Nexstim Agrees on a Strategic Investment into a Management Services Organization of a New Jersey Based Clinic Providing Treatments for Depression Patients

Press release, Helsinki, 4 January 2024 at 9 AM (EET)

Nexstim Agrees on a Strategic Investment into a Management Services Organization of a New Jersey Based Clinic Providing Treatments for Depression Patients

Nexstim Plc (NXTMH:HEX) ("Nexstim" or "Company") group US private equity company Nexstim Investments, LLC has signed an agreement regarding a strategic alliance with and a minority ownership in a management services organization (MSO) Siddhartha Center for Clinical Neuroscience and TMS MSO, LLC. Nexstim will fund the transaction from cash on hand. The closing of this transaction was effective on 31 December 2023 and subject to customary closing conditions.

Siddhartha Center for Clinical Neuroscience and TMS MSO, LLC was organized to provide management, consulting, administrative, and other support services to Siddhartha Center for Clinical Neuroscience LLC. As part of the partnership, a Nexstim NBS 6 system has been sold and delivered to Siddhartha Center for Clinical Neuroscience LLC to be used to treat patients suffering from major depressive disorder (MDD) at the clinic in New Jersey, US. The clinic will be closely collaborating with Nexstim, providing the company with anonymous treatment data for its patient registry.

There is an increasing shift in treatment of MDD to TMS technology and the USA is the largest single country in providing TMS treatments. The reimbursement for treatment of MDD in the USA supports the growth of the TMS treatments. This investment will provide growth potential to Nexstim through its new business model.

Siddharta Nadkarni, MD, Neurologist and Psychiatrist, President of Siddhartha Center for Clinical Neuroscience commented: “We are excited about this partnership with Nexstim. At Siddhartha Center for Clinical Neuroscience, we will use Nexstim’s unique navigated transcranial magnetic stimulation to treat neurologic and psychiatric disorders such as MDD. This collaboration offers us a great new opportunity to further grow our resources to bringing the benefits of TMS treatments to as many patients as possible in the New Jersey area.”

Mikko Karvinen, CEO of Nexstim, says: “We are glad to announce positive progress on one of our key strategic objectives. Nexstim NBS 6 system enables TMS treatments for patients with major depressive disorder (MDD), and this new partnership allows us to help the clinic focus on patient treatment as much as possible while getting more information from the patient interface. We are excited about the partnership together with Dr. Nadkarni and his New Jersey based clinic as we believe this type of collaboration offers us great growth possibilities in the future. Treating MDD patients with our unique technology has already shown great results with a remission rate of about 50% based on our patient registry treatment data. We eagerly await working together with Dr. Nadkarni’s expert team to make the Nexstim treatment technology available to a growing number of patients.”