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Tonix Pharmaceuticals R&D pact with U.S. Army to be terminated 'without cause'

Tomi Kilgore

Tonix Pharmaceuticals Holding Corp. disclosed Friday that the U.S. Army Medical Material Development Activity (USAMMDA) is exercising its right to "terminate without cause" the research and development agreement with the company. The termination of the agreement, which Tonix and USAMMDA entered in December 2015, is effective April 29. Tonix has two development programs focused on post-traumatic stress disorder (PTSD), and is currently enrolling participants in a phase 3 trial. The stock has gained 8.2% year to date, but has plunged 93% over the past 12 months, while the S&P 500 has gained 16% year to date and advanced 7.9% the past year.