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Neuronetics' (STIM) FDA-Cleared NeuroStar to Aid in Depression
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Neuronetics, Inc. (STIM - Free Report) recently announced the FDA 510(k) clearance of NeuroStar Advanced Therapy for usage as a supplement to treat major depressive disorder (MDD) in adolescents aged between 15 and 21 years.
NeuroStar is the first and only FDA-approved transcranial magnetic stimulation (TMS) treatment available for this age group. TMS is a non-invasive procedure that uses magnetic fields to stimulate nerve cells in the brain to improve symptoms of major depression.
Price Performance
In the past six months, STIM’s shares have rallied 263.4% compared with the industry’s rise of 22.4%. The S&P 500 has gained 22.1% in the same time frame.
Image Source: Zacks Investment Research
More on the News
Since the COVID-19 epidemic, the prevalence of depression among teenagers and young adults has increased. When compared to adult therapy alternatives, the existing options for teenagers' treatment are on the lower side.
NeuroStar's TMS therapy presents a promising first-line treatment option for adolescents with remarkable response rates that are comparable to adult response rates and real-world evidence. This development may lead to a shift in the way that depression in young people is treated.
The FDA's decision to approve this new indication was partially based on an analysis of real-world data obtained using NeuroStar's own TrakStar technology. Important information about the safety and efficacy of the treatment for teenagers was made available by this platform. However, 78% of the 1,169 teenagers whose depression severity was analyzed in the study saw a clinically significant improvement.
The FDA determined that NeuroStar TMS was significantly safer and more effective when used as an adjuvant to antidepressant therapy in this population after reviewing the extensive data set from TrakStar and clinical data from the published literature.
By utilizing the flexibility of its coil architecture, NeuroStar is empowering clinicians to promptly attend to the treatment requirements of teenagers experiencing symptoms of MDD without necessitating extra hardware purchases or modifications.
Industry Prospects
Per a report by Mordor Intelligence, the global anxiety disorders and depression treatment market size is valued at $21.5 billion in 2024 and is expected to reach more than $27.9 billion by 2029 at a growth rate of 5.3%.
It is anticipated that factors including the rising incidence of depression and anxiety disorders, rising awareness, and new product releases by major industry participants are expected to boost market growth.
Given the market potential for the treatment of depression, FDA clearance of NeuroStar Advanced Therapy is likely to boost the Neuronetics business and increase revenues.
Notable Developments
Neuronetics recently announced that it has entered into an expanded commercial partnership with Transformations Care Network, a mental health care provider. This partnership marks a significant advancement in the field of mental health treatment, particularly for patients suffering from MDD and treatment-resistant depression.
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.
Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.
Cencora, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have surged 51.5% compared with the industry’s 3.6% rise in the past year.
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Neuronetics' (STIM) FDA-Cleared NeuroStar to Aid in Depression
Neuronetics, Inc. (STIM - Free Report) recently announced the FDA 510(k) clearance of NeuroStar Advanced Therapy for usage as a supplement to treat major depressive disorder (MDD) in adolescents aged between 15 and 21 years.
NeuroStar is the first and only FDA-approved transcranial magnetic stimulation (TMS) treatment available for this age group. TMS is a non-invasive procedure that uses magnetic fields to stimulate nerve cells in the brain to improve symptoms of major depression.
Price Performance
In the past six months, STIM’s shares have rallied 263.4% compared with the industry’s rise of 22.4%. The S&P 500 has gained 22.1% in the same time frame.
Image Source: Zacks Investment Research
More on the News
Since the COVID-19 epidemic, the prevalence of depression among teenagers and young adults has increased. When compared to adult therapy alternatives, the existing options for teenagers' treatment are on the lower side.
NeuroStar's TMS therapy presents a promising first-line treatment option for adolescents with remarkable response rates that are comparable to adult response rates and real-world evidence. This development may lead to a shift in the way that depression in young people is treated.
The FDA's decision to approve this new indication was partially based on an analysis of real-world data obtained using NeuroStar's own TrakStar technology. Important information about the safety and efficacy of the treatment for teenagers was made available by this platform. However, 78% of the 1,169 teenagers whose depression severity was analyzed in the study saw a clinically significant improvement.
The FDA determined that NeuroStar TMS was significantly safer and more effective when used as an adjuvant to antidepressant therapy in this population after reviewing the extensive data set from TrakStar and clinical data from the published literature.
By utilizing the flexibility of its coil architecture, NeuroStar is empowering clinicians to promptly attend to the treatment requirements of teenagers experiencing symptoms of MDD without necessitating extra hardware purchases or modifications.
Industry Prospects
Per a report by Mordor Intelligence, the global anxiety disorders and depression treatment market size is valued at $21.5 billion in 2024 and is expected to reach more than $27.9 billion by 2029 at a growth rate of 5.3%.
It is anticipated that factors including the rising incidence of depression and anxiety disorders, rising awareness, and new product releases by major industry participants are expected to boost market growth.
Given the market potential for the treatment of depression, FDA clearance of NeuroStar Advanced Therapy is likely to boost the Neuronetics business and increase revenues.
Notable Developments
Neuronetics recently announced that it has entered into an expanded commercial partnership with Transformations Care Network, a mental health care provider. This partnership marks a significant advancement in the field of mental health treatment, particularly for patients suffering from MDD and treatment-resistant depression.
Neuronetics, Inc. Price
Neuronetics, Inc. price | Neuronetics, Inc. Quote
Zacks Rank & Stocks to Consider
STIM carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.
Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.
Cencora, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have surged 51.5% compared with the industry’s 3.6% rise in the past year.