BrainsWay Ltd. (NASDAQ & TASE: BWAY) has invested $500,000 for a minority position in Sound Minds Behavioral, a growth-oriented outpatient behavioral health platform. The investment is structured as a preferred, annually compounding security aimed at expanding access to interventional psychiatry solutions. This strategic equity financing round supports Sound Minds Behavioral's operations across Connecticut, Pennsylvania, New Jersey, and New York.

The agreement facilitates the partner's expansion through growth capital while allowing BrainsWay to maintain its focus on scientific and clinical advancement. Hadar Levy, Chief Executive Officer of BrainsWay, emphasized that the minority stake approach enables the company to deliver best-in-class support to its customers. The partnership is expected to enhance the cutting-edge mental health treatments provided by Sound Minds Behavioral.

Sound Minds Behavioral offers therapy, medication management, PHP/IOP, and interventional psychiatry services. Jordan Klear, Chairman and Chief Executive Officer of Sound Minds Behavioral, stated that the partnership will support continued growth and expand access to evidence-based care. The organization focuses on scalable clinical operations and clinical partnerships.

The investment transaction was made with CM Counsel Management LLC, doing business as Sound Minds Behavioral. Advocates Ami Hordes and Sarit Molcho of S. Friedman, Abramson & Co. Law Offices served as lead counsel for BrainsWay on the transaction.

Key Transaction Details

BrainsWay is a global leader in advanced noninvasive neurostimulation treatments for mental health disorders. The company's proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) platform technology has obtained three FDA-cleared indications. These include major depressive disorder, obsessive-compulsive disorder, and smoking addiction.

BrainsWay Ltd. has presented positive new real-world data demonstrating significant improvements in patients with comorbid post-traumatic stress disorder (PTSD) and Major Depressive Disorder (MDD) treated with Deep Transcranial Magnetic Stimulation (Deep TMS). HC Wainwright & Co. analyst Raghuram Selvaraju has reiterated a Buy rating on BrainsWay (NASDAQ: BWAY) and maintained a $17 price target following the findings. The clinical data was presented in a poster, titled "Safety and Efficacy of Deep TMS in Comorbid MDD and PTSD: Real-World Data Analysis," by Colleen Hanlon, PhD, Vice President of Medical Affairs for BrainsWay, at a recent leading industry conference.

The retrospective study evaluated 462 patients from 11 clinical sites diagnosed with both MDD and PTSD. All patients received at least 20 Deep TMS treatment sessions using BrainsWay's H1 or H7 coils. Outcomes included changes in the PTSD Checklist for DSM-5 (PCL-5) and the Patient Health Questionnaire-9 (PHQ-9) before and after treatment.

Key Clinical Outcomes

Colleen Hanlon, Ph.D., Vice President of Medical Affairs at BrainsWay, noted that this study represents the largest real-world analysis of Deep TMS in this patient population to date. Toby Marton, M.D., Chief Medical Officer at Mindful Health and a lead contributor to the study, highlighted the potential of Deep TMS to deliver meaningful benefits for patients experiencing more severe symptoms and fewer effective treatment options.

Deep TMS is not currently cleared by the FDA for the treatment of PTSD and/or comorbid PTSD and MDD. The preliminary findings from the real-world study remain subject to peer review analysis. BrainsWay holds three FDA-cleared indications backed by pivotal clinical studies, including anxious depression, OCD, and smoking addiction. The company continues to conduct additional clinical trials for Deep TMS in psychiatric, neurological, and addiction disorders.