ZGNX - Billionaires Are Betting This Could Be One Of The Biggest Industries In History
- Brain and computer augmentation isn't all that far-fetched according to recent research, where electrical stimulation has improved memory in older adults and electrodes are enabling some high-tech prosthetics to transmit sensations to their users. Bryan Johnson and Elon Musk have both made early bets by starting companies around integrating the mind and computer.
- This neurostimulation industry has received substantial attention as more companies have brought high-tech devices to patients for the treatment of everything from pain to memory disorders, like the two major 2018 IPOs Axonics (AXNX) and electroCore (ECOR). NeuroOne Medical Technologies (NMTC) is likely right around the corner from their first FDA clearance, and few investors are paying attention to this quiet little company.
NEW YORK, NY / ACCESSWIRE / April 16, 2019 / Medical research published in April found that stimulating the brain with electrical currents can help boost older people's mental scores, with their results matching those of people 20 or 30 years younger.
But this finding isn't totally new, and an electrode-enabled cyborg future could be coming.
Research funded by DARPA reported in 2017 that electrodes implanted in the hippocampus improved short-term and long-term memory by up to 35% in epilepsy patients. High-performing athletes are using neurostimulation to improve their performance on the field, and some visionaries expect implants to someday enhance the human mind altogether. Elon Musk's audacious startup Neuralink is developing high bandwidth brain-machine interfaces to connect humans and computers.
We may not be all that far away from this kind of augmentation, and the precursor technology is either on the market or coming soon. In fact, a small company focused on neurostimulation and neurology medical devices could have their first FDA clearance coming up, and the company's public shares have mostly gone under-the-radar in the public markets. That could change in 2019, and NeuroOne Medical Technologies (NMTC) is a company to know.
Neurostimulation, Augmentation, and Our Cyborg Future
Neurostimulation refers to the many technologies that modulate or stimulate the nervous system: spinal cord, vagus nerve, and often in/on the brain itself. It's being used successfully today to treat chronic pain and migraines, as with new devices available from electroCore (ECOR) and Nuvectra (NVTR). Elsewhere, implantable devices called Deep Brain Stimulators (DBS) are allowing patients to find relief from the symptoms of Parkinson's and Epilepsy.
Combined, this neurostimulation devices market is set to exceed USD$16 billion by 2024 according to research by Global Market Insights.
On the cutting edge, researchers and entrepreneurs are deploying stimulation and electrode technology to augment the human body or mind. Prosthetic arms are able to provide controlled sensory feedback with electrodes so that a user can FEEL their replacement limb. Electrodes implanted in the brain may restore some vision to the visually impaired, and the military has conducted trials to explore whether implanted electrodes can improve memory.
Elon Musk launched a company called Neuralink to explore the brain-computer interfacing. Braintree founder Bryan Johnson puts his money on the future too, and thinks ''neural prosthetics including cognitive enhancement and treatment of neurological dysfunction will likely be one of if not the largest industrial sectors in history.''
Companies Are Coming to Market With New Products, And Upcoming FDA Events Could Spotlight More
Neurostimulation companies are bringing these hot new technologies to the market. ElectroCore (ECOR) went public in 2018 in an IPO that nabbed them over $75 million in cash, and Axonics Modulation Technologies (AXNX) pulled in over $120 million the same year.
In 2019, the little-known NeuroOne Medical Technologies (NMTC) could be on the verge of their first FDA approval in this growing industry. NeuroOne is a med device company focused on the neurology sector, and their first foray is with a flexible electrode technology tested and researched by the Mayo Clinic, which is also a 10% holder of NeuroOne's public stock. NeuroOne's electrode technology is designed to be more flexible and precise than current products on the market, and they submitted paperwork to the U.S. FDA in late January seeking an approval of the device. The FDA's goal is to make a decision within 90 days of this 510(K) filing, thus NeuroOne could have a major event in April or May of 2019.
It's an off-the-radar event for healthcare investors judging by the volume in NeuroOne's trading, thus this could be the event that puts them on the radar as an emerging neurology company. Additionally the company is planning a second device filing for the second quarter of 2019 if all goes well, for planned depth electrodes to penetrate further into the brain. They're developing a deep brain diagnostic and ablation device for treating epilepsy that they hope to bring to market after, but they've also made a point of focusing on translational applications that could include artificial intelligence applications.
In 2018 the company launched an artificial intelligence advisory board chaired by Dr. Kip Ludwig, former Program Director for Neural Engineering at the NIH. The board is focused on applications outside of traditional healthcare roles, which might include unique computer-brain interfacing and augmentation applications if the board's makeup is any indicator. Dr. Doug Weber, a Program Manager in the Biological Technologies Office (BTO) at DARPA also joined, as did Dr. Cristin Welle of the Univ. of Colorado, a founder of the Neural Interfaces Program at the FDA's Center for Devices and Radiological Health Office of Science and Engineering Labs.
The healthcare investment sector is known for attention grabbing headlines and interest based on FDA events. Zogenix Inc (NASDAQ: ZGNX) and PhaseBio Pharmaceuticals Inc. (NASDAQ: PHAS) are recent examples, both of which saw headline coverage in conjunction around their FDA communications.
In 2019, NeuroOne Medical Technologies could be in for some news of their own as they await a clearance from the FDA and plan more possible applications for this year.
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