Cochlear-backed epilepsy medtech Epiminder’s shares on the slide after $125m public offer

Shares in Melbourne-based medtech Epiminder (ASX: EPI), a company backed by hearing technology giant Cochlear (ASX: COH), have struggled to push past their issue price following a $125 million initial public offering (IPO) completed at the end of last month.

The shares, which were issued at $1.50 each, hit a low of $1.18 today, their third trading session on the ASX since debuting on 1 December - a 21 per cent discount to their issue price, valuing the company at about $258 million.

The shares have failed to rise above the issue price, trading at a high of $1.49 following their debut on Monday before hitting today’s low.

Epiminder is a medical device and information solutions company that is developing diagnostic and treatment tools for epilepsy.

Founded in 2017 by Professor Mark Cook, Epiminder was born from a research collaboration between the Bionics Institute, the University of Melbourne, St Vincent's Hospital Melbourne and Cochlear, which is the major shareholder controlling a 35.99 per cent stake.

Cook, who is Epiminder’s chief medical officer and has been working on the technology for the past 20 years, says his first encounter with epilepsy was as a medical student when his father developed the condition.

“My father’s epilepsy was very poorly controlled, and it was clear that nobody had any idea what was happening with his seizures,” says Cook in the company's prospectus.

“That realisation set me on a personal and professional trajectory that has resulted in the founding of Epiminder and the development of the Minder system.

“The goal of epilepsy treatment is to achieve seizure freedom, or at least, a significant reduction in seizure frequency and severity, while minimising the consequential side effects from treatment.”

Epiminder achieved a significant milestone in its business strategy after the Food and Drug Administration authorised its system for use in the US. The company, which also has an office in Dallas, Texas, notes that this is the first FDA-authorised sub-scalp electroencephalogram (EEG) on the market.

“The Minder system has the potential to deliver high quality, continuous EEG data over months or years,” says Cook.

“In the field of neurology, there is increasing potential for diagnostic assessment and treatment decisions in epilepsy to be supported by objective data sources, potentially reducing reliance on patient diaries or limited-duration EEG monitoring.”

Cook says the technology has the potential to improve the lives of millions of people around the world.

Epilepsy is estimated to affect more than 52 million people worldwide and is the fourth most common neurological disorder, sitting behind migraines, strokes and Alzheimer’s disease.

Epiminder says existing epilepsy diagnostic and monitoring tools have “significant limitations”, such as the low accuracy of self-reported patient seizure diaries or the limited measurement duration of current EEG technology.

“Without accurate diagnosis and monitoring, sustained and effective treatment of epilepsy can be challenging, negatively impacting on the quality of life for patients and their loved ones, as well as materially increasing healthcare costs,” says the company.

The sub-scalp EEG involves placing electrodes just below the scalp, with Epiminder recently celebrating six years since its first patient received the Minder implant as part of the UMPIRE clinical study in Australia.

Epiminder plans to officially launch the current generation G0 Minder system that was used in the UMPIRE study in the US in the first half of next year with a commercial rollout into epilepsy centres. The company is also seeking FDA clearance for its next-generation G1 Minder system.

A full commercial launch in the US is planned for the first half of 2028.

While Epiminder is responsible for the design, production, packaging, labelling and market release of the Minder system, Cochlear is the primary contract manufacturer with the implants produced at the hearing technology company’s Australian sites.

However, the G1 wearable product will be produced at Cochlear’s Australian and Malaysian sites.

Epiminder, which has yet to generate income from its products, posted a net loss of $34.5 million in FY25, up from a $22.4 million loss a year earlier.