Q319 update shows therapy business momentum
Lighthouse | 16 October 2019
Trinity Delta view: Nexstim’s Q319 update provides further evidence of progress with its depression-focused strategy for the commercialisation of its NBT system. The momentum in system placements (including at high profile customers such as the Stanford University Medical Centre) coupled with their usage is contributing to increased recurring revenues, with average annual revenue per NBT system approaching Nexstim’s goal.
The company continues to explore options to strengthen its balance sheet and could raise c £2m before end-November from the exercise of warrants issued with the April capital raise.
We value Nexstim at €19.0m or €0.41/share diluted (in the money options or warrants only). We also highlight that should the company secure a licensing deal with the leading Californian institution (discussions ongoing, see October 2019 Update), we conservatively believe our valuation of Nexstim could be increased by €0.23/share diluted.
16 October 2019
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.
Mick Cooper PhD
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+44 (0) 20 3637 5043
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