Oppenheimer: Time To Buy Tonix Pharmaceuticals

In a report published Friday, Oppenheimer analyst Akiva Felt initiated coverage of Tonix Pharmaceuticals Holding Corp. TNXP with an Outperform rating and a price target of $18.

Analyst Akiva Felt believes that Tonix has been "overlooked" by investors after mixed Phase 2 fibromyalgia data was announced last September. There is "significant upside" in the stock with progress in fibromyalgia (Phase 3), post-traumatic stress disorder (Phase 2) and tension headache (Phase 2).

In the report Oppenheimer noted, "The market for approved fibromyalgia drugs topped $1.2 billion, despite only modest benefits, as well as tolerability issues causing treatment discontinuation. With TNXP's validated Phase 3 endpoint (30% pain responder) we see value in the fibromyalgia program despite "mixed" Phase 2 results."

Felt further added that the seriousness of PTSD continues to be a "high-visibility societal issue." The rationale for TNX-102 (both mechanistically and clinically) appears strong. "The current Phase 2 trial could yield breakthrough designation, if successful, and enable a faster path to market."

Felt commented, "Tonix is resurrecting isometheptene (used extensively through the 1990s), isolating the R-isomer as TNX-201 and avoiding hypertensive effects of the racemate. Data from a Phase 2 proof-of-concept study is set to read out by the end of 2015."

Oppenheimer enumerated the key upcoming milestones:

• Phase 2 TNX-201 headache data in 4Q15
• Phase 2 TNX-102 PTSD data in 1H16
• Phase 3 TNX-102 data in fibromyalgia in 2H16