In Conversation: Neuronetics (STIM)
Our Conversation with STIM on the Future of Mental Health
CitriniResearch’s In Conversation series is focused on illuminating opportunities in companies we are interested in that have little in the way of existing coverage by analysts and/or are in the midst of turnaround stories that have gone underappreciated by the market-at-large.
Most recently, we’ve had the opportunity to meet with Keith Sullivan, CEO of Neuronetics (STIM US), a company we have been excited about since we first covered it as part of our Healthcare & Medtech Innovation thematic primer in August 2024. In our sit down, we discussed the history of Neuronetics, the strategy the company has built to drive awareness and adoption of the therapy, their recent transformative acquisition. We also covered mental health trends in the U.S., the efficacy of various depression treatments like Transcranial Magnetic Stimulation (TMS) and Spravato, the current regulatory environment for innovative healthcare companies under the new administration and a multitude of other thematic tailwinds working in the company’s favor.
STIM has been one of our top performers in our model portfolio, the Citrindex, a rare example of a company we have consistently “bought the dip” on. We’ve steadily increased the portfolio’s allocation to STIM since originally covering it, a move that has been greatly rewarded as it has soared more than 700% off of the local low put in during mid-November.
Our conversation with Keith Sullivan highlighted the pronounced need for and proven efficacy of Neuronetics’ TMS therapy. It also helped us understand the historical barriers to adoption – specifically, restrictive labels, a lack of awareness, and challenging access. Keith and his team have made huge strides in breaking down all of these barriers in recent years, and it seems that all of the pieces are in place to make TMS part of the standard of care in tackling the global mental health crisis, which is an objective truth by any stretch of the imagination.
Still, we left the conversation even more excited about Neuronetic’s prospects as we came to fully appreciate the inflection point the company has reached. While it can be tempting, as investors, to think significant recent outperformance is indicative of being “too late” - we believe much the opposite after this illuminating back and forth with management.
Paid Content Below: The Neuronetics Opportunity & Our Interview Transcript with Keith Sullivan, CEO Neuronetics