Is Tenax Therapeutics Inc. (NASDAQ:TENX) Sell-Off Over?

Tenax Therapeutics Inc. (NASDAQ:TENX)

Shares of Tenax Therapeutics Inc. (NASDAQ:TENX) gained 34.16% in Friday’s trading session, to end the week at $0.5098 a share.  The specialty pharmaceutical company has come under pressure this year as investors continue to question its long-term growth prospects.

TENX Stock Performance

TENX is down by more than 70% for the year as the pharmaceutical company failed to issue updates detailing developments on ongoing clinical programs.

Tenax Therapeutics Inc. (NASDAQ:TENX)

In July, Tenax Therapeutics Inc. (NASDAQ:TENX) held discussions with the U.S. Food and Drug Administration (FDA) regarding the regulatory pathway for Levosimendan. The company is investigating the candidate drug as a treatment option for patients undergoing coronary artery bypass grafting (CABG), to reduce the risk of low cardiac output syndrome. Levosimendan is also in trials for the treatment of patients with acute decompensated heart failure.

Positive Levosimendan Clinical Trials

The FDA meeting concentrated on additional analysis of Levosimendan surrounding 66% of the patients in the LEVO-CTS trial who underwent CABG alone. Initial clinical trial results indicate that patients who participated in the trial benefited from a highly significant 73% relative risk reduction in all-cause mortality.

“We are encouraged to find the data generated from the LEVO-CTS supports our continued belief that Levosimendan is an effective and safe inotrope to increase cardiac output in CABG only patients at risk for developing perioperative low cardiac output syndrome,” said CEO Michael Jebsen.

Tenax Therapeutics Inc. (NASDAQ:TENX) is currently awaiting a decision from the FDA on whether Levosimendan’s New Drug Application for the treatment of coronary bypass surgery can be filed. The agency has requested for additional information from published cross-study analyses to aid in its final decision.

Tenax Therapeutics is reviewing a number of strategic alternatives with the assistance of Ladenburg Thalmann & Co. Some of the strategies under review include a merger or a strategic investment into the company. The company is also reportedly open to license agreements as well as the acquisition of assets.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $TENX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Hard Choices Remain for Tenax Therapeutics Inc (NASDAQ:TENX)

Tenax Therapeutics Inc (NASDAQ:TENX)

After the market close last Friday, Tenax Therapeutics Inc (NASDAQ:TENX) provided a regulatory update after consultations with the U.S. Food and Drug Administration (FDA) and Health Canada regarding a regulatory path forward for their drug candidate levosimendan. The market has reacted negatively today, sending the shares down over 25% by noon EST on volume over seven times their listed 30-day average.

Tenax Therapeutics Inc (NASDAQ:TENX)
One month daily candlebar graph for $TENX

Last May, Tenax Therapeutics Inc (NASDAQ:TENX) held discussions with the FDA on a New Drug Application (NDA) for levosimendan in two indications – artery bypass grafting and acute decompensated heart failure. According to Tenax’s press release, the FDA has reviewed existing analyses and decided to request additional clinical trials.

The expense associated with such trials is enormous and Tenax Therapeutics Inc (NASDAQ:TENX) has decided to consult with their financial advisors before deciding on a path forward. The additional clinical trials would necessarily lower any ROI associated with the commercialization associated with the drug candidates if it was approved for sale by the FDA – a decision that is not guaranteed by any stretch. Accordingly, the company will also be considering strategic alternatives with Ladenburg Thalmann & Co. that will likely include a sale, merger, or strategic investment amongst other possibilities – none of which bode well for current shareholders.

Adjusted for dilution, shares of Tenax Therapeutics Inc (NASDAQ:TENX) had traded above $160 per share back in 2009 before going into a long decline that has not seen the shares trade above $1 since February. YTD, TENX shares are down over 60%, and are down over 70% for the year. In 2012, shareholders experienced a per share loss of (-$6.29) but that loss narrowed each successive year until 2016. In 2016 the per share loss was posted at (-$1.56) – an increase over 2015’s per share loss of (-$036). According to the NASDAQ>com website, there is only one firm that follows TENX shares and they give them a “Strong Buy” rating. The name of the lone firm? Ladenburg Thalmann & Co.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $TENX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.