Nexstim plans an Initial Public Offering on NASDAQ OMX First North

Nexstim Oy (“Nexstim” or “Company”), a medical technology company aiming to improve rehabilitation for stroke patients through the use of non-invasive brain stimulation, announces its intention to proceed with an Initial Public Offering of Nexstim on NASDAQ OMX First North Finland and NASDAQ OMX First North Sweden (“Admission”). It is expected that the Admission will occur in the 4^th Quarter of 2014.

Nexstim has developed a technology which allows a non-invasive targeting of a specific area of the brain with high accuracy. Nexstim has pioneered the technology as a diagnostic tool for brain surgery planning with its Navigated Brain Stimulation (NBS) System. The NBS System is the first and only FDA cleared and CE marked device utilizing so-called navigated transcranial magnetic stimulation (nTMS) for mapping of the motor and speech cortices. 

Based on the same technology platform the Company has developed a device for stroke therapy called Navigated Brain Therapy (NBT®), which focuses stimulation on targeted locations in the brain to enhance and accelerate stroke rehabilitation by removing natural barriers for recovery. The NBT® System was tested in a Phase II proof of concept study in 29 post-acute stroke patients to study the effect on hand and arm function in connection with rehabilitation. The patients were randomized into two groups of which a group of 19 patients received NBT® therapy and a group of 10 patients received sham (placebo) treatment. Out of the group receiving NBT® treatment, 84% of the patients showed a clinically important improvement in motor function of the upper extremity six months after treatment compared to 50% in the sham group.  The difference was statistically significant (p<0.05).

Nexstim has earlier this year initiated a two-year clinical Phase III study at 12 prominent rehabilitation sites in the US, aiming to demonstrate the effectiveness of the NBT® System and to obtain an FDA clearance for marketing the device for post-acute stroke treatment in the US.

Each year, more than two million patients have a stroke in the US and Europe and the annual cost to the society are estimated to be USD36bn and EUR42bn respectively. Of these patients, Nexstim intends to target the 0.7 million patients in need of an effective rehabilitation method for motor function disability, the most common disorder following a stroke. The Company estimates that this potential market is worth approximately USD 1.8bn in annual sales. In the future, the Company intends to investigate the applicability of its technology platform also in other indications within stroke and, for example, in pain and tinnitus.

The Company’s major shareholders are HealthCap, the Finnish Innovation Fund Sitra, Capricorn Health-Tech Fund, Life Science Partners (LSP) and Lundbeckfond Ventures.

Pareto Securities has been appointed Lead Financial Adviser and Joint Arranger and UB Securities has been appointed Financial Co-Adviser and Joint Arranger in connection with the contemplated IPO.

Commenting on today’s announcement, Janne Huhtala, CEO of Nexstim, said: “Nexstim’s board of directors has decided that now could be an appropriate time to broaden the shareholder base and to apply for the listing of the Company’s shares on First North Finland and First North Sweden. The initial public offering is expected to support Nexstim in the next development stage through to the end of the ongoing Phase III study and the potential FDA clearance for the use of its NBT® System in stroke therapy, expected to take place at the end of 2016. We thank our shareholders and staff for their continued support as we strive to create a novel therapy for stroke sufferers in this significant international market.”