Steve Cohen's Point72 Buys $20M of Biotech Stock Advancing Depression Treatment

New York Mets owner and billionaire investor Steve Cohen is renowned for his high-risk, high-reward investing style. He founded SAC Capital Advisors—once among the most successful hedge funds—before establishing Point72 Asset Management. With a net worth estimated at $23 billion (£17 billion), Cohen's hedge fund has delivered impressive gains over recent years, outperforming the broader market. Over the past three years, Point72's top 20 holdings have gained 131%, compared to the 64% rise in the S&P 500.

On 29th December 2025, Point72 added Tonix Pharmaceuticals (Nasdaq: TNXP) to its portfolio, purchasing over 1.23 million shares of the biotech stock worth approximately $20 million (£14.9 million), at an average price of $16.28 (£12.09) per share. The company has announced several significant milestones in the past month, which investors are viewing as positive catalysts for the stock.

Tonix's FDA Clearance for Phase 2 Trial

Cohen's move comes after Tonix announced that the US Food and Drug Administration (FDA) has approved the Investigational New Drug (IND) application for the clinical development of cyclobenzaprine HCl sublingual 5.6 mg tablets to treat major depressive disorder (MDD) in adults. This FDA clearance allows the emerging biotech firm to proceed with its phase 2 trial, with patient enrolments expected to commence in mid-2026.

Previous studies of cyclobenzaprine HCl sublingual in conditions such as fibromyalgia and post-traumatic stress disorder have shown promising signals for improving depressive symptoms, as measured by the Beck Depression Inventory-II and the Montgomery-Asberg Depression Rating Scale.

Update on Drug for Lyme Disease

More recently, Tonix revealed plans to meet with the FDA this year to explore phase 2 and 3 development options for TNX-4800, a candidate aimed at treating Lyme disease in humans. The company stated that there are currently no FDA-approved prophylactics available to prevent the disease.

According to Tonix CEO Seth Lederman, TNX-4800 provides near-immediate immunity to the bacteria responsible for Lyme disease following a single dose. This approach differs from the Lyme disease vaccines currently under development.

'We are on a path to have an investigational product produced under Good Manufacturing Practices available for testing early in 2027. We believe TNX-4800's long-acting mAb prophylaxis could play an important role for preventing Lyme for millions of people,' Lederman said.

Licensing TNX-4900 for Chronic Neuropathic Pain

In mid-December, Tonix announced that it had acquired exclusive global licensing rights to TNX-4900, which has demonstrated analgesic activity in preclinical models of neuropathic pain.

'With our extensive experience studying and developing FDA-approved non-opioid analgesics, we are well-positioned to oversee this new development programme. We believe TNX-4900 has the potential to be a best-in-class treatment,' Lederman added.

In preclinical models of diabetic and chemotherapy-induced neuropathic pain, TNX-4900 showed significant reductions in pain behaviours after both acute and chronic dosing, without signs of tolerance or motor impairment. Tonix intends to advance TNX-4900 through expanded pharmacokinetic and safety studies to support IND-enabling development.

The drug was developed through a programme led by Dr. Youyi Peng and Dr. William Welsh at Rutgers University. It exhibits high blood-brain barrier penetration and has favourable pharmacokinetic properties, including oral bioavailability of 28%.

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