Malvern-based BioTelemetry announced on Friday it was being acquired by Phillips for an enterprise value of $2.8 billion , one of the largest tech transactions of the year for Philly. Born as CardioNet, it gained an advantage for having pioneered use of a new technology, wireless connectivity for remote cardiac monitoring.
But it wasn’t easy. There were several existential threats along the way before its business model proved out to be successful.
CardioNet was founded a quarter century ago in San Diego, by Jim Sweeny, a serial entrepreneur in health technology. (BioTelemetry still has a San Diego office.) Sweeny raised over $250 million in capital before leaving CardioNet in late 2007, when the company moved to Philadelphia, and about five months before the company’s IPO, to focus on another company. CardioNet went public in March 2008.
The biggest crisis for CardioNet came in 2009 when Highmark CMS (the regional Medicare administrator) cut its reimbursement rate for remote cardiac monitoring from $1,123.07 to $754, more than management anticipated. The rate cut plus the financial crisis at the time left CardioNet wondering publicly if it could survive by itself. Highmark CMS adjusted the rate to be slightly higher in 2010, and CardioNet learned how to survive on it. But that’s when rumors first surfaced that Phillips might be interested in acquiring CardioNet.
In 2010, Joseph Capper became CEO of CardioNet, ended a period of management instability. He remains in that position (for BioTelemetry) today.
In April 20113, CardioNet became BioTelemetry, keeping the “BEAT” symbol for its stock. The name change reflected a broader focus beyond only cardiology.
The company’s second major product line was wireless blood glucose monitoring for diabetes management.
In 2017, BioTelemetry announced a partnership with Apple to provide cardiac monitoring services in conjunction with the Apple Heart Study. The study was expected to discover undiagnosed irregular heart rhythms, such as atrial fibrillation, using the Apple Watch and the dedicated “Apple Heart Study” App. The study was technically successful, although usage patterns among trial participants were less than might have been expected.
Nonetheless, the test increased awareness of BioTelemetry.
Revenue for 2019 grew to just under $44o million, a 10% increase over 2018.Revenue through nine months of 2020 was flat with last year, probably slowed by the pandemic. The company has remained profitable.
Acquisitions have played important roles in BioTelemetry’s growth.
This timeline comes from BioTelemetry’s website:
Founded a quarter century ago, BioTelemetry remains committed to leading the mobile and wireless medical technology industry. We focus on the delivery of health information to save and improve lives, while reducing the cost of care. Our ability to invent and share ideas and technologies with others ensures that our customers and patients receive the very best in care. Today, the Company provides cardiac and mobile blood-glucose monitoring, centralized medical imaging and original equipment manufacturing serving the healthcare and clinical research sectors.
CardioNet, Inc. founded in San Diego
CardioNet, Inc. announces FDA approval of MCOT™ and opens the first CardioNet monitoring center
CardioNet, Inc. announces acquisition of PDSHeart
Rothman Study published – MCOT™ provided a significantly higher diagnostic yield compared to traditional loop event monitoring
CardioNet, Inc. releases third generation of MCOT™ monitoring devices
CardioNet, Inc. completes Initial Public Offering
CardioNet, Inc.’s MCOT™ System Receives Category I CPT Codes and Reimbursement Rates
CardioNet, Inc. announces definitive merger agreement with Biotel, Inc.
CardioNet, Inc. announces the launch of its Next Generation MCOT™ Device
CardioNet, Inc. acquires ECG Scanning & Medical Services, Inc.
CardioNet, Inc. acquires CardioCore Lab, Inc.
CardioNet, Inc. announces Clinical Study Supporting the Efficacy of CardioNet MCOT™ in Detecting Atrial Fibrillation in Cryptogenic Stroke Patients
CardioNet, Inc. announces launch of its New Wireless Event Monitor
CardioNet, Inc., IMEC and Delta partner to develop next generation cardiac monitoring products
CardioNet, Inc. modifies business structure in support of growth
Company reincorporates as BioTelemetry, Inc.
BioTelemetry, Inc. announces launch of MCOT™os 2:1 Device
BioTelemetry, Inc. announces FDA Clearance of CardioKey
BioTelemetry, Inc. announces newly published research Demonstrating Significant Cost Savings With Use of Mobile Cardiac Telemetry
BioTelemetry, Inc. and Wellbridge Health, Inc. announce Strategic Alliance
BioTelemetry, Inc. acquires Mednet Technology
BioTelemetry, Inc. acquires the Cardiac Patient Services Business of Biomedical Systems, Corp.
BioTelemetry, Inc. announces major advancements in Research Services – Acquires Radcore Lab, LLC
BioTelemetry, Inc. executive team rings the Nasdaq Bell
BioTelemetry, Inc. Signs Definitive Agreement to Acquire VirtualScopics, Inc.
BioTelemetry, Inc. Announces the Acquisition of the ePatch Division of DELTA Danish Electronics, Light and Acoustics
BioTelemetry, Inc. Announces FDA Approval of Its Next Generation Device, the MCOT™ Patch
BioTelemetry, Inc. Announces Acquisition of Telcare’s Remote Diabetes Management Platform
Sprint & BioTelemetry, Inc. Receive a 2017 IoT Evolution Business Impact Award
BioTelemetry, Inc. Completes LifeWatch AG Acquisition
BioTelemetry, Inc. combines the world’s largest remote cardiac monitoring services under BioTel Heart brand
BioTelemetry, Inc. Completes Acquisition of Geneva Healthcare, Inc.
BioTelemetry, Inc. Acquires Sweden-based ADEA Medical AB and Expands International Service Offering
Phone: 888.312.BEAT (2328)
Contact: Heather Getz, EVP, CFO & CAO
1000 Cedar Hollow Road, Suite 102
Malvern, PA 19355
© 2020 BioTelemetry, Inc. All rights reserved.