the U.S. and 584 such cases globally. However, a World Health Organization (WHO) official on Monday said the organization does not expect the outbreak to become a pandemic.

TNXP stock and similar vaccine stocks are expected to see more trading in the days and weeks to come as the monkeypox outbreak plays out.

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On the date of publication, Larry Ramer did not have (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.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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