iRhythm Technologies Inc (IRTC): Bull/Bear Discussion

iRhythm Technologies Inc

Healthcare, Event Driven/Special Sit


Presented:05/16/2022
Price:$133.00
Cap:$3.96B
Current Price:$60.13
Cap:$1.88B

Presented

Date05/16/2022
Price$133.00
Market Cap$3.96B
Ent Value$4.58B
P/E RatioN/A
Book Value$8.23
Div Yield0%
Shares O/S29.79M
Ave Daily Vol380,576
Short Int5.96%

Current

Price$60.13
Market Cap$1.88B
iRhythm Technologies, Inc. engages in the development of monitoring and diagnostic solutions for detection of cardiac arrhythmias. It offers Zio XT, is a wearable patch-based biosensor, which continuously records and stores ECG data from every patient heartbeat for up to 14 consecutive days, and Zio AT, which provides ECG data but also provides physicians with actionable notifications during the wear period. The company was founded by Uday N. Kumar in September 2006 and is headquartered in San Francisco, CA.

On May 16, 2022, we hosted a bull/bear discussion on iRhythm Technologies Inc (IRTC). Consisting of two bulls, two bears, and one investor who was previously a bear but is becoming more bullish, the group shared a range of opinions on reimbursement rates, market penetration, the competitive landscape, and the long-term outlook for IRTC. In addition, on Monday, May 23rd at 11:00 a.m., we are hosting a second update call on CMS’s 2023 final proposal for national pricing with James Muller, President of Muller Consulting & Data Analytics (MCDA). You can find further details and RSVP information for the call here.

Publicly traded companies mentioned herein: iRhythm Technologies Inc (IRTC), Koninklijke Philips NV (PHG)

CMS Reimbursement Rates

The majority of the discussion centered around CMS reimbursement rates, with the investors sharing their thoughts on cost methodologies and their outlooks on CMS rates. The bulls shared their base case CMS national pricing estimates of $250, the previously bearish participant’s base case is $200, and a bear considers $150 the fairest outcome. Ultimately, the bulls and the bears disagree on the most likely pricing methodology. The bulls expect CMS to use the cost to physicians, while the bears think the cost to the supplier is more appropriate.

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