iRhythm secures $17 million from VCs for its arrhythmia monitor

San Francisco-based iRhythm closed a $17 million Series E funding round, led by VC Novo A/S, to grow its arrhythmia monitoring solution, which has already been used by more than 250,000 patients and 800 institutions since its 2011 launch.

ZIO patch--Courtesy iRhythm

"Our ZIO Service is setting a new standard for long-term continuous cardiac monitoring of patients with suspected arrhythmia. We believe our strong and growing success with physicians and payers underscores the ZIO Service's compelling value proposition of using novel technology to improve diagnosis of cardiac arrhythmias, while also increasing the efficiency of healthcare delivery," iRhythm CEO Kevin King said in a statement.

The wearable ZIO Patch won plaudits from NIH Director Francis Collins after a study funded by the federal agency compared it favorably to the bulkier standard Holter Monitor. "Because patients could tolerate wearing the adhesive patch monitor for a relatively long period of time--about 11 days on average--the new device was ultimately able to detect a significantly greater number of arrhythmia events (96) than was the Holter (61)," he wrote in a Jan. 16 blog post, adding, "You can wear this water-resistant patch for up to two weeks while doing almost anything--eating, sleeping, walking, running, bicycling, even taking a shower!"

Shortly after the study was published in The American Journal of Medicine insurer Aetna began covering the monitoring service. iRhythm plans to use the proceeds to fund more studies into its product, which costs about $500, according to the San Francisco Business Times.

The company also announced that Novo A/S principal, Tiba Aynechi, has joined the its board of directors. The VC's portfolio is mostly focused on biopharmaceuticals, but the financier participated in one of 2013's largest med tech VC investments with several others by contributing to the $48 million financing round of spinal cord stimulation pain-management implant company Nevro.

Series D leader Norwest Venture Partners also participated in the latest funding round.

Arrhythmia monitoring seems to be winning funding in what has become a tough VC market for med tech firms. Last month InfoBionic raised $17 million in Series B financing to develop its cloud-based monitoring system.

- read the release
- get the San Francisco Business Times article

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