Yahoo Finance BrainsWay (BWAY) Inks Distribution Agreement to Expand Foothold
BrainsWay Ltd. BWAY recently signed an exclusive multi-year distribution agreement with a specialty distributor serving both the acute hospital and non-acute healthcare spaces in Canada. The deal will enable the company to make a broad market entry into Canada for its proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) system.
The agreement includes minimum quantity orders, which are likely to increase successively over several years, starting with 11 Deep TMS systems to be ordered in 2024.
BrainsWay’s unique therapeutic solution, Deep TMS, is currently cleared in Canada to treat major depressive disorder (MDD) and obsessive-compulsive disorder (OCD).
The latest agreement is expected to provide a significant boost to BrainsWay’s business and expand its global footprint.
Rationale Behind the Agreement
Per the World Health Organization (WHO), depression affects approximately 264 million people worldwide. Additionally, WHO considers OCD to be one of the top 10 debilitating medical conditions associated with a decreased quality of life and loss of income.
Per management, a significant mental health crisis is prevalent in Canada, with the current existence of a substantial barrier to treatment. One in two Canadians have, or have had, a mental illness by the time they reach 40 years of age and only half of Canadians experiencing a major depressive episode receive potentially adequate care. Management believes that Deep TMS will likely prove to be a transformational treatment option for Canadian patients.
Industry Prospects
Per a report by Grand View Research, the global TMS system market was estimated at $1.13 billion in 2022 and is anticipated to witness a CAGR of 9% between 2023 and 2030. Factors like technological advancements and the increasing incidence rate of Alzheimer's disease, Parkinson's disease and other neurological conditions are likely to drive the market.
Given the market potential, the latest multi-year distribution agreement is expected to provide a significant boost to BrainsWay’s business globally.
Recent Developments
This month, BrainsWay announced the initiation of a prospective, randomized, controlled, multicenter clinical trial evaluating an accelerated treatment protocol for its proprietary Deep TMS system to treat MDD.
The same month, BrainsWay received the FDA’s expanded indication for its Deep TMS, allowing for the treatment of patients with MDD aged between 22 and 86, changing the previous upper age limit of 68.
Last month, BrainsWay reported its first-quarter 2024 results, wherein it recorded a robust uptick in revenues. During the quarter, the company shipped a net total of 57 Deep TMS systems, bringing its installed base to 1,158 total systems as of Mar 31, 2024, a 24% increase from the installed base at the same point in the prior year.
The company also shipped 31 OCD coils as add-on helmets to certain of its new and existing systems, representing OCD treatment capability on 50% of its total installed base. BWAY also installed the 11th Deep TMS system in Israel, where it is steadily increasing its presence following the recent increase in the country’s reimbursement rates.
Price Performance
Shares of BrainsWay have gained 172.5% in the past year against the industry’s 1.9% decline. The S&P 500 has witnessed 24.9% growth in the said time frame.
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Zacks Rank & Key Picks
Currently, BrainsWay carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, Boston Scientific Corporation BSX and Ecolab Inc. ECL.
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have gained 45.3% compared with the industry’s 16% rise in the past year.
Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average being 7.5%.
Boston Scientific has gained 41.2% against the industry’s 1.9% decline in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 14.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.3%.
Ecolab’s shares have rallied 34.7% against the industry’s 10.8% decline in the past year.
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