Analyst Sees Success For Tonix Pharmaceuticals Holdings Corp.

Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP) lead drug candidate for fibromyalgia and post-traumatic stress disorder shows promise despite flunking a recent Phase IIb trial, an analyst said.

Tonix, up about 5 percent in the past three months, changed hands recently at $6.06, up $0.06 cents.

Janney's Chiara Russo said a current Phase III study of the Tonix drug "will read out positive" given the study's design and new primary endpoint.

Results are expected in the second half of 2015 and Russo launched coverage on Tonix with a Buy rating and $10 target.

The drug, TNX-102 SL, is a form of cyclobenzeprine, which is approved as a muscle relaxant. But it failed in a recent Phase IIb trial with fibromyalgia patients to reduce pain.

The disease affects up to 15 million Americans, mostly middle-aged women, with increased pain sensitivity, mood disorders and disrupted sleep.

Russo said adjustments to a current Phase III study will result in a positive outcome.

The three currently approved treatments for fibromyalgia focus on pain and mood, while the Tonix drug focuses on sleep disorders which are experienced by 90 percent of patients, Russo said.

The same Tonix drug is also undergoing a trial in military patients suffering from PTSD, a condition that recent studies suggest has similarities to fibromyalgia.

Russo said only Paxil and Zoloft are currently approved for PTSD treatment, and its efficacy for male patents is questioned.

If the Tonix' PTSD trial succeeds the company could "not only file for a Breakthrough designation, but ultimately stand alone in the market place," Russo said.