Translation: Original comment published in Finnish on 12/05/2023 at 6:33 am EET

Nexstim announced on Monday that new functionalities have been developed for its NBS5 system. We believe these functionalities enable the use of the NBS5 system together with the partner company's EEG equipment, which enables new research solutions in Europe. The solution cannot at least yet be used to treat patients because it lacks CE marking and FDA authorization. In the longer term, approvals for patient use could expand the use of Nexstim’s technology.

The new module combines TMS stimulation and EEG measurement

The company announced it delivered its first research system module as part of Nexstim NBS. The module includes software that enables the TMS hardware to deliver electromagnetic paired pulses. The pulses can be accurately targeted to a specific brain area with Nexstim’s system, as in other applications. Pulses alter the electrical activity of the brain, which can be measured by electroencephalogram (EEG). Another new functionality of the module is real-time visualization of the collected EEG data with a graphical user interface. The user can thus target the TMS pulse with Nexstim’s system and read its EEG effects on the same screen. EEG data is measured with the partner company’s system, which is used in an integrated way with NBS. Thus, the new module combines TMS stimulation and EEG measurement into one integrated solution that can be utilized in research.

Approvals for patient use could increase competitiveness

The new solution is currently only for research use in the absence of CE marking and or FDA authorization. The economic impact of the solution is naturally positive, as the release announced additional module deliveries later this year. The news, therefore, support our H2’23 growth forecasts. We estimate the size of sales to be fairly limited at this stage relative to Nexstim’s business as a whole. We believe that the company will also strive to obtain a solution for clinical use, which may take time due to the early development stage of the technology and how long it takes authorities to process applications. We estimate that in clinical use, the solution could expand the use of Nexstim’s technology.