Tonix Pharmaceuticals (TNXP) stock plunged after the company carried out a 1-for-100 reverse stock split as it awaits approval for its breakthrough fibromyalgia treatment.
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The reverse stock split was intended to increase the per share trading price of TNXP stock to satisfy the $1.00 minimum bid price requirement for continued listing on the Nasdaq.
TNXP Awaits FDA Decision
However, the 54% decline on Monday, February 3rd, sent shares to just $0.19. Further losses in pre-market trading on Tuesday sent the shares down a further 18% to $0.16, raising the prospect that the company could be delisted before it wins approval on its key drug treatment.
TNXP is currently awaiting a decision from the U.S. Food and Drug Administration (FDA) on TNX-102 SL for fibromyalgia management, with a decision date slated for August 15th, 2025.
Tonix submitted a New Drug Application to the FDA in October 2024. If approved, it would be the first new treatment in 15 years for fibromyalgia, a chronic condition that causes widespread pain and tenderness in the body as well as sleep problems.
Tonix also has several other products in development, including TNX-1300 for cocaine intoxication and TNX-1500 for organ transplant rejection. Additionally, the company has secured a Department of Defense contract worth up to $34 million for developing TNX-4200, its broad-spectrum antiviral.
Is TXNP a Good Stock to Buy?
Only one Wall Street analyst has set a 12-month price target for TXNP in the last three months, although this was produced before the reverse stock split.
