BioTelemetry (BEAT 50.20, +1.00, +2.03%) is a name that few people are familiar
with, but the stock has been trading to new all-time highs this week, so we
wanted to provide some color on the name ahead of its Q2 earnings report next
week (July 25 after the close). Formerly known as CardioNet, BioTelemetry
primarily provides cardiac monitoring services, through its Mobile Cardiac
Telemetry (MCT) service. This service helps people with heart conditions to
better monitor any adverse events.
Its MCT service uses a lightweight, patient-worn sensor attached to electrodes. These devices capture ECG data on a compact, wireless, handheld monitor. When the monitor detects an arrhythmic cardiac event, it automatically transmits the electrocardiogram data to BEAT's Monitoring Centers, meaning that events of significance can be caught and recorded even when patients have not noticed or are not able to notice event-related symptoms. At the Monitoring Centers, which operate 24/7, certified cardiac monitoring specialists analyze the sent data, respond to events of particular urgency, and update physicians with patient results.
A nice feature of the MCT device is its ability of storing 30 days of continuous ECG data, which contrasts with the 10 minute maximum provided by a typical event monitor and the 24-hour maximum of a typical Holter monitor. In addition to MCT services, BEAT also offers Holter monitoring as well as Pacemaker and INR monitoring.
On the product development front, BEAT is excited about its next-generation MCT device, which uses a patch form factor. The MCT Patch, which has been approved by the FDA, made its full commercial launch in 1Q18. It uses an ultralight and flexible hydrocolloid patch that performs cardiac monitoring while adhered directly to the skin, ensuring a high level of comfort and convenience. BEAT's extended wear Holter devices are also now offered in a patch form factor.
Also, in mid-June, its BioTel Care unit announced the release of its next-generation wireless blood glucose monitor for diabetes management. BioTel Care had previously developed the first FDA-cleared, cellular-enabled glucometer. It supports the real-time transmission and consolidation of patient data stored in an FDA-cleared cloud. Based on the success of that technology, BioTel Care launched its next-generation blood glucose monitor, which includes an innovative touch-screen user interface, enabling patients to easily test and monitor blood glucose levels while simultaneously capturing a wide range of additional personal health data, all of which can be easily and quickly communicated to patients’ health care providers. Clinicians can access and track their patients' data through the BioTel Care cloud and can provide immediate feedback, according to need, directly to their patients via the new monitor's messaging features. Patients can also track their own data with a host of informative graphical summaries readily available on the monitor.
BEAT has transformed itself from a small heart monitoring company to a big player in this space through acquisitions and through successful product launches and updates, as discussed above. On the M&A front, in July 2017, BEAT greatly increased its scale when it acquired Switzerland-based LifeWatch, which also supplies mobile cardiac monitoring services. BEAT has undergone quite a growth spurt. This stock was trading below $10 as recently as early 2016, and today it has reached highs above $50.
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