Irhythm Holdings, Inc. · NASDAQ:IRTC
Irhythm — iRhythm Technologies — J.P. Morgan Healthcare Conference January 2019
19 slides from Irhythm's conference presentation, Jan 9, 2019
Slide 1: J.P. Morgan Healthcare Conference January 2019
J.P. Morgan Healthcare Conference January 2019
Slide 2: Certain data in this presentation was obtained from various external sources, and neither “iRhythm”
Certain data in this presentation was obtained from various external sources, and neither “iRhythm” or the “Company” nor its affiliates or representatives has verified such data with independent sources. Accordingly, neither the Company nor any of its affiliates, advisers or representatives makes an
Slide 3: Proprietary Data Analytics, Patented Wearable Biosensor, Clinically Proven Zio Service
Proprietary Data Analytics Patented Wearable Biosensor Clinically-Actionable Digital Report to Inform Diagnosis and Management Clinically Proven and Highly Differentiated Zio Service
Slide 4: Attractive Large Market with Significant TAM Expansion Opportunity
Attractive Large Market with Significant TAM Expansion Opportunity … $2B+ Symptomatic Initial Dx (4.5M) High acuity (Zio AT) Low acuity (Zio XT) (Annual U.S. Patients in Millions) Detection Diagnosis Management High Risk Asymptomatic (10+ M) Risk factors: stroke, age, hypertension, heart failure, di
Slide 5: 50% of diagnosed symptomatic arrhythmias occurred beyond hours of monitoring
50% of diagnosed symptomatic arrhythmias occurred beyond 48 hours of monitoring n = 16,142 patients Time Course of Symptomatic Arrhythmia Diagnosis for Zio® Patients % of all patients with symptomatic arrhythmia detected Longer Continuous Monitoring Leads to Better Diagnosis Legacy Holter Monitoring
Slide 6: Zio Proven Superior in Head-to-Head Comparisons
Zio Proven Superior in Head-to-Head Comparisons % of Patients Diagnosed with Arrhythmia n = 146 patients with both Holter and Zio® patch 66% 42% Source: Barrett, et. al., Comparison of 24-hour Holter Monitoring with 14-Day Novel Adhesive Patch Electrocardiographic Monitoring, Am J Medicine, 2014 72%
Slide 7: Zio Performance On Par with Gold Standard Pacemaker
Zio Performance On Par with Gold Standard Pacemaker Zio XT AF burden vs. PPM AF burden Nuubo Vest AF burden vs. PPM AF burden “R” Test AF burden vs. PPM AF burden CAM AF burden vs. PPM AF burden Fit Plots for AF Burden Recorded by Pacemaker vs. External Cardiac Monitor Source: Eysenck, et. al., post
Slide 8: Complete Diagnosis Requires Full Characterization of Multiple Arrhythmias
Complete Diagnosis Requires Full Characterization of Multiple Arrhythmias Incidence of Atrial Fibrillation Diagnosed With Other Critical Arrhythmias Incidence of First Critical Arrhythmias Detected Beyond 7-Days Source: iRhythm database of ~500,000 consecutive Zio records
Slide 9: High Yield / Low Cost Appeals to Value-Sensitive Payors
High Yield / Low Cost Appeals to Value-Sensitive Payors Source: Commissioned analysis by Decision Drivers Analytics, which used 2015 Medicare fee schedules to estimate Medicare payment and diagnostic yields derived from Giada et al. (2007), Zio® Service Data, Rothman et al. (2007); Tsang et al. (201
Slide 10: TAM Expansion: Access to Previously Untapped High Acuity Segment
TAM Expansion … Access to Previously Untapped High Acuity Segment Drives Greater Zio Adoption Early ZioAT Adoption Experience Benefits of single Zio platform unlock full potential of accounts Account dissatisfaction with current MCT suppliers 60% 40% 16% 70% 14% Zio AT 12/16 12/17 12/18 Illustrative
Slide 11: TAM Expansion: Zio's True AF Burden as a Clinical Tool
TAM Expansion … Zio’s True AF Burden as a Clinical Tool for Management of AF Patients KP-RHYTHM Study Published in JAMA Cardiology True AF burden measured by Zio in ~2000 paroxysmal AF patients not taking anticoagulation medication 3x increase in stroke risk in paroxysmal AF patients with True AF bu
Slide 12: TAM Expansion: Targeted Detection of Silent AF in Asymptomatic Patients
TAM Expansion …Targeted Detection of Silent AF in Asymptomatic Patients Study AF Clinical Cardiology, May 2015 11% New AT / AF diagnosed mSToPS JAMA, July 2018 6.7% New AF diagnosed at 1 year MESA Journal of Electrocardiology, November 2018 4% New Atrial Flutter / AF diagnosed mSToPS New Diagnosis o
Slide 13: Traditional Approaches to Cardiac Rhythm Classification Have Limitations
Traditional Approaches to Cardiac Rhythm Classification Have Limitations Challenges in Detecting Irregular Heart Rhythms Traditional approaches learn from limited or intermittent data Computerized arrhythmia interpretation error rates approach 50%1 Traditionally rely on “expert” technicians for corr
Slide 14: iRhythm's deep neural network exceeded cardiologist ECG interpretation
iRhythm’s deep neural network (DNN) exceeded cardiologist ECG interpretation for all 12 rhythm classes DNN optimization built on a proprietary database of 10+ years and >400 million hours of curated data Improves the accuracy and scalability of ECG analysis, reducing the rate of misinterpretations a
Slide 15: Superior Service and Workflow Underlie the Zio Offering
Superior Service and Workflow Underlie the Zio Offering Actionable Report Connected Information System Timely Service Delivery Electronic health records integration Bi-directional movement of ordering, eligibility, clinical results, inventory, and billing information Median Delivery Time Wear time 1
Slide 16: The Velocity of Account Penetration Increasing Over Time
The Velocity of Account Penetration Increasing Over Time Average Time for New Accounts to Reach 50+ Zio Rx/Month Months 2013 2014 2015 2016 2017 2018 25+ clinical publications demonstrate superiority of Zio and drive higher brand awareness Reimbursement hurdles largely removed Increased size of sale
Slide 17: Sales Expansion Fueling Growth
Sales Expansion Fueling Growth Rapid Expansion of Sales Headcount to Continue into 2019 Number of Sales Representatives Rep Productivity Continues to Increase Average Annual Sales/Rep by Tenure $M Source: iRhythm internal data and analysis
Slide 18: Track Record of Sustained High Financial Performance
Track Record of Sustained High Financial Performance Revenue Net income/Loss * As of September 2018 2014 2015 2016 2017 2018 est.* 51% 59% 67% 72% 73.5 -74.5% GM% 60% CAGR Revenue $M
Slide 19: iRhythm
Rhythm irhythmtech.com Rhythn
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