MALVERN, Pa. - Neuronetics , Inc. (NASDAQ: NASDAQ:STIM), a medical technology company, announced its participation in the American Academy of Child and Adolescent Psychiatry (AACAP) Annual Meeting in Seattle, WA, starting today and continuing through October 19th. The company will showcase its NeuroStar Transcranial Magnetic Stimulation (TMS) System, including an oral presentation by Dr. Paul E. Croarkin on October 16th.
The presentation will focus on the largest sample to date of adolescents and young adults with major depressive disorder (MDD) treated with TMS, emphasizing the treatment's benefits for depressive symptoms and anxiety. The data suggest a 78% response rate and a 48% remission rate among the analyzed adolescent patients, with an average improvement of over 10 points in depression symptoms measured by the Patient Health Questionnaire-9 (PHQ-9).
Cory Anderson, Senior Vice President of Research & Development and Clinical at Neuronetics, highlighted the importance of the NeuroStar TMS System for young patients with limited approved treatment options. NeuroStar is FDA-cleared to treat adolescents aged 15 and older as a first-line adjunct treatment for MDD.
Dr. Melissa Fickey, an AACAP member and board-certified child, adolescent, and adult psychiatrist, reinforced the positive clinical outcomes observed since the FDA clearance of NeuroStar for adolescents earlier this year.
Neuronetics emphasizes mental health's parity with physical health and aims to redefine patient and physician expectations with its non-drug, noninvasive NeuroStar Advanced Therapy for Mental Health. The therapy is also FDA-cleared as an adjunct for adults with obsessive-compulsive disorder and for adolescent patients aged 15-21 with MDD.
The company will also demonstrate the NeuroStar TMS System at booth #416 during the AACAP meeting. For more information on NeuroStar TMS Therapy, interested parties can visit the company's website.
This article is based on a press release statement.
"In other recent news, Neuronetics, a medical device company, reported a second-quarter revenue of $16.5 million, falling short of both the firm's estimate and the company's own guidance range. This shortfall was attributed to altered purchasing patterns influenced by the Change Health cyberattack. Despite this, Neuronetics observed an 18% growth in utilization of local consumables, signaling robust demand for its treatments. In response to these financial results, the company experienced a downgrade in stock rating from Outperform to Market Perform by William Blair.
Simultaneously, Neuronetics is preparing for a merger with Greenbrook TMS, expected to generate revenue and cost synergies, and push the company towards sustained profitability from 2025. This merger is anticipated to streamline operations, potentially extend insurance payor contracts to other customers, and boost brand recognition for NeuroStar TMS therapy.
In an effort to increase therapy awareness, Neuronetics is investing in its Better Me Guarantee Program and launching a television advertising campaign in Tampa Bay, Florida. Despite recent challenges, the company reaffirmed its full-year 2024 revenue guidance, which remains set between $78 million and $80 million, reflecting the strategic steps Neuronetics is taking to navigate current challenges, with a goal of achieving positive cash flow in 2025."
InvestingPro Insights
As Neuronetics, Inc. (NASDAQ: STIM) showcases its NeuroStar TMS System at the AACAP Annual Meeting, investors may be interested in the company's financial health and market performance. According to InvestingPro data, Neuronetics has a market capitalization of $27.57 million USD, reflecting its position as a smaller player in the medical technology sector.
The company's revenue for the last twelve months as of Q2 2023 stood at $72.06 million USD, with a revenue growth of 6.22% over the same period. This growth aligns with the company's efforts to expand its market presence and clinical applications for the NeuroStar TMS System.
InvestingPro Tips highlight that Neuronetics has seen a significant return over the last week, with a 13.75% price total return, and a strong return of 24.49% over the last month. This recent positive momentum could be attributed to growing interest in the company's innovative treatment for depression, particularly following its FDA clearance for adolescent use.
However, it's worth noting that the stock price has fallen significantly over the last three months, with a -51.34% price total return. This volatility is consistent with another InvestingPro Tip indicating that the stock generally trades with high price volatility.
For investors considering Neuronetics, it's important to be aware that analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months. The company's operating income for the last twelve months as of Q2 2023 was -$26.66 million USD, underscoring the challenges it faces in achieving profitability.
These insights provide a snapshot of Neuronetics' financial situation as it continues to develop and promote its NeuroStar TMS System. Investors interested in a more comprehensive analysis can access additional tips and data through InvestingPro, which offers 12 more tips for STIM.
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