€2.3m rights issue to progress both NBS and NBT
Lighthouse | 4 May 2020
Trinity Delta view: New funds, coupled with cost saving measures announced in March and the €0.9m debt cancellation of Business Finland R&D loans, will extend Nexstim’s cash runway into 2021. The stronger balance sheet provides Nexstim with the resources to continue to support its existing NBS (Diagnostics) and NBT (Therapy) businesses, in addition to investing in pilot studies to explore exciting and potentially highly lucrative new opportunities for its NBT SmartFocus navigated TMS (transcranial magnetic stimulation) system.
NBT’s highly accurate mapping capabilities and the FDA approval of the three-minute Thetaburst protocol in 2019 means it is well-suited to use in intensive treatment protocols. However, limited clinical data exists regarding the efficacy of an intensive TMS approach. If pilot studies in chronic pain (where NBT is CE marked but not yet FDA approved) and in hospitalised severe major depressive disorder patients who may have suicidal ideation (a distinct new in-patient TMS market) generate evidence of improved patient outcomes, this should increase the NBT market opportunity and also provide compelling differentiation over competing TMS systems.
We note that Nexstim is currently undergoing a strategic review and update which is expected to conclude in the spring. Ahead of this, and the closing of the fund raise, we maintain our €31.4m (€0.50/share) valuation.
4 May 2020
Nexstim is a targeted neuro-modulation company that has developed a proprietary navigated rTMS platform for use in diagnostics (NBS) and therapeutics (NBT). NBS is used in planning brain surgery while NBT is focused on depression and chronic pain. FDA approval for depression was given in 2017, and the focus is on its commercial roll out in the US, Europe and Asia.
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