Today is a banner day for anyone who happened to hold Tonix Pharmaceuticals (NASDAQ:TNXP) stock over the weekend. Early this morning, Tonix disclosed an exclusive license with a drug developer which could produce an entirely new approach to treating Covid-19. Consequently, TNXP stock shot as much as 100% higher in early session trading today. Shares are now currently up closer to 40%.
Tonix Pharmaceuticals is a small clinical-stage biopharmaceutical company headquartered in New Jersey. Its portfolio includes candidates designed to address central nervous system (CNS) and immunology disorders as well as rare diseases and infectious diseases.
In a press release, Tonix revealed that it has obtained an exclusive license from drugmaker Curia Global “for the development of three humanized murine monoclonal antibodies (mAbs) for the treatment or prophylaxis of SARS-CoV-2 infection.”
That’s a mouthful, so I’ll break it down. Tonix may be on the way to developing a new treatment for Covid-19.
What’s Happening With TNXP Stock?
Suffice it to say that TNXP stock traders are lining up to buy shares today. Over 100 million Tonix shares have traded hands as of this writing. Fewer than 2 million shares is the average volume for an entire trading session.
Meanwhile, Tonix shares jumped as much as 100% from yesterday’s close this morning before cooling off a bit. For a moment, it felt as if the share price could actually reach $1 by the end of the day.
That’s not likely to happen, but the buyers are definitely in control of TNXP stock today. Clearly, they’re bullish on Tonix’s agreement for what could be a new approach to treating Covid-19.
Tonix CEO Seth Lederman believes there’s a need for second-generation monoclonal antibody treatments and prophylactics for Covid-19. Lederman points out that, “To date, the EUA [Emergency Use Authorization]-approved products have been derived from the blood of COVID-convalescent patients or a humanized mouse.”
So, the humanized murine monoclonal antibodies “discovered by Curia and licensed by Tonix represent a potential new approach to treating SARS-CoV-2 infection.” Lederman claims this treatment strategy has the potential to neutralize a “broader spectrum of SARS-CoV-2 variants.”
In other words, Curia Global may have discovered a game-changing approach to treating Covid-19. If so, Tonix should benefit from its licensing deal. That’s bullish for TNXP stock, or at least today’s traders seem to feel so. Given this development, it will be interesting to discover whether shares reach the $1 target in the coming days.
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On the date of publication, David Moadel 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.