Shares in biotechnology company Epiminder Ltd (ASX: EPI) got off to a less-than-stellar start on the ASX this week, with shareholders in the initial public offering already incurring decent losses.
The company's shares listed on Monday and closed the day at $1.31, well below the IPO price of $1.50. The stock fell a further 5.4% on Tuesday morning to be changing hands for $1.24 apiece.
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Positive developments fail to bolster shares
This was despite the company announcing an update to the US Medicare status of its Minder system, with the company saying the reimbursement level for the device would be set at US$27,700.
As the company told the ASX on Monday:
The company's Minder device is the first and only US FDA-authorised implanted continuous EEG monitoring systems designed for monitoring of brain activity for epilepsy. Epiminder aims to use its innovative solution to assist patients and healthcare professionals in the management of drug-resistant epilepsy. It is seeking to fulfill a large and unmet addressable market. With approximately 1.1 million adults with drug-resistant epilepsy in the US alone.
The company said on Monday that in late November, it onboarded its first "Detect program partner", and was targeting up to 25 sites in the US under its Detect program "to build clinical utility evidence".
The company is also pleased to advise that it recently received the final ruling in relation to US Medicare reimbursement levels for the implantation of the Minder Device for 2026. The final US Medicare reimbursement level for 2026 has been set at approximately US$27,700, having previously been set on a preliminary basis at approximately US$22,500.
Epiminder said it was also eligible for other Medicare payments due to its device being classed as a "breakthrough" device.
Listing to drive commercialisation
The company raised $125 million in its IPO, with Cochlear Ltd (ASX: COH) taking up $10 million in new shares under the offer.
In addition to the stake it already owned, Cochlear was set to own 36% of the company on listing.
Epiminder said in its prospectus that it would use the money raised to progress its commercialisation plans.
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", it said.
The company's chair, Philip Binns, said in the prospectus that the market for its device was worth an estimated US$1.1 billion annually in the US alone.
