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Summary of Highlights
Neuronetics Inc., Brainsway's main competitor, filed an IPO on 31 May, 2018. Its public valuation was released on 27 June. The company has raised $94M by issuing 5.5 million shares at $17 per share, above the expected range of between $14 and $16 per share.
Neuronetics Inc. is a commercial stage medical device company focused on designing, developing and marketing products that treat patients who suffer from psychiatric disorders, namely depression and anxiety.
- The global anxiety disorders and depression treatment market is expected to be valued at $18.3 billion by 2025.
- Neuronetics has identified Japan, the EU and the US as its key target markets, and is witnessing increasing revenues in these geographies.
Neuronetics' market value is priced at $326 million; its enterprise value is estimated at $252 million
To date, Neuronetics has 781 installed systems and runs solely under a lease-based business model, generating $40.4M in 2017, i.e. $52,000 per system leased. Thus, we calculate a "system multiple" of $323,000.
We assume Brainsway currently has 360 systems leased (400 systems by the end of 2018). 360 systems at $323,000 a piece yields an enterprise value of $116.3 million enterprise value. In our previous valuation we evaluated Brainsway at $118 million.
Neuronetics' IPO provides for a benchmark of a similar company operating in a market with higher liquidity
Read the full report here.
About the company - Brainsway Ltd. (Brainsway or "the Company") is an Israeli medical device firm focused on the development and commercialization of an H-coil helmet device for Deep Transcranial Magnetic Stimulation (dTMS). dTMS enables non-invasive activation of deep brain structures that can cover a broad range of brain disorders. The company has FDA market approval for Major Depressive Disorder, and wide reimbursement coverage for this indication. The company has recently received positive results in Obsessive Compulsive Disorder (OCD) patients, and will apply for market approval in the US for this indication. Approximately 15,000 patients were treated to date with Brainsway's device. please click here (https://ww2.frost.com/research/equity-research/)
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