Several competitors’ devices have already been able to treat OCD, so there are clear practices for it. This new approval just brings more versatile use for Nexstim’s therapy device.
In itself, the company’s disclosure policy on future approvals is interesting and understandable in the long run. There was no prior information about either post-stroke rehabilitation or OCD, and the reason is certainly that they don’t want to give information to competitors. For example, regarding post-stroke rehabilitation, they will certainly be able to operate in their own niche for a long time, as competitors may not have even considered the entire indication.
Many other companies announce permit processes well in advance along the way, and future FDA permits are priced into the company’s valuation during the permit process through investor speculation. At Nexstim, these seem to come out with a press release only when the permit has been obtained, and the share price then reacts as it reacts.
This year, new permits have been obtained:
NBS 6 sales permit to the United Arab Emirates
NBS 6 therapy for post-stroke rehabilitation
NBS 6 therapy for obsessive-compulsive disorder
Share price since the beginning of this year -38.87%