Only 27% of US hospitals can run an EEG. Epitel raises $26m for the rest
Epitel has raised $26m in a Series B round to expand a wireless EEG system that patients wear at home.
Catalyst Health Ventures and Genoa Ventures co-led the round. The Salt Lake City company plans to allocate the funds for sales, marketing, and distribution rather than research.
The gap Epitel is aiming at
One striking figure behind the pitch comes from a peer-reviewed study in Neurology: Clinical Practice (2023) stating that only 27% of US hospitals have EEG capacity. With 9.2 million Americans experiencing seizures annually, Epitel argues that 40% lack access to this crucial test.
What the device actually is
REMI uses four disposable wearable sensors and records for up to 30 days. Data travels to Persyst Mobile, a platform neurologists are already familiar with, enabling them to analyze it in existing software.
It’s important to note: While Epitel markets REMI as a "wireless EEG system," it’s more accurately described as a "wearable reduced-channel EEG system", using just four electrodes, according to their research paper.
The label is narrower than the announcement
Epitel emphasizes diagnosis and AI assistance in accelerating the process. However, the FDA clearance states that REMI:
- "does not make any diagnostic conclusion about the subject’s condition"
- "is intended as a physiological signal monitor"
- "does not mark REMI EEG records in real time."
This is standard language for cleared medical devices, emphasizing that Epitel’s system provides data for physicians to interpret, rather than making its own diagnoses.
The age gap in the AI
REMI monitoring is FDA-cleared from age one, but the automated event detection feature (REMI Vigilenz) is only approved from age six. This reflects the challenge of applying artificial intelligence to analyze children’s EEG patterns, which differ significantly from adults’.
A parallel with DexCom
Epitel CEO Steve Pacelli brings experience from DexCom, a company that revolutionized blood glucose monitoring by moving away from intermittent testing towards continuous wearables. Epitel aims to do the same for EEG, bringing measurement out of the clinic and into patients’ homes over extended periods.