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Connecting the Dots on Recent ECG Monitoring M&A Spree

Image by freshidea - Adobe Stock ECG M&A activity
Large medical device players are showing strong interest in the ambulatory ECG monitoring space. Here's a closer look at this industry trend.

Two back-to-back acquisitions in the same sector can be called a coincidence, but three is a trend. Today we're taking a closer look at three recent acquisition announcements made in the span of 35 days, all focused on the ambulatory ECG monitoring market.

Most recently, Boston Scientific said it would acquire Minneapolis, MN-based Preventice Solutions, a private company it already held about a 22% stake in, for $925 million plus the potential of an additional $300 million commercial milestone payment. The announcement came on the heels of Hillrom announcing its planned acquisition of Seattle, WA-based Bardy Diagnostics (BardyDx) for $375 million. These two deals, both announced last week, followed Royal Philips' mid-December news of a $2.8 billion to acquire Malvern, PA-based BioTelemetry.

According to a report published in August 2020 by Global Market Insights, the market valuation of cardiac arrhythmia monitoring devices will cross $9 billion by 2026. The report said new product launches with enhanced detection and portability features will spur the market growth. It's also worth noting that COVID-19 has driven a major growth spurt in all things remote care monitoring, which is likely a factor in the recent M&A spree in ambulatory ECG monitoring.

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The Boston Scientific-Preventice deal is expected to provide Boston Scientific with a foothold in the high-growth ambulatory electrocardiography space, which complements the company's recent entrance into the implantable cardiac monitor market. The Preventice portfolio includes the BodyGuardian family of remote, wearable cardiac monitors for adult and pediatric patients. The monitors use a fully integrated, cloud-based platform supported by an independent diagnostic testing facility, where clinical technicians and artificial intelligence (AI) algorithms provide insights that may lead to improved clinical diagnoses and outcomes. Preventice's integration of AI and human expertise is designed to enhance physician efficiency and experience.

The Hillrom-BardyDx deal provides Hillrom with a highly strategic and differentiated diagnostic cardiology platform aligned with our vision of Advancing Connected Care, as well as an attractive recurring, high-growth revenue stream and gross margin profile, according to Hillrom President and CEO John Groetelaars. BardyDx has developed the Carnation Ambulatory Monitor (CAM) patch, which is designed to promote patient compliance, streamline clinical workflow, and yield clinically actionable data in a report. The CAM patch was one of 16 COVID-19 innovations spotlighted by MD+DI in a special report in May of 2020. The company received CE mark for a 14-day version of the patch before MD+DI’s report. The patch won a nod from FDA in 2019 and a Health Canada clearance in February 2020.

Philips and BioTelemetry make a strong pair also, as BioTelemetry fits nicely with Philips' cardiac care portfolio. BioTelemetry’s offering includes wearable heart monitors that detect and transmit abnormal heart rhythms wirelessly; and AI-based data analytics and services. With more than 30,000 unique referring physicians per month, BioTelemetry provides services for over one million patients per year, the company noted. BioTelemetry also has a clinical research business that provides testing services for clinical trials.

TAGS: Business
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