As Share Price Doubles, BioTelemetry Makes a Quiet, Yet Significant, Presence in Chester County

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By Bob Mitchell

BioTelemetry, Inc., a mobile and wireless medical technology company, is quietly making its mark on the biotech industry from Malvern, Chester County.

The company, which provides cardiac and mobile blood-glucose monitoring, centralized medical imaging, and equipment manufacturing, traces its roots to CardioNet in San Diego, which was formed in 1994. CardioNet merged with BioTel in 2010. In 2013 the company reincorporated to operate as BioTelemetry.

BioTelemetry’s (Nasdaq: BEAT) shares hit a record high of $77.59 on February 15th. (Image via Wall Street Journal)

The company’s share prices doubled from $30.75 on April 2, 2018 to $62.11 on March 28, 2019, which was down from a record high of $77.59 on February 15, 2019.

Alliances and acquisitions

In 2014, the company formed several strategic alliances, including Wellbridge Health in January 2014, and then went into acquisition mode, buying-up Mednet Technology in February 2014, and Cardiac Patient Services Business of Biomedical Systems, Corp. in March 2014.

In April 2016, the company acquired VirtualScopics, and the ePatch division of DELTA Danish Electronics, Light and Acoustics.

In December 2016, it acquired Telcare’s Remote Diabetes Management Platform.

In July 2017, the company acquired LifeWatch AG, and in February 2018 the company combined into the world’s largest remote cardiac monitoring services under the BioTel Heart brand. In January, the company acquired Geneva Healthcare, a provider of remote monitoring for implantable cardiac devices.

During a February earnings call, President and CEO Joseph H. Capper, said the company’s 2018 successes were “driven by our continued significant mobile cardiac telemetry and extended-wear Holter patient heart monitor growth, as well as 26 percent year-over-year growth in research revenue.”

Through its’ integration of LifeWatch with BioTel Heart, a remote patient cardiac monitoring system ahead of schedule, the company is expecting growth this year.

In addition, the company will finalize its acquisition of Geneva Healthcare, which transforms cardiac device data into information that improves clinical workflow and patient care for electrophysiologists. This will allow BioTelemetry to extend its reach into the implantable cardiac device market and a source of remote cardiac monitoring, the CEO said.

BioTelemetry’s President and CEO Joseph H. Capper

Geneva’s acquisition gives BioTelemetry a cloud-based platform to remotely monitor patients with implantable cardiac devices, such as pacemakers, defibrillators and loop recorders. The Geneva platform lets physicians order patient monitoring, view results and request routine device checks through a portal, which helps patients comply with their doctor’s orders.

We found “[Geneva] clients valued the benefits of the platform and that has translated into impressive growth for Geneva,” Capper said.

The next step will be to merge the functionality of Geneva with BioTel Heart’s user interface, providing workflow and data management efficiencies to the thousands of clients served.

“We believe the combination of the Geneva solution with our current remote monitoring offering presents an opportunity to radically change the way we relate to customers in the cardiology market. And it will further solidify our leadership position in remote cardiac monitoring while providing access to over $1 billion of additional market opportunity,” Capper said.

Competitive market

The biomedical market is growing in competition. Capper said BioTelemetry likes to stay one step ahead of its competition. “…what we have built cannot be easily replicated. We have applied our knowledge of the industry to develop a highly effective strategy that is yielding consistently strong results. We have also been making key acquisitions and investments that have been critical to this ongoing success.”

BioTelemetry’s competitors include: AliveCor, InfoBionic, Preventice Solutions, Qardio and CardioSecur.

“We continue to outperform relative to the competitive set,” Capper said during last month’s earnings call. “Obviously, we launched two new products this year and both of them are getting wide market acceptance; one growing at double digits in a relatively mature market, the other growing in triple digits. And we’re actually seeing growth in our two legacy product lines, as well.”

BioTelemetry’s ePatch continuously records and stores heartbeats that are analyzed by certified cardiac technicians at BioTel Heart.

The company expects to expand in the cardiac monitoring market, building on its research services, and identifying other markets that can benefit from remote monitoring technologies.

The company expects double-digit growth this year. During the fourth quarter of 2018, its revenue grew by 13 percent to $103.6 million. 2018 revenue was $399.5 million, up 39 percent from 2017.

The company also has a strong presence in research, showing the third consecutive year with at least 20 percent growth.

Last year the company invested in its infrastructure and additional business development resources — a recurring theme across all units of BioTelemetry, Capper said. “We are starting to have success incorporating our proprietary ePatch monitor as part of new cardiac studies,” he said. BioTelemetry saw increased activity in a large study with a top 10 pharmaceutical company.

“It was clear that the strength of our position in the cardiac market and the access to our cutting-edge technology, like ePatch, helped win the business,” Capper said.

About BioTelemetry

Location: 1000 Cedar Hollow Road, Suite 102 in Malvern

Web: www.gobio.com

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