BURLINGTON, Mass. and JERUSALEM, Israel - BrainsWay Ltd. (NASDAQ & TASE: BWAY), a company specializing in noninvasive neurostimulation treatments, announced today that its Deep Transcranial Magnetic Stimulation (Deep TMS) therapy will now be reimbursed for eligible PTSD patients at Israeli public hospitals. This decision by the Israel Ministry of Defense's Rehabilitation Department follows increased concerns over PTSD in the wake of recent conflicts.
The approval for reimbursement represents a significant development for those affected by PTSD, especially considering the heightened focus on mental health after the October 7th attacks and subsequent war in Gaza. BrainsWay aims to extend reimbursement coverage to more medical centers and potentially to private clinics.
A recent study involving military veterans showed that Deep TMS treatment led to a substantial reduction in PTSD symptoms, depression, and suicidal ideation. While Deep TMS is FDA-cleared for other disorders, it is not yet approved for PTSD in the United States. However, the Israeli reimbursement approval is expected to aid in gathering further data, which could support future applications.
BrainsWay, established in 2003, is recognized for its proprietary Deep TMS technology, with FDA clearance for treating major depressive disorder, obsessive-compulsive disorder, and smoking addiction. The company is actively conducting clinical trials for Deep TMS in various psychiatric, neurological, and addiction disorders.
The reimbursement in Israel is likely to facilitate the collection of additional data on the efficacy and safety of Deep TMS for PTSD, potentially aiding in broader applications. However, it's important to note that forward-looking statements from the company, such as potential outcomes and future plans, are subject to a number of factors and uncertainties that could cause actual results to differ.
This news is based on a press release statement from BrainsWay and does not reflect any endorsement of claims. The information presented is intended for factual reporting only.
In other recent news, BrainsWay Ltd. has reported a significant 37% year-over-year revenue increase in Q1 2024, marking the second consecutive quarter of positive net income. This financial strength was further highlighted by the shipment of 57 Deep Transcranial Magnetic Stimulation (Deep TMS) systems during the same period. The company also confirmed its revenue guidance for the full year 2024 to be between $37 million and $40 million, indicating a growth of 16% to 26% from the previous year's revenue.
In addition to these financial developments, BrainsWay has recently appointed Dr. Richard A. Bermudes as its new Chief Medical Officer. Dr. Bermudes brings over two decades of experience in brain stimulation therapies, including Transcranial Magnetic Stimulation (TMS), to the company.
In terms of market expansion, BrainsWay has recently entered the Canadian healthcare sector through an exclusive distribution agreement, with plans to deliver a minimum of 11 Deep TMS systems in 2024. The FDA has also expanded the age range for BrainsWay's Deep TMS system, now allowing it to be administered to patients aged 22 to 86 with major depressive disorder.
These recent developments indicate BrainsWay's continued commitment to advancing neuroscience and broadening access to its Deep TMS technology globally.
InvestingPro Insights
BrainsWay Ltd. (NASDAQ & TASE: BWAY) has recently garnered attention with its breakthrough in PTSD treatment reimbursement in Israeli public hospitals. As the company navigates this significant milestone, financial metrics and expert analysis from InvestingPro offer additional insights into its market performance and valuation.
According to InvestingPro data, BrainsWay's market capitalization stands at a modest $126.43 million, reflecting its niche position in the neurostimulation market. Despite the company's innovative approach to mental health treatment, investors are paying a premium for potential growth, with a high price-to-earnings (P/E) ratio of 203.03. This valuation is further emphasized by an adjusted P/E ratio of 207.47 for the last twelve months as of Q2 2024, indicating market optimism about the company's future earnings.
InvestingPro Tips highlight that while BrainsWay is trading at a high earnings multiple and a high P/E ratio relative to near-term earnings growth, it holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Additionally, the company's liquid assets exceed short-term obligations, providing further assurance of its ability to meet financial commitments.
With a noteworthy return of 109.07% over the last year, BrainsWay's stock performance has been robust, reflecting investor confidence in its technologies and market potential. The company's revenue growth also remains impressive, with a 42.0% increase over the last twelve months as of Q2 2024, which may be a key factor in its high valuation multiples.
For investors and analysts seeking a deeper dive into BrainsWay's financials and market potential, InvestingPro offers additional tips and data. Currently, there are 12 more InvestingPro Tips available for BWAY at https://www.investing.com/pro/BWAY, providing a comprehensive analysis that can guide investment decisions.
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