The maker of the Zio wearable heart monitor, iRhythm Technologies, upsized its initial public offering, raising $107 million compared to the $86 million it originally sought to gear up for the commercial and clinical reach of its device.
Shares of the San Francisco-based company begin trading today on the NASDAQ under the ticker “IRTC”, the company said. Bookrunners for the offering are JP Morgan and Morgan Stanley. Canaccord Genuity and BTIG are acting as co-managers.
The offering is expected to close on October 25.
In 2009 the company won FDA 510(k) clearance for the wearable Zio device, which records heartbeat data over a 14-day period. In a September filing, iRhythm said the device has been used by about half million patients in collecting more than 100 million hours of data, which the company considers one of the largest repositories of ambulatory ECG patient data in the world.
In the upsized IPO, iRhythm was offering 6.3 million shares at $17, above the $13 to $15 range.
“This data provides us with a competitive advantage by informing our proprietary machine-learned algorithms, which may enable operating efficiencies, gross margin improvement and business scalability,” the company told the SEC in a September filing. “We believe the Zio service is well-aligned with the goals of the U.S. healthcare system: improving population health, enhancing the patient experience and reducing per-capita cost.”
The company believes the market for Zio could be as much as $1.4 billion. As of June 30, iRhythm said it had reimbursement contracts in the U.S. with government and private health insurers covering about 200 million of an estimated 290 million patients whose insurance covers the device.