NeurAxis, Inc. (NRXS), a growth-stage medical technology company developing neuromodulation therapies to address chronic and debilitating conditions in children and adults, announced the publication of clinical practice guidelines recommending percutaneous electrical nerve field stimulation (PENFS) as a treatment option for functional abdominal pain associated with irritable bowel syndrome (FAP/IBS).

NeurAxis’s IB-Stim device employs PENFS technology and is the only FDA-cleared treatment recommended in the new guidelines for pediatrics. The guidelines were published in theJournal of Pediatric Gastroenterology & Nutrition by the European and North American Societies for Pediatric Gastroenterology, Hepatology, and Nutrition (ESPGHAN and NASPGHAN), the leading pediatric academic societies.

After evaluating the benefits and harms of the treatment, the Guideline Development Group noted that pain intensity reduction achieved with auricular PENFS was among the highest across all studied treatment options, leading to its inclusion as part of the standard of care for FAP/IBS. The committee evaluated a total of 25 therapies, with PENFS rated as one of the top four with the highest levels of evidence. The guidelines followed the Grading of Recommendations, Assessment, Development, and Evaluation (GRADE) approach, which is supported by the World Health Organization. In addition to PENFS, highly-rated therapies for FAP/IBS include hypnotherapy, the lactobacillus rhamnosus probiotic, and soluble fiber.

Clinicians now have the option of using IB-Stim as first-line therapy, confirming the efficacy and safety supporting PENFS technology and backing wider market adoption of IB-Stim.

In light of the fact that several large payers require published academic society guidelines to aid their coverage determinations, we expect the new guidelines to function as a significant catalyst for broader insurance coverage, facilitating treatment access for the majority of affected children in the U.S. while accelerating revenue generation for NeurAxis. NeurAxis management expects the number of covered lives to double from the current 51 million to around 100 million by year-end.

We reiterate our Buy rating on the stock and have raised our target price to $5.50, from $4.75, based on an increase in 2026 forecast revenue from $8.0 to $11.0 million.