CeriBell Expands EEG Platform Beyond Seizures With Delirium, Pediatric Push

Key Points

• CeriBell is expanding beyond seizure detection into neonatal, pediatric and delirium monitoring, raising its estimated U.S. total addressable market to more than $3.5 billion. A stroke-monitoring product is also in development after receiving FDA breakthrough designation.
• The platform is now used in 712 U.S. hospitals, with sales representatives increasing account additions from the mid-20s to the low 30s per quarter. The company is also targeting greater utilization within existing hospitals and multi-hospital health-system deals.
• CeriBell plans to launch a new recorder with a camera, larger display, EKG integration and continuous-recording capabilities, while investing in future growth rather than near-term operating leverage. Its litigation with Natus remains active, with a preliminary ITC decision expected in November and a final decision around March 2027.

CeriBell NASDAQ: CBLL outlined its plans to expand its brainwave-monitoring platform beyond seizure detection, pointing to new products for delirium, pediatric patients and eventually stroke as it continues to build its hospital customer base.

Speaking at Canaccord’s 46th Annual Global Growth Conference, Chief Financial Officer Scott Blumberg said the medical technology company is focused on making electroencephalogram, or EEG, monitoring faster and more accessible in emergency departments and intensive care units. Traditional EEG systems can require large equipment as well as specialized technicians and neurologists, resources that may not be readily available in acute-care settings, he said.

CeriBell’s technology can be set up in about five minutes by trained medical professionals, often nurses, according to Blumberg. The company has paired the hardware with artificial intelligence-powered detection algorithms intended to help bedside clinicians assess neurological conditions in real time.

Blumberg said CeriBell’s technology has been supported by more than 50 publications and more than 150 publications and abstracts. He said the company’s data indicate the platform can support treatment decisions, reduce medication overuse, lower length of stay and reduce patient transfers.

The company is currently used in 712 U.S. hospitals, Blumberg said. Its initial focus has been seizure detection in acute care, a market it estimates represents about $2 billion in U.S. total addressable market opportunity. He said the company is roughly 4% penetrated in that core market.

Sales force maturation and hospital utilization

Blumberg described CeriBell’s commercial organization as having two separate functions: territory managers focused on acquiring new accounts and clinical account managers focused on increasing usage within existing accounts.

The company expanded its territory-manager organization from roughly 35 representatives to 55 after its initial public offering. Based on six to seven years of internal history, Blumberg said it generally takes about a year for a territory manager to launch a first account and become productive. He said productivity increases during the second year, when representatives reach their maximum rate of account additions.

While CeriBell has raised its account-acquisition pace from the mid-20s to the low 30s accounts per quarter, Blumberg said he expects the rate to continue increasing over time rather than remaining at that level.

He also said the company sees substantial opportunity to increase usage at current hospital customers. CeriBell’s technology often replaces EEG monitoring that otherwise would not have been performed because a hospital lacked access to the service, he said.

Among hospitals of comparable size, CeriBell’s top 10% of accounts conduct roughly three times the monitoring volume of average accounts, according to Blumberg. The company’s strategy is to train more doctors, expand into additional hospital departments and incorporate the technology into treatment protocols to encourage more consistent use.

New indications, reimbursement and hardware

CeriBell is also expanding the platform into additional patient populations and disease states. Blumberg said the company recently added neonatal and pediatric applications, although he characterized the rollout as still early because activating new departments can be a multi-month sales process.

The company has received clearance for a delirium-detection product and is conducting a pilot with a small number of sites, with an intended launch later this year. CeriBell also received favorable Centers for Medicare & Medicaid Services reimbursement through a new technology add-on payment, or NTAP, that provides more than $2,000 per eligible patient, Blumberg said.

He said the delirium reimbursement applies to a relatively narrow patient population, including Medicare patients for whom hospitals have negative margins. Blumberg characterized the payment primarily as an “objection handler” that could help hospitals adopt the technology more quickly, rather than as a direct driver of usage.

CeriBell is deciding whether delirium will be monetized through a specific charge or through higher platform utilization and demand for additional recorders. Early pilot results, though based on a small sample, have shown usage increases across sites, he said.

The company estimates that neonatal, pediatric and delirium applications have increased its U.S. total addressable market to more than $3.5 billion, excluding future indications and markets outside the U.S.

For stroke, CeriBell has received an FDA breakthrough designation, though the product remains in development. Blumberg said the company is making steady progress toward an eventual large-vessel-occlusion stroke offering.

CeriBell also plans to introduce a new recorder platform and two new disposable products. The new recorder will include a built-in camera, a larger screen, integration with technologies such as EKG, and the ability to plug in and record continuously. Blumberg said the features are intended to support longer-duration monitoring and broader use across seizure, delirium and eventually stroke.

Longer-term commercial strategy

In addition to individual hospital sales, CeriBell has created a strategic account manager function aimed at regional health systems. Blumberg said the company has built a pipeline of multi-hospital opportunities involving four to 10 facilities, compared with its more typical one- or two-hospital transactions.

He said the initiative could translate into more purchase orders and account additions in 2027, though larger system transactions may move more slowly. Enterprise pricing could also be part of discussions for larger health systems, he said, noting CeriBell has reported 89% gross margins.

Blumberg said the company has kept adjusted EBITDA relatively consistent since becoming public, excluding litigation costs, while continuing to invest in sales capacity and product launches. Rather than prioritize near-term operating leverage, he said CeriBell is investing to support growth in 2028, 2029 and beyond while seeking to retain the ability to achieve profitability using cash on hand.

Regarding litigation with Natus, Blumberg said a preliminary International Trade Commission decision is scheduled for November, followed by a final decision expected around March 2027. A related Delaware district court case remains stayed, with future timing dependent on the ITC outcome.

About CeriBell (NASDAQ:CBLL)

CeriBell Corp NASDAQ: CBLL is a healthcare technology company specializing in the design, manufacture and sale of automated newborn hearing screening devices. The company offers a suite of medical diagnostic tools based on otoacoustic emissions (OAE) and auditory brainstem response (ABR) technologies, enabling early detection of auditory impairments in infants. CeriBell's solutions are used in hospitals, birthing centers and audiology clinics to support universal newborn hearing screening programs aimed at improving language development outcomes through prompt intervention.

The company's product portfolio includes handheld and desktop screening units, proprietary software for data management, and accessories designed to streamline testing workflows.

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