iRhythm Technologies (Nasdaq: IRTC) + announced today that it signed an exclusive license agreement with BioIntelliSense to develop and commercialize cardiac monitoring technology.

The deal centers around certain patented technology assets within ambulatory cardiac monitoring (ACM). iRhythm aims to utilize BioIntelliSense’s multiparameter sensing technologies to expand the capabilities of its own platform.

“We believe that the licensed technology from BioIntelliSense can advance our premium positioning within ACM and further enables us to enter other adjacent indications such as obstructive sleep apnea over time,” said Quentin Blackford, iRhythm President and CEO. “By incorporating medical grade, connected, multi-sensor capabilities, we believe iRhythm will be well positioned to deliver broad clinical insights that improve patient outcomes, enhance clinical and operational efficiency, and reduce costs to the healthcare system. We look forward to collaborating with the BioIntelliSense team to accelerate the next chapter of connected patient care.”

BioIntelliSense offers a set of vital sign indicators that enable early identification and detection of adverse trends. This helps to improve patient monitoring from in the hospital to in the home through medical grade wearables and data services. Offerings include the FDA-cleared BioButton wearable, plus white light-enhanced pulse oximetry.

The company has previously inked partnerships with medtech giants Medtronic and Philips as well.

“We couldn’t be more excited about this collaboration with iRhythm, whose deep experience in ECG ambulatory cardiac monitoring is a perfect complement to the continuous vitals sign and medical-grade wearable expertise of BioIntelliSense,” said Dr. James Mault, founder and CEO of BioIntelliSense. “Through the integration of advanced biosensors and algorithmic-based analytics, we can collectively address a critical gap in the current healthcare system, by providing clinicians with more timely and actionable information to facilitate earlier clinical intervention and better, safer patient care.”

What the licensing agreement between iRhythm and BioIntelliSense entails

Under the agreement, BioIntelliSense granted iRhythm an exclusive license to develop and commercialize pulse oximetry, accelerometry and trending non-invasive blood pressure technologies for use within iRhythm’s ACM products and services.

In connection with the agreement, iRhythm agreed to provide an undisclosed upfront payment. It also includes additional consideration based on future technology validation and regulatory milestones. BioIntelliSense also remains eligible for royalties on annual net sales of products and services that include licensed rights in-home sleep testing.

The license consideration payable to BioIntelliSense will be recognized on iRhythm’s consolidated statements of operations as acquired in-process research and development (“IPR&D”) expense. BioIntelliSense may earn additional consideration through Dec. 31, 2026.

Following the agreement, iRhythm reaffirmed its existing 2024 financial guidance. The company anticipates no material incremental development expenses in 2024, other than the acquired IPR&D expense, associated with the transaction.