Tonix (TNXP) stock soars after monkeypox-related patent. Buy call?

Highlights

• Tonix (NASDAQ: TNXP, TNXP: US) stocks swelled by nearly 49 per cent at 10:19 AM EST on Wednesday.
• The biotech company has announced the issuance of a patent for a pox-related vaccine.
• In addition, this patent also covers claims for its Recombinant Pox Virus (RPV) platform.

Stocks of Tonix Pharmaceutical (NASDAQ: TNXP, TNXP: US) swelled by nearly 49 per cent to C$ 3.635 per share at 10:19 AM EST on Wednesday, June 1. This price surge came as the biotechnology company announced receiving a patent from the US Patent and Trademark Office (USPTO) related to its pox vaccine.

The USPTO is said to have issued a patent that comprises claims covering synthetic horsepox virus, which Tonix noted is the basis for its developing vaccine meant for smallpox and monkeypox, TNX-801. The same basis is also being used for the development of Tonix’s Recombinant Pox Virus (RPV) platform, which is meant to shield against other pathogens.

The Synthetic Chimeric Poxviruses patent, excluding any extension or term adjustments, is likely to offer market exclusivity to the company till 2037, added Tonix Pharmaceutical.

So, let us have a look at Tonix Pharmaceutical’s overall performance.

Tonix Pharmaceutical (NASDAQ: TNXP, TNXP: US) Q1 FY2022 results

Tonix Pharmaceutical spent US$ 18.42 million in research and development (R&D) in Q1 FY2022 compared to US$ 15.23 million a year ago. The company anticipates that its R&D costs to expand as it remains focused on investing in the development pipeline and progressing its clinical development program in 2022.

The pharmaceutical company also increased its net loss to US$ 26.41 million in the first three months of 2022 compared to US$ 20.65 million in Q1 2021.

Also read: Monkeypox spreads in Canada: 5 vaccine stocks to keep on your radar

Tonix Pharmaceutical Holding’s stock performance

TNXP stock galloped by roughly 125 per cent in the past one week. At the current price level, this pox stock swelled by nearly 133 per cent from a 52-week low of C$ 1.91 (May 26). According to Refinitiv findings, TNXP stock’s Relative Strength Index (RSI) value grew sharply to 58.68 on June 1, denoting an increasing trend in the market.

Tonix Pharmaceutical seems to have drawn investors’ attention as it received the U.S. patent for TNX-801 and RPV vaccines, which could significantly benefit considering surging cases of monkeypox worldwide.

Also read: 5 TSX industrial stocks to watch as China’s manufacturing improves

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.