iRhythm touts new, timely device on Q2 earnings call

By Jonah Comstock
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iRhythm Technologies, maker of the ZIO patch peel-and-stick heart monitor, announced on its second quarter earnings call that it increased its revenue 52 percent year over year (for a total revenue of $23.9 million) and achieved its first cash flow break-even quarter.

CEO Kevin King also shared a rough timetable for the company's forthcoming Zio AT product, which received FDA clearance in June. The Bluetooth and cellular-connected device will allow the company for the first time to add realtime monitoring to its capabilities, which also opens it up to new market segments. 

"Since receiving FDA clearance, we have initiated early market testing in select locations across the country. Additionally, we have started the process of establishing in-network contracts with commercial payers for this new service, which is a critical step in our launch process," King said. "Over the next several months, we will be focused on the remaining tasks needed for broader commercial release and we will provide additional details as they unfold."

King estimated that the new capabilities would add about 10 percent -- or 500,000 patients -- to iRhythm's addressable market by making the offering relevant for patients with more critical symptoms such as syncope, pre-syncope and ventricular tachycardia.

The quarter also saw iRhythm, in partnership with Stanford University scientists, investigating the possibilities of artificial intelligence in ECG monitoring. King also talked about this collaboration on the call.

"These ongoing research investments support our goal of continuing improvements that enable our operating costs to decrease as volume continues to grow," he said. "This work also demonstrates iRhythm’s commitment to staying well ahead of the curve and competition as the leader in arrhythmia detection."

The company is also seeing increasing support from professional societies as a viable alternative to the Holter monitor as efficacy data continues to mount.