On Brainsway: I Was Wrong

Two years ago my internet friend Nomad called my attention to Brainsway Ltd. (TASE:BRIN). The company had one product - a kind of magnet that was said to produce electrical changes deep in the brain, curing depression. It seemed to me like a repeat of Mesmer and its followers, another shiny but phony medical electronic instrument. But I was wrong: Today the company announced success in the clinical trial of its Deep TMS (transcranial magnetic stimulation) for the treatment of depression. Brainsway's share rose 12.3% by early afternoon to NIS 13.90. (pic: CEO).


56 patients participated in the trial, which was conducted at Hadassah Medical Organization in Jerusalem and Beer Yaakov Mental Health Center. The final results of the safety and effectiveness study found that of the 22 of the 45 patients who completed at least ten treatments showed statistically significant improvement and 13 patients achieved full recovery. One patient had a brief epileptic episode during treatment, while some patients reported slight headaches, mostly during the first treatments. Brainsway said that the results mean that Deep TMS is a safe and effective treatment for depression.

Brainsway is simultaneously conducting a number of trials of Deep TMS on a number of neurological disorders. Earlier this week, the Veterans Administration Medical Center of Los Angeles announced that it will try to treat attention deficit disorder (ADD) with Deep TMS. In June, the Ministry of Health approved a trial of the system to helping chronic lung disease patients quit smoking. In April, the US National Institute on Drug Abuse (NIDA) announced that it conduct an effectiveness of Deep TMS for the treatment of cocaine addiction. In February, the Veterans Administration Pittsburgh Medical Center announced a trial of the system for the treatment of obesity. Charite University Hospital in Berlin will test the device for the treatment of multiple sclerosis. In June, the Ministry of Health approved a trial of the system to helping chronic lung disease patients quit smoking.

If this thing works even a little and it is safe, doctors and clinics will run to buy the new shiny electronic machine to install them in their offices. The business potential is enormous.

This note on how I missed earning a lot of money is against future overconfidence. I can be very wrong. Still, regarding BRIN, I have not made up my mind.