A look at BioTelemetry, after Phillips announces $2.8 billion deal

Tom Paine

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: 

BioTelemetry inc.  
cardionet

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.

1994

CardioNet, Inc. founded in San Diego

CardioNet logo

2002

FEBRUARY

CardioNet, Inc. announces FDA approval of MCOT™ and opens the first CardioNet monitoring center

2007

FEBRUARY

CardioNet, Inc. announces acquisition of PDSHeart

MARCH

Rothman Study published – MCOT™ provided a significantly higher diagnostic yield compared to traditional loop event monitoring
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DECEMBER

CardioNet, Inc. releases third generation of MCOT™ monitoring devices

2008

MARCH

CardioNet, Inc. completes Initial Public Offering

OCTOBER

CardioNet, Inc.’s MCOT™ System Receives Category I CPT Codes and Reimbursement Rates

2010

NOVEMBER

CardioNet, Inc. announces definitive merger agreement with Biotel, Inc.

2011

DECEMBER

CardioNet, Inc. announces the launch of its Next Generation MCOT™ Device

2012

FEBRUARY

CardioNet, Inc. acquires ECG Scanning & Medical Services, Inc.

ECG Scanning & Medical Services logo

AUGUST

CardioNet, Inc. acquires CardioCore Lab, Inc.

Cardiocore logo

NOVEMBER

CardioNet, Inc. announces Clinical Study Supporting the Efficacy of CardioNet MCOT™ in Detecting Atrial Fibrillation in Cryptogenic Stroke Patients

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NOVEMBER

CardioNet, Inc. announces launch of its New Wireless Event Monitor

2013

FEBRUARY

CardioNet, Inc., IMEC and Delta partner to develop next generation cardiac monitoring products

APRIL

CardioNet, Inc. modifies business structure in support of growth

Company reincorporates as BioTelemetry, Inc.

BioTelemetry logo

JUNE

BioTelemetry, Inc. announces launch of MCOT™os 2:1 Device

NOVEMBER

BioTelemetry, Inc. announces FDA Clearance of CardioKey

DECEMBER

BioTelemetry, Inc. announces newly published research Demonstrating Significant Cost Savings With Use of Mobile Cardiac Telemetry

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2014

JANUARY

BioTelemetry, Inc. and Wellbridge Health, Inc. announce Strategic Alliance

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FEBRUARY

BioTelemetry, Inc. acquires Mednet Technology

MedNet Logo

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MARCH

BioTelemetry, Inc. acquires the Cardiac Patient Services Business of Biomedical Systems, Corp.

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JUNE

BioTelemetry, Inc. announces major advancements in Research Services – Acquires Radcore Lab, LLC

Radcore Labs logo

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AUGUST

BioTelemetry, Inc. executive team rings the Nasdaq Bell

2016

APRIL

BioTelemetry, Inc. Signs Definitive Agreement to Acquire VirtualScopics, Inc.

VirtualScopics logo

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APRIL

BioTelemetry, Inc. Announces the Acquisition of the ePatch Division of DELTA Danish Electronics, Light and Acoustics

Delta logo

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JULY

BioTelemetry, Inc. Announces FDA Approval of Its Next Generation Device, the MCOT™ Patch

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DECEMBER

BioTelemetry, Inc. Announces Acquisition of Telcare’s Remote Diabetes Management Platform

Telcare logo

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2017

FEBRUARY

Sprint & BioTelemetry, Inc. Receive a 2017 IoT Evolution Business Impact Award

IoT Evolution Expo logo

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JULY

BioTelemetry, Inc. Completes LifeWatch AG Acquisition

LifeWatch Logo

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2018

FEBRUARY

BioTelemetry, Inc. combines the world’s largest remote cardiac monitoring services under BioTel Heart brand

BioTel Heart logo

2019

March

BioTelemetry, Inc. Completes Acquisition of Geneva Healthcare, Inc.

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JULY

BioTelemetry, Inc. Acquires Sweden-based ADEA Medical AB and Expands International Service Offering

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Contact BioTelemetry

General Inquiries

Phone: 888.312.BEAT (2328)
Fax: 610.828.8048

Investors Information

Contact: Heather Getz, EVP, CFO & CAO
Phone: 800.908.7103
InvestorRelations@biotelinc.com

Media Inquiries

Phone: 800.908.7103

Corporate Headquarters

BioTelemetry, Inc.
1000 Cedar Hollow Road, Suite 102
Malvern, PA 19355
888.312.BEAT (2328)
610.828.8048 (fax)

© 2020 BioTelemetry, Inc. All rights reserved.