Nexstim invests in a clinic network management services organization

Translation: Original comment published in Finnish on 1/4/2024 at 10:37 am EET

Nexstim announced its subsidiary’s strategic investment in a US-based TMS clinic management services organization on Thursday. The contract includes delivery of an NBS6 system to the clinic. The investment is a continuation of the launch of a new operating model established some 2 years ago. The size of the investment was not commented on. The news supports our 2024 growth forecasts and we see no immediate need for revisions with the news.

A step forward on the expected clinic network expansion path

Nexstim announced its first investment in the US TMS clinic service network at the end of 2021. The announcement was followed by news of a private equity company being established in early 2022. This private equity firm has now made a strategic investment in a TMS clinic management services organization in New Jersey, USA. The investment means a strategic partnership with the clinic and Nexstim’s minority holding in the company serving the clinic. The size of the investment or holding is not specified in the press release. The service company provides the clinic administrative and professional services as well as consulting. As part of the agreement, Nexstim has sold and delivered an NBS6 system. The agreement was concluded on the last day of 2023, so we will receive more detailed information about the size of the agreement in connection with the financial statements.

Growth expectations for 2024

We updated our view on Nexstim’s share in connection with the guidance revision on Wednesday. We expect strong growth from the company during 2024, which consists mainly of system sales, but also of the expansion of the clinic network and licensing income starting in H2’24. We believe that the announced investment is positive news and it seems relatively small in size. Therefore, we do not see immediate pressure for forecasting changes for now.