Nexstim is a Finnish, globally operating medical technology company. Our mission is to enable personalized and effective therapies and diagnostics for challenging brain diseases and disorders. Nexstim has developed a world-leading non-invasive brain stimulation technology called SmartFocus®. It is a navigated transcranial magnetic stimulation (nTMS) technology with highly sophisticated 3D navigation providing accurate and personalized targeting of the TMS to the specific area of the brain. SmartFocus® nTMS technology is used both in therapy and diagnostics. Nexstim shares are listed on the Nasdaq First North Growth Market Finland and Nasdaq First North Growth Market Sweden.
What have been the milestones so far in your company development?
Nexstim was founded as a spin-off from a research group working in the Helsinki-area universities. The company was established to commercialise the opportunity of adding new kind of e-field navigation to an existing transcranial magnetic stimulation (TMS) technology. This allowed, for the first time, the TMS to be visible, more accurate and personalized for every patient.
The accuracy of this technology was first validated in the field of neurosurgery: Nexstim received FDA clearance for pre-surgical motor mapping in 2009 and FDA clearance for speech mapping in 2012. Brain maps created with Nexstim nTMS technology can be invaluable when deciding the best treatment option for a patient with brain tumour, for example. We are still the only company to have these FDA clearances for motor and speech mapping.
These FDA clearances and CE marks established a regulatory base and market foundation for the use of our technology in more commercially profitable markets in therapy, such as in treatment of depression and chronic neuropathic pain. In consequence, we launched an IPO to fund our entry to therapy business in 2014.
In 2014, Nexstim received CE mark for treatment of chronic neuropathic pain. In 2017 FDA cleared our system for the treatment of Major Depressive Disorder (MDD) in the United States, where we launched our technology to treatment of MDD in 2018.
Now we are in discussions with a leading California based academic institution regarding the licensing of their technology to treat patients with severe depression, who are hospitalised and may have suicidal ideation. This presents a new market opportunity for us.
What are your most important markets, segments and customers?
Our most important markets are in the United States and Europe. Additionally, we are exploring the Asian market where we already have a distributor in Hong Kong.
In the United States and Europe, we have a strong foothold in pre-surgical mapping: several top-level institutions such as Mayo Clinic, MD Anderson, UCSF, Charité Berlin and TU Munich, to mention a few, use our technology. In the therapy business we are growing our installed base in the United States. In Europe, we have several examples showing that our technology is trusted. For example, in Finland all the university hospitals are using our technology in treatment of chronic neuropathic pain and depression.
As we work in the field of pre-surgical mapping, depression and pain therapy, our most important customers are neurosurgeons, neurologists and psychiatrists.
Where do you see the company five years from now?
Five years from now Nexstim will be the new standard of care for treating a host of currently intractable brain diseases and disorders. We will have built a large therapy business with special focus on treatment resistant depression, both in outpatient clinics and hospitalised patient market. We will have entered the chronic neuropathic pain market also in the United States and we will have gained significant growth also in Asia. Regarding our pre-surgical mapping business, all the major hospitals in Europe and in the United States trust in our technology.
What are your priorities within 2020/21?
Nexstim’s main priorities are in the therapy business. We want to conclude the licensing agreement with the leading academic institution concerning the treatment resistant depression and, in addition, we will keep growing our depression therapy business, especially in the US.
We will also continue building the body of clinical evidence both in pain and depression by getting more and more patients treated with our technology.
From finance point-of-view our priority is to secure funding through 2020-2021 and build shareholder value.
Why should one consider adding your company into their portfolio?
Nexstim is a highly innovative company with leading-edge, unique technology trusted by several renowned healthcare institutions in the world. We have a massive growth potential in the depression market, especially treatment resistant depression in the US, where approximately 650 psychiatric hospitals treat an estimated 160,000 of these patients annually.
Moreover, the market in chronic neuropathic pain is large: there are about 10 million addressable neuropathic pain patients in the US and Europe. Since a large number of pain patients are without effective pain relief and opioid misuse and addiction is getting more and more common, new treatment forms, such as nTMS, are needed.