Let the dust settle or catch the falling knife?

Down from a peak of $270, it’s been a difficult 2021 for iRhythm on reimbursement rate news – or the fee they get paid from Medicare for their service. Indicated open at $89, down $43 from $130, and change. Yowsa.


Market Cap @ $270 = $7.5 Billion
Last week @ $130 = $3.6 Billion
This morning @ $89 = $2.4 Billion

Everyone loves the saying “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” be it with the market in general or with individual stocks – but in practice, everyone seems to do the opposite.

And so here we go. We are watching closely for an entry point.

Company short and sweet summary (highly optimistic we might add):

iRhythm has analyzed the impact the updated Novitas rates would have had on full year 2020 reported revenue and gross margin had those rates been in effect in 2020. The updated Novitas rates would have negatively impacted 2020 Medicare revenue by $41.3 million and would have decreased 2020 total company revenue from $265.2 million to $223.8 million, or a decrease of 15.6%. In addition, 2020 total company gross margin would have decreased from 73.5% to 68.6%. For the year ended December 31, 2020, Medicare represented 27% of iRhythm’s overall revenue, with a small percentage of that 27% attributable to Zio AT and Zio XT for wear of less than 48 hours, which services are priced nationally and not impacted by the updated Novitas rates.


To be continued.

About iRhythm Technologies, Inc.

iRhythm is a leading digital health care company redefining the way cardiac arrhythmias are clinically diagnosed. The company combines wearable biosensor devices worn for up to 14 days and cloud-based data analytics with powerful proprietary algorithms that distill data from millions of heartbeats into clinically actionable information. The company believes improvements in arrhythmia detection and characterization have the potential to change clinical management of patients.

Unrelated, Sort Of: My-Cam™ and My-Cardia™ the Ultimate ‘Any-Doctor-Anywhere’ Telehealth Monitoring Application.