Neuronetics, based in Malvern, is under pressure from its largest shareholder, Jorey Chernett, who is calling for an immediate review of strategic options, writes John George for the Philadelphia Business Journal.
In a letter to the board, Chernett stressed that those alternatives should include a possible sale of the medical device company’s core transcranial magnetic stimulation business. He owns 14.12 percent of the company’s outstanding shares.
Neuronetics, established in 2003, developed the NeuroStar TMS Therapy System that targets specific brain areas with magnetic pulses to treat depression. In December 2024, it acquired Toronto-based Greenbrook TMS, which runs 95 clinics across the U.S., for roughly $45 million in stock, combining the company’s technology development with clinic operations.
Chernett noted that while he remains supportive of both business units, the expected benefits from combining the TMS system with Greenbrook have not been realized.
The company has “chronically underperformed,” he wrote in his April 6 letter. “A micro-cap company with finite capital and limited management bandwidth cannot adequately serve two distinct businesses simultaneously.”
In response, Neuronetics said its board and management are dedicated to serving shareholders’ interests and regularly review opportunities to increase shareholder value.
Read more about Neuronetics being pushes to review their strategies in the Philadelphia Business Journal.
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