Tonix Pharmaceuticals (TNXP) Stock Soars On Coronavirus News

Tonix Pharmaceuticals TNXP Stock News

Tonix Pharmaceuticals Holding Corp (NASDAQ: TNXP) is making a run for the top in the market this morning. In fact, the stock is gaining in multiples after announcing that it is joining the race to develop an effective vaccine for the Wuhan Coronavirus. Here’s what’s happening:

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TNXP Rockets On Coronavirus Vaccine Development

Tonix Pharmacueticals issued press early this morning, saying that it has entered a strategic collaboration with Southern Research. The collaboration surrounds the development of TNX-1800, a potential vaccine to protect against COVID-19, also known as the Wuhan Coronavirus.

The company’s claim to fame here is using live modified horsepox virus vaccines to fight against the onset of serious conditions. In fact, TNXP is using this platform to develop TNX-801 as a potential smallpox vaccine.

It is believed that the company’s proprietary horsepox virus has the potential to serve as a vector for vaccines to protect against various infectious agents, including COVID-19.

As part of the collaboration, Southern Research will test one or more vaccine constructs in the TNXP horsepox vector that express one or more proteins or protein fragments from the virus that cuases COVID-19.

In a statement, Dr. Seth Lederman, CEO at TNXP, had the following to offer:

Although vaccinia vectors are available, different orthopoxvirus strains may behave differently as vectors in part because of their different repertoire of genes that modulate immune responses and host range. Potential advantages of horsepox are the strong immunogenicity we observed in macaques and mice with good tolerability. The protein synthesis connected with a replicating live virus vaccine provides direct antigen presentation, which can stimulate cellular immunity in addition to humoral immunity.

Why Investors Are Sending The Stock On Gains In Multiples

We all know that COVID-19 is a very serious illness that has been deemed highly infectious. As a result, the development of an effective vaccine would likely be met with tremendous demand, sending sales through the roof. However, several other companies have announced that they are working on a vaccine for this condition, and they didn’t climb by more than 100%. What’s the deal here?

Well, it seems to be a short squeeze. Before today’s announcement, Tonix Pharmaceuticals was very heavily shorted. However, when the announcement hit, the stock started to scream through the roof.

As this happened, short sellers started losing money, forcing them to race for cover and sending both volume and price soaring. To learn more about short squeezes, click here.

While we will likely see some profit taking at the top, this news is still great and can lead to a big long term opportunity. So, investors should be paying close attention to TNXP ahead.

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