Jerusalem-based Brainsway has been granted investigational device exemptions from the FDA to test the company’s Deep TMS (Transcranial Magnetic Stimluation) device for the treatment of cocaine addiction.

Brainsway will conduct a clinical trial in the US, which will include 30 patients and be financed by the National Institute on Drug Abuse (NIDA), a unit of the National Institutes of Health.

If and when the Deep TMS is commercialized for the treatment of cocaine addiction, Brainsway will pay royalties to NIDA.

The Deep TMS is a non-invasive treatment of brain disorders that activates or suppresses neuron activity in the brain to treat psychiatric or neurological disorders.

Brainsway, run by CEO Uzi Sofer, is dedicated to the development and marketing of Deep TMS, that the company describes as “a novel, noninvasive medical device for treatment of a wide range of neurological and psychopathological disorders.”

Israel’s financial daily Globes reports that Brainsway has initiated procedures to list on Nasdaq in the fourth quarter of 2010.