Tonix Pharmaceuticals announces reverse stock split

CHATHAM, N.J. - Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP), a biopharmaceutical company, has announced a 1-for-100 reverse stock split of its common stock, set to take effect as trading opens on February 5, 2025. The action is aimed at boosting the company’s per-share trading price to comply with NASDAQ’s minimum bid price requirement for continued listing. According to InvestingPro data, TNXP’s stock has seen a 96% decline over the past year, though it has shown strong returns in recent months with a 30% gain year-to-date.

The reverse stock split will consolidate every one hundred shares of existing common stock into one share. This consolidation will also extend to shares issuable upon the exercise of outstanding warrants and stock options. Despite the reduction in the number of outstanding shares, the total number of authorized shares will remain unchanged, following shareholder approval received on October 30, 2024. With a current market capitalization of $80 million and a beta of 2.02, InvestingPro analysis reveals the company holds more cash than debt, though it’s quickly burning through its reserves.

Tonix’s common stock will continue trading on the NASDAQ Capital Market under the symbol "TNXP" and a new CUSIP number. Shareholders will receive instructions from VStock Transfer LLC, the company’s transfer agent and exchange agent for the reverse split, on how to exchange their share certificates. Fractional shares resulting from the reverse split will be rounded up to the nearest whole share, with no cash paid out for fractional shares.

The company focuses on therapies for central nervous system disorders and vaccines for public health challenges. Tonix is working to advance TNX-102 SL, a candidate for managing fibromyalgia, which has reached the New Drug Application (NDA) stage with the FDA and has been granted a Prescription Drug User Fee Act (PDUFA) goal date of August 15, 2025, for a decision on marketing authorization. The FDA has granted TNX-102 SL Fast Track designation for fibromyalgia management. Financial metrics from InvestingPro show significant revenue growth of 183% in the last twelve months, though analysts don’t expect profitability this year. Subscribers can access 11 additional ProTips and comprehensive financial analysis for deeper insights into TNXP’s potential.

Tonix’s portfolio also includes TNX-1300, a Phase 2 biologic for treating cocaine intoxication, which has received FDA Breakthrough Therapy designation. The company’s immunology pipeline features TNX-1500, a monoclonal antibody in development for preventing organ transplant rejection and treating autoimmune diseases.

The company’s commercial subsidiary, Tonix Medicines, markets two products for acute migraine treatment in adults. The press release also mentions Tonix’s contract with the U.S. Department of Defense’s Defense Threat Reduction Agency to develop antiviral agents, emphasizing the company’s ongoing research and development efforts.

This news is based on a press release statement from Tonix Pharmaceuticals Holding Corp.

In other recent news, Tonix Pharmaceuticals has had several key developments. The U.S. Food and Drug Administration (FDA) has set a goal date of August 15, 2025, to complete its review of the New Drug Application (NDA) for TNX-102 SL, a non-opioid treatment for fibromyalgia. This drug, backed by data from two Phase 3 studies, could be the first new fibromyalgia treatment in over 15 years.

In addition to this significant development, Tonix Pharmaceuticals has increased its maximum aggregate offering price from $150 million to $250 million under its existing Sales Agreement with A.G.P./Alliance Global Partners (NYSE:GLP). This financial move is expected to support the company’s ongoing research and development efforts.

Analysts from Noble Capital have maintained an Outperform rating on Tonix’s stock, reflecting confidence in the company’s recent developments. The company has also secured a Department of Defense contract worth up to $34 million for the development of its antiviral drug, TNX-4200, in collaboration with X-Chem, Inc.

Tonix Pharmaceuticals has also made strides in public health with its mpox vaccine candidate, TNX-801, showing promising results in preclinical studies. Finally, the company is advancing other candidates for central nervous system disorders and has a broader portfolio that includes potential treatments for organ transplant rejection, autoimmune diseases, and vaccines for public health challenges.

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