iRhythm Technologies last week registered for an initial public offering worth $86 million it plans to use to expand the commercial and clinical footprint of its Zio wearable cardiac monitor.
San Francisco-based iRhythm 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 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.