Neuroelectronics device manufacturer Cyberonics received preliminary approval for a surgical implant to treat severe depression. It is the first time an implanted device has been recommended for the treatment of a psychiatric disorder.

Using a technique known as vagus nerve stimulation, the implanted device uses electrodes implanted in the neck to activate brain regions that are believed to regulate mood. The involves connecting a wire to the left vagus nerve in the side of the neck; a battery is implanted high in the left chest or under the armpit, and the amount of current can be regulated externally. Typically, the implant sends a 30-second pulse of current followed by a five-minute pause, 24 hours a day.

The Neurological Devices Panel of FDA’s Medical Devices Advisory Committee voted 5 to 2 to recommend approval with conditions of Cyberonics’ VNS Therapy™ System “as an adjunctive long-term treatment of chronic or recurrent depression for patients over the age of 18 who are experiencing a major depressive episode that has not had an adequate response to four or more adequate antidepressant treatments. The stock, CYBX, surged 70% on the news.

While it is clear from the committee's recommendation that several emoticeuticals to treat depression must first be tried, the recommendation highlights an important trend in the emerging neurotechnology industry: neuroceutical makers and neuroelectronics manufacturers will increasingly compete for market share as they strive towards developing for better tools to treat mental illnesses. Indeed, Cyberonics already has pilot studies underway to evaluate VNS Therapy as a potential treatment for anxiety disorders, Alzheimer’s disease and chronic headache/migraine.