Brain Stimulation for Depression
david gabeau@david
The idea
I believe non-invasive brain stimulation hits mental health and depression before any productivity use case, so I built exposure across the whole chain. I hold clinic TMS providers, the newer at-home stimulation names, and the large neuromodulation makers that could acquire them, plus the chipmakers and clinics that support the devices. Large-cap device makers act as ballast, with a small cash reserve, and I'm holding for years since this depends on adoption and approvals playing out over time.
What will be bought
- Large device makers with brain and nerve stimulation businesses could acquire winning private companies and provide steadier footing for the take. · LivaNova PLCIt makes a vagus nerve stimulator for depression patients who have not responded to medication and is working toward wider insurance coverage of that therapy., Medtronic plcIt is a large neuromodulation company with the cash flow and experience to acquire at-home brain stimulation companies if they gain traction in the market., Boston Scientific CorporationIt has a growing neuromodulation business and a track record of acquiring smaller device companies, making it a likely consolidator of brain stimulation startups., Abbott LaboratoriesIt sells neuromodulation implants and has the consumer-facing sales expertise needed for an at-home depression headset to reach patients directly.33%
- Magnetic stimulation in clinics is the depression treatment insurers already pay for today. · BrainsWay Ltd.It makes Deep TMS, a magnetic coil system used in clinics when antidepressants have not worked, making it a direct bet on in-clinic brain stimulation for depression., Neuronetics, Inc.It operates the largest installed base of TMS machines across U.S. psychiatry offices, positioning it to benefit as treatment adoption increases among depressed patients.24%
- Psychiatry clinics and telehealth companies are the prescribers who refer patients for brain stimulation devices and treatments. · LifeStance Health Group, Inc.It operates a large network of outpatient psychiatrists and therapists who would prescribe or refer patients to brain stimulation treatments., Hims & Hers Health, Inc.It prescribes treatments directly to patients online and already operates a mental health business, making it a natural channel to distribute approved at-home depression headsets.13%
- Low-noise sensing chips and precise manufacturing components are needed in every brain stimulation headset, regardless of which device maker succeeds. · Texas Instruments IncorporatedIt makes the analog chips that sense brain signals and drive stimulation in brain stimulation devices, getting paid by any device maker that wins the market., Analog Devices, Inc.It makes precise analog chips for measuring body signals, the components that let a brain stimulation headset read and respond to the brain.13%
- Prescription headsets and nerve stimulators used at home represent where the depression treatment market could expand fastest. · electroCore, Inc.It sells a handheld device that stimulates the vagus nerve through the skin, an at-home, non-surgical treatment option for depression., Nexalin Technology, Inc.It makes a small headset that sends current through the scalp as a speculative approach to at-home brain stimulation, and requires real regulatory and sales progress in mental health.10%
- Cash7%