Two emerging approaches to treating neurological conditions are getting traction across the investment world: medical marijuana and neurostimulation. Both are addressing conditions like pain, movement disorders, seizures and many other problems with the nervous system. Both will be big winners, and many of the smartest investors are long BOTH. One neurostimulation company called NeuroOne Medical Technologies (NMTC) has yet to get much investor attention even though the company is using technology out of The Mayo Clinic, and the institute is a 10% shareholder of the company’s public stock. NMTC has put together a rock star advisory board around using their electrodes in bioelectronics and artificial intelligence applications. They’re planning to file their first product for FDA approval in early 2019, and they have a number of additional neurostimulation devices in the pipeline. 2019 is likely full of potential catalysts for this emerging company.
NEW YORK, NY / ACCESSWIRE / November 27, 2018 / Cannabis is one of the hottest investment trends of the century for a few reasons. First, recreational use in places like Canada and parts of the U.S. is taking off with the potential to generate billions of dollars of revenue in the coming years. But the possible medical applications are boundless too, and many companies are focusing their product development efforts on medicinal uses.
The two main cannabinoids from the marijuana plant that are of medical interest are THC and CBD. They’ve been shown to improve appetite, help in mental and neurological disorders, and to reduce pain, inflammation and seizures in some cases.
Tilray Inc (NASDAQ:TLRY) made headlines as the first NASDAQ IPO among marijuana companies as their production/extraction of marijuana is taking off. Emerald Health Therapeutics (EMH.V) is developing distinctive cannabis products for medical use too and GW Pharmaceuticals (NASDAQ:GWPH) is credited as the first company with a cannabis-derived drug approved in the U.S.
Most of the early applications of marijuana derived medical products have been focused on issues associated, at their core, the brain and nervous system.
Another newer approach to treating neurological conditions is also being funded at a rapid pace by investors: neurostimulation. Neurostimulation devices deliver electrical stimulation to a specific part of the brain, spinal cord or peripheral nervous system to treat a variety of neurological disorders. Patients with severe Parkinsons’s disease for example have been major beneficiaries of better technology for Deep Brain Stimulation (DBS) in the last ten years, and some devices are even addressing pain with the use of stimulation. ElectroCore (ECOR) raised $72 million in an IPO in 2018 based on their vagus nerve stimulation device for migraines, which they’re selling in the United States!
According to the research firm Global Market Insights, neurostimulation was a $6.229 billion addressable market worldwide in 2017, and it’s growing quickly. By 2024, it could rise to $16.613 billion at a 15% CAGR.
Why is this market taking off? The devices that address neurological conditions have gotten smaller and more efficient, and they only arrived as compelling treatment options in the last 15 years. They’re more reliable and easier to implant as non-invasive surgical options have become more advanced.
But some of these advancements have been limited. NeuroOne Medical Technologies (NMTC) is addressing some clear hurdles of today’s technology through a partnership with the Mayo Clinic to advance a new more sensitive electrode technology from the institute; as a result, The Mayo Clinic is a 10% shareholder in NeuroOne’s publicly traded equity.
NeuroOne expects to receive approval from the U.S. Food and Drug Administration in 2019 for their first product, a thin-film electrode for diagnosing neurological disorders like epilepsy. That market, according to the company, is worth over $100 million in the U.S. today and they’ll be on the market next year.
Further, the company has a host of neurostimulation technologies in development, including a Deep Brain Stimulation/diagnostic combination product that will be their next priority in 2019. That market is worth about $800 million in 2019 according to Global Markets Insights.
Artificial Intelligence Advisory Board BringsRock Star Talent To NMTC
NMTC has put together a rock star advisory board around artificial intelligence and bioelectronics applications for its devices, a unique approach that could tap into a host of exciting applications. The caliber of these experts is impressive, including a program manager at DARPA and the founder of the Neural Interfaces Program at the FDA Center for Devices and Radiological Health Office of Science and Engineering Labs. Visionaries like Elon Musk have made bioelectronics a focus, starting his own new company called Neuralink, and the potential for NMTC’s possibly superior technology to find new deployments in the merger between mechanics and the human mind is intriguing. Clearly NMTC is positioned smack in the center of a very hot and exciting sector, and history suggests if NMTC can raise the necessary capital to commercialize these technologies, investors could be extremely well rewarded.
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