Neuronetics: Driving TMS Adoption Through Clinical Innovation and Data-Backed Leadership

The mental health treatment landscape is undergoing a quiet revolution, with transcranial magnetic stimulation (TMS) emerging as a non-invasive, drug-free alternative for millions suffering from depression, anxiety, and OCD. At the heart of this shift is Neuronetics, Inc. (NASDAQ: NRTX), whose NeuroStar TMS System has become synonymous with precision and efficacy. This week at the 2025 Clinical TMS Society (CTMSS) Annual Meeting, the company reinforced its leadership position with data-driven initiatives designed to accelerate TMS adoption, from coil design superiority to personalized qEEG protocols. For investors, these moves signal a clear path to sustained growth in a market projected to hit $2.8 billion by 2030.

Real-World Outcomes: Establishing Clinical Superiority

Neuronetics' presentations at the CTMSS meeting leaned heavily on its TrakStar® database, the largest real-world outcomes dataset in TMS, which now encompasses over 7.4 million treatments. Two studies stood out for their potential to differentiate NeuroStar from competitors like Brainsway:

1. Coil Efficacy Comparison: A retrospective analysis of 200 Greenbrook Mental Wellness Centers (a Neuronetics subsidiary) compared NeuroStar's proprietary Figure-8 coil with Brainsway's H-coil in treating depression. While results were not yet published, the study's design—comparing outcomes across hundreds of centers—suggests a strategic effort to highlight NeuroStar's technical edge. Such data could sway providers and payers in markets where Brainsway has historically held significant share.
2. Late-Life Depression Breakthrough: Dr. Eleanor Cole presented the first large-scale analysis of TMS efficacy in patients aged 70+, a population often underserved by antidepressants. The study, part of TrakStar, demonstrated safety and clinical response rates comparable to younger cohorts. With 15% of Americans over 60 experiencing depression, this opens a vast, untapped market.

Personalized Medicine Meets TMS: qEEG Protocols

Greenbrook's feasibility program for qEEG-informed TMS protocols is a bold step into personalized medicine. By tailoring magnetic stimulation to individual neurophysiological profiles, the initiative aims to boost response rates in treatment-resistant cases—a critical unmet need. While early results only confirm operational feasibility, the potential is staggering: a 2023 study in Neuropsychopharmacology found that qEEG-guided TMS improved remission rates by 30% versus standard protocols.

Neuronetics' commitment here isn't just clinical—it's strategic. Personalization could justify premium pricing and defend against generic coil competitors, much like how Roche's personalized cancer therapies command higher margins.

Expanding into Adolescents and Scaling Clinically

NeuroStar's recent FDA clearance for adolescents aged 15–21 is another growth catalyst. With 13% of U.S. teens experiencing depression, this opens a $500 million+ opportunity. Meanwhile, Greenbrook's 95+ treatment centers (post-acquisition) provide a scalable network to deliver care, supported by synergies like $22 million in annualized cost savings.

The company's National TMS Therapy Awareness Day (May 2025) also highlights its marketing muscle, targeting the 300 million Americans with insurance coverage for NeuroStar. Educating patients and providers about TMS's benefits could drive adoption in underpenetrated regions, where only 10–15% of eligible patients currently receive it.

Investment Thesis: A Leader with Long-Term Momentum

Neuronetics' trifecta of clinical differentiation, data-backed scalability, and market expansion positions it to capture a larger share of the growing TMS market. Key catalysts ahead include:
- Full results from the Brainsway vs. NeuroStar coil study (likely by Q4 2025).
- qEEG protocol efficacy data in 2026.
- Medicare's coverage expansion for adolescent TMS (expected in 2026).

Risk Factors: Competitive pricing pressure, regulatory delays for new indications, and patient reimbursement hurdles. However, Neuronetics' 7.4 million treatment dataset and Greenbrook's operational footprint mitigate these risks by enabling rapid adaptation.

Conclusion

Neuronetics is not just a TMS vendor—it's an ecosystem player, combining hardware innovation, clinical data, and network scale to dominate a $2.8 billion market. For investors seeking exposure to mental health innovation, NRTX offers a compelling blend of near-term catalysts and long-term growth. With a price-to-sales ratio of 3.2x (below peers like Myriad Genetics at 4.5x), the stock appears undervalued ahead of its next wave of clinical wins.

Investor takeaway: Consider a position in NRTX as TMS adoption accelerates, but monitor Q3 2025 earnings for coil study results.