Deep TMS Therapy Expands Coverage for Adolescent Patients: What This Means for BrainsWay

BrainsWay Ltd. (BWAY) stock surged 10.1% following a significant development in its non-invasive neuromodulation platform. UnitedHealth Group’s Optum Behavioral Health has broadened its insurance policy to cover Deep TMS therapy for adolescents aged 15 and older diagnosed with major depressive disorder—a decision that could reshape the commercial landscape for the company’s flagship treatment technology.

The Scale of the Opportunity

Optum’s network encompasses more than 48 million covered lives, positioning this as one of the most substantial single-policy expansions in BrainsWay’s history. Combined with existing coverage from major insurers like CVS/Aetna, Evernorth Health Services, TRICARE, and multiple Blue Cross Blue Shield regional plans, the collective payer network now covers approximately 180 million lives. This multi-payer alignment is critical: with roughly 5 million U.S. adolescents aged 15-21 struggling with major depressive disorder and facing limited treatment alternatives, the expanded Deep TMS therapy access addresses a genuine clinical gap.

How Deep TMS Therapy Works

BrainsWay’s Deep TMS technology represents a non-invasive approach to depression treatment. The platform employs patented H-coil technology to deliver magnetic pulses that penetrate deeper and broader regions of the brain associated with mood regulation. Unlike traditional antidepressants, Deep TMS therapy requires no surgery or systemic drug exposure, making it particularly attractive for adolescent patients who show inadequate response to or intolerance of conventional medications. The FDA has cleared this modality for depression across adult and adolescent populations.

Market Dynamics and Stock Performance

BWAY’s 10.1% single-day gain reflects broader confidence in the company’s trajectory. Over the past six months, shares have appreciated 53.6%, substantially outpacing both the broader medical device industry (5.5%) and the S&P 500 (15.1%). At a market valuation of $334.8 million and projected earnings growth of 100% for the current fiscal year, the company is positioning itself at an inflection point.

The insurance policy expansion strengthens this thesis by reducing reimbursement friction and expanding the addressable patient base at an earlier stage of the treatment journey. Broader payer acceptance encourages clinical providers to invest in Deep TMS infrastructure, building a durable demand foundation and deepening competitive moats in non-invasive depression treatment.

The Neuromodulation Boom

The market tailwinds supporting BrainsWay extend beyond adolescent depression. According to Grand View Research, the global neuromodulation devices market was valued at $5.80 billion in 2024 and is projected to reach $10.39 billion by 2030, representing a compound annual growth rate of 8.51%. Rising incidence of chronic pain, neurological disorders, and mental health conditions globally is driving demand for innovative, non-pharmacological interventions—exactly the space Deep TMS therapy occupies.

Looking Ahead: Alcohol Use Disorder Trial

In November, BrainsWay launched a multicenter clinical trial investigating its next-generation Deep TMS 360 system for Alcohol Use Disorder (AUD), a condition characterized by high relapse rates despite existing treatment options. This represents the company’s first multicenter study using its new multichannel TMS platform, signaling an important expansion of its clinical pipeline beyond depression. Success in AUD could unlock an entirely new revenue stream and patient population.

The Bottom Line

Optum’s policy expansion validates Deep TMS therapy as a clinically credible, cost-effective alternative to medication-based treatment for adolescents. Combined with favorable industry growth projections and an expanding pipeline, BrainsWay appears well-positioned to capture market share in the expanding neuromodulation sector.