Why is the stock price of TNXP dropping after its drug was approved by FDA?

The deep research logic is organized as follows: 

Okay, let's tackle this question. The user is asking why TNXP's stock price is dropping after its drug approval. First, I need to look at the data provided in the references. 

From the references, I see that TNXP received FDA approval for Tonmya on August 15, 2025. The stock price closed at $36.53 on August 19, 2025, with a significant drop of 8.83% . The company's financials show a net loss of $28.27 million in Q2 2025, with revenue of only $2 million . The diluted EPS is -$3.86, which is quite negative . 

The user mentioned that the stock price dropped after approval, which seems counterintuitive. Normally, FDA approvals are positive news. But looking at the articles, there are mixed reactions. Some articles note that the stock surged initially but then dropped . The reasons given include high pricing concerns, competition from generics, and financial sustainability issues. 

The company's cash runway is until Q3 2026, which is about a year from the approval date . However, the market might be worried about the company's ability to sustain operations and generate profits with such a high net loss. Also, the drug's pricing at $250/month is higher than generics like Lyrica and Cymbalta, which are priced between $150–$200/month . This could lead to reimbursement challenges and lower adoption rates. 

Another factor is the recent analyst downgrades. Noble Financial downgraded their profit forecasts, projecting wider losses . This could have spooked investors. Additionally, the stock's technical indicators might have triggered sell-offs, especially if there were short positions that got squeezed . 

The user's profile mentions interest in small-cap stocks with a golden cross and potential short squeezes. However, in this case, the stock dropped despite the approval, which might be due to the reasons mentioned above. The market might be pricing in the risks of high competition, financial instability, and regulatory uncertainties. 

I need to structure the answer by first stating the conclusion, then breaking down the factors into sections like financial health, pricing competition, market adoption, and technical factors. Each section should reference the appropriate data from the references. Also, include a visualization for the stock price drop as per the user's instructions. Make sure to use markdown tables and bold key points for clarity. 

I should also address the user's interest in technical analysis and potential short squeezes by mentioning the stock's volatility and recent price movements. However, in this case, the drop might be due to fundamental issues rather than a short squeeze. 

Finally, wrap up with a conclusion that ties all these factors together, explaining why the stock price dropped despite the FDA approval. Make sure to cite all relevant references and include the visualization as specified.

**Conclusion** 🚨
**TNXP's stock price dropped post-FDA approval due to concerns over financial sustainability, pricing competition, and market adoption risks, despite the drug's breakthrough potential.**

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### 📊 **Why the Price Drop?**
Let’s break it down with data from the latest reports:

#### 1. **Financial Health: Red Flags**
TNXP reported a **$28.27M net loss** in Q2 2025, with revenue of just **$2M** . The company’s cash runway extends only until **Q3 2026** , raising doubts about its ability to sustain operations while commercializing Tonmya.

| Metric | Q2 2025 Data |
|------------------------|------------------------|
| Net Loss | -$28.27M |
| Revenue | $2M |
| Cash Runway | Until Q3 2026 |
| Diluted EPS | -$3.86 |

#### 2. **Pricing & Competition**
Tonmya’s proposed price of **$250/month** faces steep competition from generics like Lyrica and Cymbalta, priced at **$150–$200/month** . Payers may resist covering a premium drug in a crowded market, limiting adoption.

| Drug | Price Range (Monthly) |
|------------------------|-------------------------|
| Tonmya (TNXP) | $250 |
| Lyrica (Pfizer) | $150–$200 |
| Cymbalta (Eli Lilly) | $150–$200 |

#### 3. **Market Adoption Risks**
Despite being the **first new fibromyalgia drug in 15 years**, Tonmya’s sublingual formulation and non-opioid profile face skepticism. Analysts warn of **physician inertia** and **reimbursement hurdles** .

| Market Concerns | Details |
|------------------------|------------------------|
| Reimbursement | Medicare favors non-opioids, but pricing may limit uptake |
| Physician Education | Need for awareness campaigns |
| Generic Competition | High risk of price erosion |

#### 4. **Analyst Reactions**
Noble Financial downgraded Q3 2025 profit forecasts, projecting **wider losses** . This aligns with the stock’s **8.83% drop** on August 19, 2025 .

| Analyst Takeaways | Impact |
|------------------------|------------------------|
| Noble downgrade | Profit warnings |
| Stock Price Drop | -8.83% |

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### 📉 **Key Takeaway**
TNXP’s FDA approval is a **breakthrough**, but the market is pricing in **execution risks**. The company must prove it can navigate financial pressures, secure payer contracts, and differentiate Tonmya in a crowded fibromyalgia market.

|code|Ticker|Name|Date|Closing Price|market_code|
|---|---|---|---|---|---|
|TNXP|TNXP.O|Tonix|20250819|36.53|186|