Company announcement, Helsinki, 15 October 2019 at 9.30 AM (EEST)
Nexstim Plc (NXTMH:HEX, NXTMS:STO) ("Nexstim" or "Company") – the company developing and marketing a unique brain stimulation technology for personalised treatment of major depressive disorder (MDD) – announces progress made during Q3 2019 in commercialisation of its Navigated Brain Therapy (NBT®) system.
The therapy strategy has continued to deliver good results and the company’s NBT® therapy system installed base grew to a total of 22 systems at end of September 2019. The US NBT® system installed base was a total of 8 systems and in Europe and rest of the world a total of 14 NBT® systems. The NBT® systems have been delivered to US clinics for treatment of MDD, and to hospitals and clinics in Europe and rest of the world for treatment of MDD and chronic neuropathic pain.
The growth of the NBT® system installed base has resulted in a significant increase in therapy revenues. During Jan 1 – Sep 30, 2019 therapy revenue grew by 200 percent to EUR 1.1 million (Jan 1- Sep 30, 2018: EUR 0.4 million). The total revenue including NBS system sales during Jan 1 – Sep 30, 2019 grew by 37 percent to EUR 2.0 million (Jan 1 – Sep 30, 2018: EUR 1.4 million).
As more of Nexstim’s revenue is generated from NBT® therapy business, the portion of recurring revenue is growing. Recurring revenue (total therapy sales less NBT® capital system sales) was 61 percent of the total therapy revenue during Jan 1 – Sep 30, 2019. Nexstim targets an annual revenue of approximately EUR 100 thousand per NBT® system a year in active established customer sites. During the running twelve-month period Oct 1, 2018 – Sep 30, 2019 Nexstim reached an average therapy revenue per NBT® system of EUR 81 thousand.
All the financial figures presented in this announcement are unaudited.
Martin Jamieson, Chairman and CEO, Nexstim Plc commented: "Nexstim's renewed strategy of capitalising on the significant potential of our SmartFocus® for the treatment of MDD is making good progress. We are happy to see growing number of customers trusting our unique technology which promises improved outcomes for patients with depression at a time when neuro-stimulation is rapidly gaining traction as a mainstream treatment modality. The therapy business model presents a strategic possibility for Nexstim to build a recurring revenue business targeting both a rapidly growing installed base of NBT® therapy systems with a high system utilisation rate."
Further information is available on the website www.nexstim.com, or by contacting:
Martin Jamieson, Chairman and CEO
+44 771 516 3942
martin.jamieson@nexstim.com
Sisu Partners Oy (Certified Adviser)
Jussi Majamaa
+ 358 40 842 4479
jussi.majamaa@sisupartners.com
About Nexstim Plc
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® technology is used in Nexstim’s proprietary Navigated Brain Therapy (NBT®) system, which is FDA cleared for marketing and commercial distribution for the treatment of major depressive disorder (MDD) in the United States. In Europe, the NBT® system is CE marked for the treatment of major depression and chronic neuropathic pain.
In addition, Nexstim is commercializing its SmartFocus® based Navigated Brain Stimulation (NBS) system for diagnostic applications. The NBS system is the only FDA cleared and CE marked navigated TMS system for pre-surgical mapping of the speech and motor cortices of the brain. Nexstim shares are listed on the Nasdaq First North Growth Market Finland and Nasdaq First North Growth Market Sweden.