Radoff-JEC group calls for SEER sale amid governance concerns

The Radoff-JEC Group, holding approximately 7.6% of Seer Inc. (NASDAQ: SEER) shares, sent an open letter to independent directors calling for immediate sale of the biotechnology company.

The investor group criticized CEO Omid Farokhzad's performance, noting that since 2022, Seer's annual revenue increased by $1.1 million while operating cash burn exceeded $160 million. The company's 2026 guidance suggests 3% revenue growth requiring over $40 million in cash burn.

Seer shares trade at $101.6 million market capitalization against $240.5 million in cash and no debt, according to the letter. The stock declined over 17% following recent earnings and guidance announcements.

The group highlighted a stockholder lawsuit filed in Delaware Court of Chancery alleging board members breached fiduciary duties when adopting a poison pill limiting beneficial ownership to 4.9% of common stock. The pill was implemented on February 26 under tax benefit preservation rationale.

The letter detailed several concerns about Farokhzad's track record, including his 2021 sale of over 1 million Seer shares at $64.15 each, netting nearly $100 million profit before the stock's subsequent 97% decline. It also referenced his involvement with BIND Therapeutics, which was sold through bankruptcy court auction to Pfizer Inc.

The group noted Seer's relationship with PrognomIQ Inc., spun out before the company's initial public offering, where Farokhzad serves as board chair and Seer maintains a 20% ownership stake. PrognomIQ represents Seer's largest revenue source since the IPO.

Seer has experienced six director resignations during its approximately five years as a public company, the letter stated.

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