iRhythm Technologies sets terms for $75m IPO

October 11, 2016 By Brad Perriello

iRhythm Technologies last week set the terms on its forthcoming initial public offering, saying it plans to float 5.35 million shares priced between $13.00 and $15.00 apiece.

At the midpoint, the IPO would fetch $74.9 million. San Francisco-based iRhythm has said it plans to use the proceeds to expand the commercial and clinical footprint of its Zio wearable cardiac monitor.

The flotation’s proposed range, even at the high end, is lower than the $86 million iRhythm indicated with its initial IPO filing last month.

The company won 510(k) clearance for the Zio device in 2009. It’s designed to be worn for 14 days to log heartbeat data; the company says Zio has been used on 500,000 patients, collecting some 125 million hours of “curated heartbeat data, creating what we believe to be the world’s largest repository of ambulatory ECG patient data.”

“This data provides us with a competitive advantage by informing our proprietary machine-learned algorithms, which may enable operating efficiencies, gross margin improvement and business scalability. We believe the Zio service is well-aligned with the goals of the U.S. healthcare system: improving population health, enhancing the patient experience and reducing per-capita cost,” the company said in its 1st registration filing.

iRhythm, which employed 356 workers as of June 30, said annual sales grew 66.4% to $36.1 million last year, as losses widened 44.3% to -$22.8 million. Sales grew 79.9% during the 1st half of this year, to $28.6 million, with losses up 12.8% to -$10.6 million, according to the filing.

The company said it had reimbursement contracts with government and private health insurers covering 200 million of the roughly 290 million U.S. patients whose insurance covers the device as of June 30.

“We believe we have the first mover advantage in the market, particularly related to the progress we have made in securing government and commercial payor coverage and contracts,” iRhythm said in the filing. The company estimated that Zio’s market opportunity is as large as $1.4 billion.

Apart from its San Francisco headquarters, iRhythm has facilities in Lincolnshire, Ill., and Houston; the Zio device is made at a plant in Cypress, Calif., the company said.

iRhythm said it plans to list on the NASDAQ exchange under the “IRTC” symbol. J.P. Morgan and Morgan Stanley are joint bookrunners on the flotation.

This imaging device could be a breakthrough for breast cancer treatment
OncoRes Medical’s system may detect cancer cells on a microscopic scale during a lumpectomy, potentially averting the need for a second breast cancer surgery. Having breast surgery to remove a cancerous lump is traumatic enough. Learning that you’ll need another operation to remove cancer cells that the surgeon couldn’t detect the first time only adds… […]
Americans apparently trust healthcare professionals more than FDA, CDC
As the U.S. tries to reach a post-COVID-19 pandemic “normal,” Americans are placing more trust in nurses and doctors than agencies such as the CDC and FDA, according to a new survey from the Robert Wood Johnson Foundation and Harvard T.H. Chan School of Public Health. The survey — conducted Feb. 11 – March 15,… […]
May 2021 Issue: Unmasking the response to the next pandemic
3M, others may have unmasked a solution to future N95 shortages The 10 largest orthopedic device companies in the world How big medtech fared during a year of COVID-19 Medtech moves beyond the pandemic The COVID-19 pandemic is still very much with us, and medtech companies continue churning out devices to meet coronavirus patient needs.… […]
FDA warns about consumer electronics and implanted devices
The FDA is advising the public that certain consumer devices have high-field strength-magnets that can send medical devices into “magnet mode.” Magnets of this nature can affect the normal operations of implanted medical devices until the magnetic field is moved, according to the FDA news release. These medical devices are designed with a “magnet mode”… […]
Abbott recalls pacemakers that may short circuit
Abbott is recalling certain pacemakers that may short circuit because they can allow moisture inside, according to the FDA. The recall covers 61,973 Assurity and Endurity pacemakers manufactured by St. Jude Medical and distributed from April 2015 to February 2019. (Abbott acquired St. Jude in 2017). A small number of devices from that time frame… […]
Genesis shoulder surgery software gains FDA nod
Genesis Software Innovations announced that it has received FDA clearance for its Preview 3D shoulder arthroplasty planning software. This clearance is the first orthopedic solution under the FDA’s new QIH classification for software solutions based on artificial intelligence (AI). Preview shows orthopedic surgeons a representation of the patient’s shoulder anatomy as a 3D model, allowing them… […]
Hologic launches $20M women’s health equity initiative
Hologic this week announced an effort to improve healthcare for Black and Hispanic women in the U.S. Project Health Equality (PHE) will focus initially on how Black and Hispanic women experience healthcare in different regions of the country and on making meaningful, sustainable improvements, according to the Marlborough, Mass.-based company. Hologic’s partners in the $20… […]
Tech Etch names its first CFO
Tech Etch today announced the appointment of Brian Roberts as chief financial officer. The Plymouth-Minn.-based company manufactures thin metal components, flexible printed circuits and EMI/RFI shielding for the medical, military and aerospace industries. “This newly created role will increase shareholder value, strengthen our employee-owner culture and values, expand our investment capabilities and support Tech Etch… […]
Bose jumps into hearing aid market
Bose just introduced FDA-cleared, direct-to-consumer hearing aids for adults with mild to moderate hearing loss. Users can use a smartphone app to fit, program and control a SoundControl hearing aid without a doctor visit, hearing test or prescription, according to Framingham, Mass.-based Bose. Each hearing aid will retail for $849.95 starting May 18th in five… […]
Handwriting in your head could turn into words on a screen
Stanford University researchers have developed a system that enables a paralyzed person to write letters just by thinking about them. They designed the novel brain-computer interface (BCI) to restore the ability to communicate in people with spinal cord injuries and neurological disorders such as amyotrophic lateral sclerosis (ALS). The study, published in Nature, was funded… […]
How PhysIQ is advancing digital therapeutics through its partnership with Janssen
A partnership with J&J’s Janssen Pharmaceuticals is helping PhysIQ advance with its device-agnostic clinical data collection and analysis platform. Over the course of the last year and some change, the impact of digital health and the need for it has increased by an immeasurable amount. Virtual care became the norm after the COVID-19 pandemic hit, and, although… […]