This Cochlear-backed ASX aspirant will be targeting an epilepsy market worth north of $1 billion

This company is looking to raise $125 million to help commercialise its epilepsy monitoring technology.

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Key points

  • Epiminder has developed a monitoring system for epilepsy sufferers.
  • The company is looking to raise $125 million ahead of its ASX listing.
  • Cochlear will own more than a third of the company on listing.

Australian medical device company Epiminder Ltd (ASX: EPI) is aiming to list on the ASX next month, with a value north of $300 million as it seeks to target a potential market worth billions.

Epiminder has developed an implantable electroencephalography (EEG) device that can be used to monitor bodily signals, with this data then being used by healthcare professionals to better treat patients' epilepsy.

Decades of research

The company's prospectus, recently lodged with the ASX, says the device is built around research which started in 2005, with the company formed by Professor Mark Cook in 2018, "alongside the Bionics Institute, the University of Melbourne, St Vincent's Hospital Melbourne and Cochlear''.

Chair Philip Binns goes on to say in the foreword to the prospectus:

In order to accelerate and de‑risk development, Epiminder combined its proprietary EEG technology with Cochlear's robust and tested hearing implant design to create a minimally invasive implantable EEG monitor. Epiminder commenced a clinical study of the Minder system in 2019, ultimately demonstrating that the system is both safe and has signal detection equivalent to a scalp EEG.

The company received authorisation from the US Food & Drug Administration (FDA) in April, allowing the device to be sold in the US. The company is aiming to formally launch its G0 Minder system in the US in the first half of 2026, "undertaking a phased commercial rollout into leading epilepsy centres as part of a program, titled DETECT, to demonstrate the clinical utility of the system''.

Mr Binns added:

Epiminder's initial market in the US will be drug-resistant epilepsy patients with an inconclusive diagnosis, an annual revenue opportunity of up to US$1.1 billion. Epiminder also believes there is significant scope to expand the use of the Minder system beyond the initial market over time.

Epiminder is looking to raise $125 million via the issue of about 83.3 million new shares, with the funds to be raised to launch the DETECT program, complete the design of the next generation Minder system, and build the company's business development infrastructure ahead of a full commercial launch.

The company said in its prospectus that Cochlear Ltd (ASX: COH) had committed to take up $10 million worth of new shares, and in addition to the stake it already owns, will hold 36% of the shares on issue when the company floats.

The initial public offer opened on 11 November, and the company expects to list on the ASX on December 1, valued at $325 million. The new shares will be valued at $1.50 each.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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