IRTC

I just saw a video on IRTC (Irhythm Technologies) which has a patch which will replace the current outpatient cardiac monitor, a holter monitor. It looks like the eventual market is at least ten times The business IRTC is currently doing. Revenue growth has been in the range of 60-70% annually in the past couple years and is expected to moderate to about 48% this year.

It looks good but it seem to be a one trick pony. Once it reaches market saturation (a few million in the US) with this product, I’m not sure where they go from there.

Does anybody else know more about this company and its longer term potential?

Dave

Dave,

I did a brief write up on IRTC back in the spring…

http://discussion.fool.com/Message.asp?mid=32681013

I have been planning to do a follow up post as we are now using the device. I still plan to but was wanting a few months of use and interaction with the company before doing so.

MC
No position in IRTC (I think it’s up 50% or so since my write up, I should take my own advice more often I guess… sigh…)

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Dave,

I did a brief write up on IRTC back in the spring…

http://discussion.fool.com/Message.asp?mid=32681013

I have been planning to do a follow up post as we are now using the device. I still plan to but was wanting a few months of use and interaction with the company before doing so.

MC
No position in IRTC (I think it’s up 50% or so since my write up, I should take my own advice more often I guess… sigh…)

Thanks! I would guess you must be a cardiologist based on your MF monicker. I’m an emergency physician.

It looks like IRTC’s product is the best on the market and unlikely to be bested by competitors. It still seems like a niche market but big enough to drive growth for many years. So IRTC is probably a good bet for the next few years. On the other hand, new ompetitors may arise and pricing in health care is difficult to predict. I may pull the trigger with a smaller position.

Dave

Be wary that Medtronic now has a competition device but it is more expensive. Something to keep an eye on at least.

MC

You have the medics’ view; this (former) patient’s view is that the product sounds a great improvement over the holter monitor, but in view of price and figures not interested in the investment: too much work finding out about patents and comparison with MDT product/takeover possibilties.

Although IRTC seems to be doing great at the moment, the patch is just too easy to replicate. I was at an exhibition just a couple weeks ago and GSK were there with a patch of their own. The patch was a sideshow, they weren’t really showing it off too much. They use the patches to monitor patients in their drug studies. So when the patients are at home they can monitor them remotely, 24/7, collect data on their ECG and respiratory rate. I thought that was a great idea and a great use.

IRTC might very well do amazingly. Even without patents and with a product easily replicable, sometimes it just comes down to the best marketing of the best product in terms of usability, comfort and support (they claim to have million of hours of data to give them the best product). And especially with medicine you have to maneuver through all the regulation processes to get your product sellable. However, it just seems to me that it is danger of becoming a commodity.

IRTC’s growth since the IPO is impressive, so impressive that I though maybe I should sell BEAT and buy IRTC. Then I compared them. This chart starts at IRTC’s IPO:

http://softwaretimes.com/pics/irtc-10-11-2017.gif

I’ll stick with the market leader.

Denny Schlesinger

IRTC’s growth since the IPO is impressive, so impressive that I though maybe I should sell BEAT and buy IRTC. Then I compared them. This chart starts at IRTC’s IPO:

http://softwaretimes.com/pics/irtc-10-11-2017.gif

I’ll stick with the market leader.

Denny Schlesinger

Thanks for the additional insight! After reading all the informative comments, I think I’ll hold off on buying IRTC or similar stocks mentioned. I just don’t understand the competitive risks or pricing concerns. Frankly, although I understand the products well, I also understand how government involvement greatly distorts the health care market. It’s just a reality whether you are pro or con. So I’m leery of most health care stocks.

Dave

Thanks for the additional insight! After reading all the informative comments, I think I’ll hold off on buying IRTC or similar stocks mentioned. I just don’t understand the competitive risks or pricing concerns.

The last time I looked at the market by sector, Healthcare was second in growth only to Information Technology. I think it is a mistake to avoid the sector entirely, an affluent and aging society spends a lot of money staying or getting healthy and staying alive. Just don’t buy long shots like biotech, specially those that target rare diseases. In addition to BEAT, for example, for the obesity epidemic I own Novo Nordisk (NVO), the insulin leader. For old age I own (not at this moment) Healthcare Services Group (HCSG) “housekeeping, laundry, linen, facility maintenance, and dietary service to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States.” How sexy is that? For food and animal safety I have Neogen (NEOG). For dental work I’m testing the waters with Align Technology (ALGN). With the exception of Novo Nordisk these companies are not in the sights of lawmakers although they serve the healthcare market is some capacity or other.

I mention them here because these are all fast growers.

The market by sector:

Bloomberg
Sectors
Broad Global Market United States Index

https://www.bloomberg.com/research/sectorandindustry/overvie…

Denny Schlesinger

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