BrainsWay invests $1 million in Canadian mental health provider BrainStim
Under the agreement, BrainsWay will initially invest $1 million for a minority position in BrainStim, with potential for an additional $1.5 million through milestone-based investments. The investment will take the form of a preferred, annually compounding security with a redemption mechanism. BrainsWay appears well-positioned to fund this investment, as InvestingPro data shows the company holds more cash than debt on its balance sheet and maintains a healthy current ratio of 3.19.
This marks BrainsWay’s fifth minority-stake investment in clinical service platforms, according to the company’s statement. BrainsWay specializes in Deep Transcranial Magnetic Stimulation (Deep TMS) technology for treating mental health disorders. The company has demonstrated strong financial performance with 27% revenue growth in the last twelve months, according to InvestingPro data, which offers 14 additional ProTips and comprehensive analysis on BWAY’s financial health.
"As a long-time BrainsWay partner and an advocate for their dTMS technology, we are incredibly excited to link arms as we accelerate the growth of BrainStim," said Dr. Venu Karapeddy, BrainStim’s Chief Medical Officer.
BrainsWay currently has three FDA-cleared indications for its Deep TMS platform: major depressive disorder, obsessive-compulsive disorder, and smoking addiction. The company, founded in 2003, operates in the United States and Israel.
BrainStim focuses on interventional psychiatry, offering treatment protocols for conditions including trauma, stress, anxiety, and depression, with a particular focus on veterans and first responders.
The announcement was made in a press release issued by BrainsWay.
In other recent news, BrainsWay Ltd. has announced significant developments that could impact its future operations. The company revealed that the U.S. Food and Drug Administration has granted Premarket Approval for its Neurolief ProlivRx system, marking it as the first at-home neuromodulation device approved for treatment-refractory depression. Additionally, H.C. Wainwright has raised its price target for BrainsWay from $24 to $30, maintaining a Buy rating, following this FDA approval. In another development, BrainsWay plans to adjust the ratio of its American Depositary Shares to a 1-to-1 structure with its ordinary shares, effective March 3, 2026.
Furthermore, Highmark Blue Cross Blue Shield has drafted a policy to expand coverage for BrainsWay’s accelerated Deep TMS protocol for major depressive disorder, with a decision expected in February 2026. In related news, Evernorth Behavioral Health, a division of the Cigna Group, will eliminate prior authorization requirements for transcranial magnetic stimulation treatment by March 6, 2026. These recent developments reflect a growing acceptance and expansion of BrainsWay’s treatments in the healthcare sector.
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