Brainsway Ltd., a maker of medical devices for brain disorders, advanced the most in more than eight months after the U.S. Food and Drug Administration approved its device for treating depression.
Shares of the Jerusalem-based company surged 16 percent, the most since April, to 38.45 shekels as of the close of trading in Tel Aviv, giving the company a market value of 481.6 million shekels ($127 million). Trading volume was more than 16 times the three-month daily average.
The company, which has European regulatory approval for the use of its flagship Deep TMS system to alleviate depression, bipolar disorder and schizophrenia, received approval for marketing its system in the U.S. for the treatment of depression patients who failed to recover following drug treatment, Brainsway said in a filing with the Tel Aviv Stock Exchange. The potential market in the U.S. is worth “tens of billions of dollars,” the company said.
Brainsway is examining its marketing and distribution options for the device in the U.S. and worldwide, including potential partnerships with leading companies in the field, it said. Other potential applications for the treatment range from cocaine addiction to obesity and Alzheimer’s disease, according to Brainsway.
Brainsway uses a coil device, placed on the patient’s head, to produce directed electromagnetic fields that can induce excitation or inhibition of neurons deep inside the brain, according to the company’s website.