Clinical-stage biotechnology firm Tonix Pharmaceuticals (NASDAQ:TNXP) – which focuses on novel therapeutics and diagnostics – is making waves today, announcing the issuance of a patent. Specifically, the U.S. Patent and Trademark Office (or USPTO) granted a patent on TNX-1900 for the indication of treating pain, including that stemming from migraine headaches. TNXP stock shot up around 12% in late-morning trading.
According to Tonix’s press release, the patent – excluding any possible term extensions – should provide the biopharmaceutical company with U.S. market exclusivity until January 2036. It’s a significant milestone for the organization because it represents forward progress. While Tonix is hardly a one-therapeutic show, its pipeline largely consists of early clinical stage products. Naturally, executives are encouraged at the patent news.
“The USPTO’s issuance of this patent is an important milestone in protecting our expanding central nervous system therapeutic portfolio,” said Tonix CEO Seth Lederman, M.D. “An estimated four million individuals in the United States suffer from chronic migraine. We believe that by engaging and stimulating oxytocin receptors in the trigeminal ganglia, TNX-1900 has the potential to help those chronic migraine sufferers.”
TNXP Stock and the Total Addressable Market
According to the Mayo Clinic, a “migraine is a headache that can cause severe throbbing pain or a pulsing sensation, usually on one side of the head. It’s often accompanied by nausea, vomiting, and extreme sensitivity to light and sound. Migraine attacks can last for hours to days, and the pain can be so severe that it interferes with your daily activities.”
Moreover, information published on the JAMA Network notes that migraine affects more than 10% of people worldwide. In the U.S., roughly 39 million people suffer from the condition, presenting a significant total addressable market for TNX-1900. As well, the economic disruption inherent in migraine cases may help bolster TNXP stock as societies push for a viable solution.
Data compiled by ResearchAndMarkets.com notes that the global migraine drugs sector reached a valuation of $1.8 billion in 2019. Experts project that by 2030, the segment will hit a valuation of $2.44 billion.
For TNXP stock, which features a market capitalization of less than $70 million at time of writing, the underlying migraine treatment could represent a much-needed catalyst. While today’s announcement buoyed shares, they’re still down approximately 85% on a year-to-date basis. Over the trailing year, TNXP has hemorrhaged more than 91% of market value.
Why It Matters
Securing patent protection – and defending its privileges – is vital for TNXP stock and other clinical-stage biotech firms. A recent example of what could happen when patent protections fail came courtesy of Bausch Health (NYSE:BHC).
Due to an unfavorable courtroom decision, Bausch Health’s subsidiary lost exclusivity for a key drug and revenue maker. Shares tumbled horrifically on the news, with BHC still struggling to mount an effective response.
While the issuance of patents don’t guarantee success, for small-cap biotech companies, they can offer meaningful stepping stones for future developments. Therefore, it’s not surprising that TNXP stock has responded positively, though the underlying company still has a challenging road ahead.
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On the date of publication, Josh Enomoto 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.
