Brainsway CEO: US distribution deal close

Uzi Sofer told "Bloomberg": We are in discussions with several large companies interested in partnering with us.

Brainsway Ltd. (TASE:BRIN) expects to reach an agreement this quarter for a medical-device company to market its non-invasive system to treat depression in the US, CEO Uzi Sofer told "Bloomberg" in an interview.

Earlier this month, Brainsway obtained US Food and Drug Administration (FDA) approval to use the company's Deep TMS (transcranial magnetic stimulation) device for the treatment of depression in patients who fail to respond to medication during a depression episode.

Currently, these patients receive electroconvulsive therapy (ECT), despite the strong negative image of the therapy. One million ECT treatments are carried out in the US each year. Sofer says that Deep TMS is just as effective as ECT, but without the side effects. There has been no comparative clinical trial of the two therapies to date.

Sofer told "Bloomberg", "We are in discussions with several large companies interested in partnering with us. Our next step is to reach a deal with a distributor." He declined to disclose which companies Brainsway was in talks with, though he said they included some of the largest in the industry.

Sofer also told "Bloomberg", "We are looking to be in the Nasdaq because this is the right place to be,” said Sofer. “The reason is not so much to raise money as it is to give the company its real valuation."

"Bloomberg" notes that that a US listing may boost Brainsway’s value by exposing it to more investors and possibly attracting analyst coverage, and that no analysts follow the company. It adds that Brainsway's share price has soared 68% this year after winning US and Canadian regulatory approval, and that the company would join drug developer Kamada Ltd. (TASE: KMDA) and translation software developer Babylon Ltd. (TASE:BBYL) in seeking Nasdaq listings this year as trading in Tel Aviv dwindles.

Published by Globes [online], Israel business news - www.globes-online.com - on January 21, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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