Nexstim is well placed to benefit from the novel accelerated rTMS (transcranial magnetic stimulation) therapy protocols being developed for severe depression and chronic neuropathic pain. Its accurately navigated SmartFocus TMS NBT technology could provide the precision and reproducibility required for clinical success. Promising data, expected in Q121, from the ongoing pilot study in severe depression would guide the format of a proposed double-blind multi-centre trial. Success would open sizeable new treatment opportunities for the NBT platform. Revenues from both NBT and NBS diagnostic systems have proven to be remarkably resilient during the COVID-19 pandemic which, coupled with careful cost control, suggests FY20 results will be in line with our forecasts. Strategic delivery prompts us to upgrade our valuation to €38.4m (€0.09/share), with room for further upside.
