Company announcement, Helsinki, 16 August 2016, at 9:00 am
Nexstim Plc (NXTMH:HEX, NXTMS:STO), a medical technology company with a pioneering navigated non-invasive brain stimulation system, provides and update on its strategy and financial guidance.
The Company strategy is to focus on receiving US regulatory approval and prepare for commercialisation for its navigated transcranial magnetic stimulation (nTMS) technology in the major therapeutic applications of post-acute stroke, depression and chronic pain. Growth through partner agreements will be targeted from the major geographic territories of Europe, USA and Asia. The Pre-surgical mapping (PSM) business will adopt a distributor model to deliver further growth.
Due to the changes in the strategy the Company will streamline the organisation both in the US and Finland targeting total annual savings of EUR 2.3 million. The PSM business will immediately prepare to adopt a distributor model in the US.
Updated Future Outlook Due to the switch into distributor model in the US, the Company estimates that its net sales will decrease during financial year 2016. Due to lower level of operational expenses, loss for financial year 2016 is expected to be less than for the financial year 2015.
This updated future outlook replaces the previous financial guidance given on 28 February 2016, in which the Company estimated that its net sales would grow during financial year 2016 and loss was expected for the financial year.
Combined with the long-term financing arrangements in the form of a joint deal with Bracknor and Sitra, announced on 21 July 2016, the Company estimates funding to last until the beginning of financial year 2018. Financing arrangements are subject to approval at Nexstim's EGM on 18 August 2016 and granting of required authorisations.
Martin Jamieson, Chairman and CEO of Nexstim, commented: "This updated strategy and the alignment of the organization better focuses Nexstim towards the high value commercialisation of Navigated Brain Therapy (NBT®) in Europe, USA and Asia. This change will also enable us to further secure our funding for the FDA 510(k) De Novo regulatory approval process for NBT® in the US which is where we believe the greatest opportunity for Nexstim lies."
NEXSTIM PLC Martin Jamieson, Chairman & CEO
Further information is available on the website www.nexstim.com or by contacting:
Nexstim +447715163942 Martin Jamieson, Chairman & CEO martin.jamieson@nexstim.com UB Securities Oy (Certified Adviser) +358 (0)9 2538 0246
Consilium Strategic Communications +44 (0)20 3709 5700 Mary-Jane Elliott / Ivar Milligan / Laura Thornton nexstim@consilium-comms.com
About Nexstim Plc Nexstim is a medical technology company which has pioneered its technology in brain diagnostics with the Navigated Brain Stimulation (NBS) system as the first and only FDA-cleared and CE-marked navigated Transcranial Magnetic Stimulation (nTMS) system for pre-surgical mapping of the motor and speech cortices. Based on the same technology platform, the company has developed a system called Navigated Brain Therapy (NBT®) which is CE-marked for chronic neuropathic pain, major depression and stroke therapy. Nexstim's shares are listed on Nasdaq First North Finland and Nasdaq First North Sweden. For more information please visit www.nexstim.com
HUG#2035364
