Trinity Delta view: The value of Nexstim’s proprietary NBT platform is increasingly becoming visible. Whilst the first commercial delivery in the US for the depression indication is a useful milestone, the real value of the platform lies in the stroke rehabilitation indication. The major inflection point is rapidly approaching, with the results of the important E-FIT trial expected within circa three weeks. Assuming a positive outcome, the next stage will be to raise sufficient cash to implement a comprehensive commercialisation strategy and to progress the proposed clinical trial programme.
It should be remembered that Nexstim has significant opportunities ahead, if it is able to overcome its financial difficulties. In particular, transcranial magnetic stimulation is increasingly being recognised as a therapy for c 6m MDD patients, and NBT is the only system that can deliver accurate and reproducible treatment. Nexstim has also recently had a rapid treatment protocol approved by the FDA, reducing treatment time to 3 minutes vs 37 minutes currently, which should make the NBT system more competitive.
Prior to the announcement of the rights issue we valued Nexstim at €10.5m or €3.23/share; we will be reviewing our valuation once the results of the capital raise are reported.
Lighthouse
28 March 2019
| Price | €0.50 |
| Market Cap | €1.6m |
| Primary exchange | Helsinki |
| Sector | Healthcare |
| Company Code | NXTMH/NXTMS |
| Corporate client | Yes |
Company description
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.
Analysts
Mick Cooper PhD
mcooper@trinitydelta.org
+44 (0) 20 3637 5042
Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043
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