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TENX Stock: A Breakout Opportunity in the Specialty Pharmaceutical Industry?

Tenax Therapeutics, Inc. (TENX) made headlines in the stock market today as the stock gained over 90% in extended hours trading. The impressive surge in TENX’s stock price was triggered by a major announcement made by the company. The company received approval from the United States Patent and Trademark Office (USPTO) for its patent application for the use of IV levosimendan.

Tenax Therapeutics, Inc. (TENX) is a NASDAQ listed TENX stock with a market capitalization of 3.87 million. The 50-day moving average price for TENX stock is 2.53, while the 200-day moving average price is 5.96. The stock has seen an average volume of 364089, with the most recent volume reaching 1.17 million.

Significant Intellectual Property Protection

Tenax, a specialty pharmaceutical company focused on developing and commercializing products for cardiovascular and pulmonary diseases, received a Notice of Allowance from the United States Patent and Trademark Office (USPTO) for its patent application regarding the use of IV levosimendan in the treatment of pulmonary hypertension with heart failure with preserved ejection fraction (PH-HFpEF). The patent, which is expected to last until 2040, will provide substantial added intellectual property protection for the company’s use of levosimendan in the treatment of PH-HFpEF patients in the United States.

Promising Pipeline and Potential for Significant Exclusivity

According to the latest presentation by Tenax Therapeutics, the company has a therapeutic focus on patients with high unmet medical needs, particularly in the areas of pulmonary hypertension. The company has a promising pipeline with two phase 3-ready products, TNX-103/102/101 and TNX-201. The FDA has agreed to small Phase 3 trials for approval for both programs, which is an efficient clinical development pathway for the company. Tenax has the potential for significant exclusivity, including orphan exclusivity and patents, that could translate into a significant commercial opportunity. The company believes that there is a potential for two $5 billion markets for its products, based on the information presented in its documentation.

Financial Performance and Liquidity Analysis

In terms of financial performance, Tenax reported a net income of -$32.47 million and earnings per share (EPS) of -$1.58 in 2021. The TENX stock also has a negative Price-Earnings ratio of -3.8, indicating that the stock is trading below its earnings. Additionally, the TENX’s stock return on assets and return on equity are both negative at -2.47% and -2.82% respectively, indicating that it’s not generating a positive return for its investors.

In terms of liquidity, Tenax has a strong current ratio of 6.54, which means that it has sufficient short-term assets to cover its short-term liabilities. However, the TENX’s stock debt ratio is relatively high at 0.17, meaning that a significant portion of its assets are financed by debt. The TENX stock also has a negative cash-flow to debt ratio, indicating that it’s not generating enough cash to cover its debt obligations.

Conclusion

Overall, while Tenax has a strong current ratio, the TENX’s stock negative financial performance and high debt levels are concerning for investors. Further research into the TENX stock growth prospects and financial stability should be conducted before making an investment decision.

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