Brainsway stock was jumping 26 percent in mid-day trading Wednesday on triple its typical volume of trade, after the company announced American marketing approval for its brain stimulation technology to treat depression.
The Israeli company, which is rising on midday turnover of NIS 5.5 million, had sought approval from the U.S. Food and Drugs Administration for use of its Deep-TMS device to treat depression that hadn\’t responded to drugs.
TMS stands for transcranial magnetic stimulation. The technique involves non-invasive but specific stimulation of brain tissue using brief magnetic pulses.
The pulses induce an electric field in the underlying brain tissue, the company explains.
The new FDA approval opens a vast potential market, potentially worth billions of dollars a year, for Brainsway.
Brainsway stresses that the FDA approved a wider range of uses for its device, than for a competing TMS device by rival company Cyberonics.
Brainsway is examining various marketing and distribution strategies for treatment in the U.S. and throughout the world, including signing cooperation agreements.