Administrators for epilepsy diagnostic medtech Seer Medical seek a buyer, with US expansion still on the cards

Voluntary administration has not dampened the ambitions of medical device startup Seer Medical, which is seeking a buyer as it prepares to release the next generation of its epilepsy home monitoring and detection device in the United States.

Administrator Lindsay Bainbridge of Pitcher Partners Melbourne said non-binding offers are being sought for Seer Medical for the US expansion.

In an information memorandum for potential bidders, the Victorian startup outlines its plans to relaunch into the US market with its next generation at-home video EEG monitoring device for epilepsy detection.

Pitcher Partners Melbourne were appointed administrators on January 6 following a pre-Christmas board meeting where the medtech’s directors voted to hand over the books as the business grappled with a product recall for its first generation device and legal battle with its ousted cofounder.

Seer, founded in 2017, raised $34 million series A in 2021, backed by Cochlear, multi-family office EWM Group, SG Hiscock and impact investor Giant Leap. The Victorian government’s $2 billion investment fund Breakthrough Victoria (BV), also took a $30 million stake.

But 2024 was an annus horribilis for Seer, after the business failed to secure new funding 12 months ago. Several board members resigned amid concerns that Seer was on the brink of administration.

Breakthrough Victoria (BV) intervened with $4 million in emergency capital, but nearly a third of the workforce of around 200 people were made redundant. Cofounder Dr Dean Freestone, alleged he was ousted at that point, and lodged an unfair dismissal claim against Seer and BV, currently before the courts. The respondents deny the allegations and are defending them, but pre-Christmas, Breakthrough Victoria’s attempt to have the case thrown out was rejected.

Last August, the company issued a voluntary recall of its Home System monitor the US and around 20 clinics Seer had around Australia closed on August 20.

But there has also been substantial progress with Seer Medical’s product, which has been used by tens of thousands of people with epilepsy. Prior to the voluntary recall, Seer was live in two out of three of the top neurology centres in the US, with several other top centres pursuing partnerships.

There are more than 50 million people with epilepsy worldwide, including more than 3 million in the US.

The recall involved Quality Management System documentation, requiring product design changes. The next generation model has also been updated to improve data-offloading and cloud connection reliability, and the company expects to resume manufacturing by Q2 this year.

It’s also seeking an updated 510(k) clearance from the US FDA (Food and Drug Administration)_ with the goal of returning to American markets by mid 2026.

Lindsay Bainbridge from Pitcher Partners Melbourne said the Seer Medical board is seeking the right partner to drive the release of its next generation model into global markets.

Administrator Lindsay Bainbridge of Pitcher Partners Melbourne said the board of Seer Medical was seeking the right partner who could drive the release of its new model into global markets, with the US total addressable market estimated to be worth $2.7 billion.

“This is a strong business opportunity for a partner who can help Seer Medical return to a booming market for epilepsy detection, and re-enter global markets,” he said.

Expressions of interest can be directed to Bainbridge at Pitcher Partners.