Translation: Original published in Finnish on 12/29/2025 at 8:07 am EET.

Nexstim announced on Tuesday that it had agreed with Sinaptica Therapeutics on the next phase of their exclusivity agreement. The agreement ensures continued cooperation until 2026, but the payment arrangement has shifted from an original cash-based plan to one weighted toward convertible debt. This structural revision weighs negatively on our 2025 estimates, even though the progress of this strategically important collaboration is positive for the company. We will reevaluate our estimates after the end of the year.

Cooperation moves to next stage with modified payment structure emphasizing convertible debt

Nexstim announced on Tuesday that it is moving into the next phase of its exclusivity agreement with US-based Sinaptica Therapeutics. This agreement will fulfill Sinaptica's payment obligations contemplated under the exclusivity agreement, enabling the partnership to continue through 2026. The exclusivity term extending past 2026 is subject to the definitive agreement, planned for signing before the end of 2026.

The original exclusivity was conditional to Nexstim receiving 1.5 MEUR in payments. Under the new arrangement, this payment obligation will be fulfilled through Nexstim receiving a total of 0.5 MEUR in cash (of which 0.2 MEUR has already been received and 0.3 MEUR will be received now) and 1.0 MEUR in convertible debt. Nexstim estimates that the agreement will have a positive cash impact of 0.3 MEUR and an earnings impact of 0.1 MEUR in H2 of 2025. In our view, this change reflects Sinaptica's need to optimize its cash flow ahead of its upcoming financing round and Phase 3 clinical trial.

We had expected the Sinaptica collaboration to proceed according to the original roadmap and had included in our forecasts the assumption that the remaining payments of approximately 1.3 MEUR would be recognized in the second half of 2025. The announced 0.1 MEUR earnings impact for H2’25 is clearly below our previous estimate. Consequently, our earnings estimates for 2025 are under downward pressure following the announcement, although our forecasts are also affected by deals that will be completed by the end of the year. We will therefore reevaluate our estimates as a whole after the end of the year.

Despite the change in the financial structure of the agreement, the continuation of the cooperation is positive for Nexstim. Sinaptica is currently preparing for a pivotal randomized Phase 3 clinical trial for the treatment of Alzheimer's disease. If the project is successful, it offers Nexstim significant long-term potential in the form of system sales and royalties as part of a planned 10-year global exclusivity agreement. The next critical milestone in the cooperation is the negotiation and signing of final agreements by the end of 2026.