June 19 (Bloomberg) -- Brainsway Ltd., the developer of a magnetic device for treating neurological conditions, said a U.S. company will help the Israeli manufacturer market the product in that country.
The undisclosed partner will be allowed to approach potential customers of the Deep TMS system as specified by Brainsway in the agreement, the Jerusalem-based manufacturer said today in a Tel Aviv Stock Exchange filing. Brainsway will continue to market the device to other U.S. customers directly and already has “some direct-lease agreements,” Chief Executive Officer Uzi Sofer said.
The U.S. Food and Drug Administration and regulator Health Canada approved Deep TMS in January for use on patients who fail to respond to or can’t tolerate antidepressants. Sofer said in an interview at the time that a marketing accord was planned in the first quarter, possibly including a “large” upfront payment. Brainsway didn’t outline financial terms today.
The marketing agreement “is a part of our wider effort to focus on expanding our activities in the U.S.,” Sofer said in a telephone interview. “We will simultaneously continue with our direct sales to U.S. customers.”
The partner will work to lease about 200 devices over as many as three years for use in the U.S., Brainsway said. Sofer declined to specify any combined targets for his company and the U.S. marketer, why the agreement isn’t nationwide or whether Brainsway is in talks with other potential partners.
Brainsway rose 0.9 percent to 56.47 shekels at the close in Tel Aviv, valuing the company at 719 million shekels ($200 million). The stock, which has fallen about 22 percent from its record high of 71.80 shekels on Feb. 10, has still more than doubled since the beginning of 2013.
The Deep TMS System uses a coil placed against the patient’s head to apply brief magnetic pulses to the brain, a process known as transcranial magnetic stimulation. Patients are treated five times a week for four weeks, with each session lasting about 20 minutes.
The company is counting on the technology’s appeal to psychiatrists and patients as a treatment for depression that eliminates the need for surgery or pharmaceuticals that typically must be taken for life.
The device received European Union product-safety clearance in late May for treating Alzheimer’s disease and autism as well as for use by people quitting cigarette smoking.
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