Brainsway sees growth in depression treatment, looks to new areas
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[March 25, 2014]
By Ari Rabinovitch
— Israeli medical device
maker Brainsway expects strong growth following the launch of its
treatment of depression and hopes to access new markets once its
system finishes trials in treating a number of other diseases.
Brainsway developed a helmet that shoots magnetic
pulses into the brain of patients with neurological disorders. The
pulses stimulate neurons and improve function in the affected areas,
the company says.
This method, known as transcranial magnetic stimulation, is like a
tamer, safer and more precise version of electro-shock therapy and
has been used for years.
Brainsway says its technology is unique because it can penetrate
deeper than any other non-invasive method being used, allowing it to
target areas of the brain that were until now unreachable.
The company has installed over 70 of its units, mostly in the United
States, and on Tuesday reported that 2013 revenue grew to 4.29
million shekels ($1.23 million) from 1.36 million in 2012. Net loss
from regular operations in 2013 narrowed to 15.41 million shekels
from 21.22 million.
The company raised $11.8 million this month to boost production
"We hope this trend will continue and even get stronger," Chief
Executive Uzi Sofer told Reuters in an interview. "The company is
aiming for thousands of installations for different diseases in the
Brainsway received Federal Drug Administration approval last year
for treating patients with major depression disorder. Other trials
are underway for fighting diseases like Parkinson's and Alzheimer's,
addictions, and stress and eating disorders.
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Sofer said he is already optimistic about a study being done at
Harvard University on whether Brainsway's system can help with
Ronen Segal, chief technical officer, said "many of the big players
in this market, including medical device companies and even
pharmaceutical companies" have taken notice and that there is
potential for collaboration in areas like distribution and research
(Editing by Tova Cohen)
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