iRhythm Technologies (NSDQ:IRTC) said yesterday that it inked a deal worth nearly $13 million with Alphabet (NSDQ:GOOGL) life sciences unit Verily to develop AI-based screening, diagnosis and management technology for atrial fibrillation and said it’s readying a stock offering worth $100 million in part to back the collaboration.
The deal to integrate Verily’s data analytics into iRhythm’s AI-based arrhythmia diagnosis technology calls for an up-front payment to Verily of $5 million, plus nearly $6.8 million in development and regulatory milestones, San Francisco-based iRhythm said.
“We are excited to partner with iRhythm, a pioneer in ambulatory cardiac monitoring, to find innovative ways to deliver more efficient care to patients with atrial fibrillation,” Verily medical & science chief Dr. Jessica Mega said in prepared remarks. “With the high prevalence of cardiovascular-related health issues, we have an opportunity to not only improve how we diagnose, manage and monitor conditions like atrial fibrillation, but also develop patient-centric solutions that could ultimately prevent serious cardiac events.”
“iRhythm and Verily have a shared mission to create a better standard of care for cardiac patients – making heart health data more actionable so patients can live longer, healthier lives,” added iRhythm president & CEO Kevin King. “We are pleased to partner with one of the world’s most reputable technology companies to better serve the millions of people living with AF today. Verily’s strong patient-centric disease management platform and advanced hardware capabilities will prove critical in providing patients and providers with the tools needed to increase the efficiency of heart healthcare.”
In a separate announcement iRhythm said it expects to float about 1.4 million shares to reach the $100 million mark, not including a 30-day underwriters option worth $15 million, based on their Sept. 3 closing price of $74.07. The net proceeds, estimated at $93.3 million (or $107.35 million if the over-allotment is exercised in full), are earmarked for “growth initiatives” including $30 million to $35 million for the Verily program.
J.P. Morgan and Morgan Stanley are joint book-runners for the offering.
IRTC shares were down -3.4% at $71.97 in early-morning trading.
Date: September 11, 2019