Irhythm Holdings, Inc. · NASDAQ:IRTC
Irhythm — iRhythm Technologies — 40th Annual J.P. Morgan Healthcare Conference (January 2022)
25 slides from Irhythm's conference presentation, Jan 11, 2022
Slide 1: J.P. Morgan Healthcare Conference
J.P. Morgan Healthcare Conference January 11, 2022
Slide 2: Safe Harbor
Safe Harbor Certain data in this presentation was obtained from various external sources, and neither “iRhythm” or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those “Company” nor its affiliates or representatives has verified such dat
Slide 3: We discover signals early, to improve life.
We discover signals early, to improve life. © 2022 iRhythm Technologies, Inc. Content is confidential and proprietary. 3
Slide 4: Cardiac arrhythmia burden in the U.S. is immense
Cardiac arrhythmia burden in the U.S. is immense PREVALENCE CONSEQUENCES 11M 5x with Increased risk of stroke arrhythmias due to Atrial Fibrillation (AFib) 40% 158,000 Lifetime risk of AF Deaths per year for individuals over 55 associated with AFib FINANCIAL BURDEN 450,000 $46B Hospitalizations per
Slide 5: Real-life patient experience with a Holter monitor
Real-life patient experience: 62-year-old male experiencing palpitations received a Holter monitor. No arrhythmia found. Palpitations continued and was put on an Event monitor. No arrhythmia found. Palpitations continued and was admitted to the hospital not knowing what was wrong with him. Received
Slide 6: The Zio service redefines the way cardiac arrhythmias are diagnosed
The Zio service redefines the way cardiac arrhythmias are diagnosed 1 2 3 PATENTED WEARABLE AI PLATFORM ACTIONABLE AND SCALABLE BIOSENSORS (34-LAYER DEEP NEURAL NET) DIGITAL PLATFORM Single-use monitor that 2nd Generation, FDA-cleared, High-quality digital patients prefer deep-learned report deliver
Slide 7: iRhythm by the numbers
iRhythm by the numbers 4 million patients 1 billion hours of served curated ECG data 35+ peer-reviewed 1,600+ employees publications 7 ©2020 iRhythm Technologies, Inc. Content is Confidential and Proprietary. © 2022 iRhythm Technologies, Inc. Content is confidential and proprietary. 7
Slide 8: iRhythm by the numbers
iRhythm by the numbers $317 - $319 67.3% gross $257 million million in revenue 1 margin 3 in cash 5 29% Revenue (7.7%) Adjusted $24 million CAGR 2 EBITDA margin 3,4 in debt 6 1 2021 Revenue Guidance 4 Non-GAAP measure excluding stock-based compensation expense 2 2018 to 2021 Revenue CAGR assuming 20
Slide 9: Pillars for growth & value creation
Pillars for growth & value creation CORE U.S. INTERNATIONAL ADJACENT MARKET EXPANSION MARKETS 5.6M Ambulatory cardiac 5+M Ambulatory cardiac 10+M Individuals in the U.S. with monitoring tests annually monitoring tests annually high risk of undiagnosed in the U.S. in selected countries arrhythmias FO
Slide 10: $2+B existing U.S. market opportunity with TAM expansion
CORE U.S. MARKE T $2+B existing U.S. market opportunity with TAM expansion MARKET DRIVERS: iRHY THM FOCUS: 8+M • Increasing prevalence of arrhythmias • Continued market share gains for Zio XT Primary care patients with palpitations and cardiac and Zio AT – currently just over 20% disease suspected •
Slide 11: UK and Japan + additional countries to follow
INTE RNATION A L E XPANSION UK and Japan + additional countries to follow UNITE D KINGDOM JAPAN OTHE R COUNTRIE S Early commercialization Pursuing regulatory approval 500,000 1,500,000 Ambulatory cardiac monitoring Ambulatory cardiac monitoring tests annually tests annually ACM Procedures Selected c
Slide 12: International expansion led by positive recent developments in the UK
INTE RNATION A L E XPANSION International expansion led by positive recent developments in the UK Winner of Artificial Intelligence Zio XT received positive in Health and Care Award recommendation from NICE (September 2020) (December 2020) $6.8M in funding to bring Zio to Recommended as an option fo
Slide 13: Silent AFib market opportunity
ADJACE NT MARKE TS Silent AFib market opportunity Moving from reactive to proactive and predictive care Atrial Fibrillation is a leading risk factor for stroke, heart failure and CV mortality— early detection can save lives 10M+ NEAR-TERM GOALS: • Pilot end-to-end care pathway for Silent AFib Indivi
Slide 14: Positive 3-year clinical outcomes published in PLOS One
ADJACE NT MARKE TS Positive 3-year clinical outcomes published in PLOS One CONCLUSIONS Endpoint Active Monitoring Matched Control p-value Active screening for AFib, as part of a prospective, pragmatic, direct-to- AFib detection rate 11.4% 7.7% <0.01 participant, nationwide study, was Primary clinica
Slide 15: Silent AFib market development
ADJACE NT MARKE TS Silent AFib market development ONGOING AFIB SCREENING TRIALS CLINICAL GUIDELINES Opportunistic and systematic screening recommended for certain patients in Europe. Current evidence is SCREEN-AF insufficient to recommend screening in U.S. 15 ©2020 iRhythm Technologies, Inc. Content
Slide 16: Continued investment in innovation
Continued investment in innovation G2 2 ND GENERATION DEEP -LEARNED ZIO MONITOR ECG DETECTION ALGORITHMS 3 RD GENERATION BIOSENSOR Using AI to detect: New form factor that is: Heart beats 60% lighter Beat types 25% smaller Beat rates 30% thinner Breathable & waterproof outer layer Leads to better di
Slide 17: Our algorithm meets or exceeds cardiologist-level detection
Our algorithm meets or exceeds cardiologist-level detection Deep learning V2 Cardiologist-level detection1 Deep learning V1 Average Sensitivity Over a billion hours Deep Learning offers of curated ECG data a step-function improvement, Machine learned delivered by data Expert rule and AI expertise 20
Slide 18: Long-term, Patient-compliant, Non-invasive, Low-cost and Diagnostic-grade AF monitoring
+ AF MONITORING UNMET NEED: ENABLED BY: Long-term, AI-based approach to AF detection Patient-compliant, & burden, leveraging Zio Service Non-invasive, infrastructure, recently submitted Low-cost for 510(k) clearance and Diagnostic-grade AF monitoring service 18 ©2020 iRhythm Technologies, Inc. Conte
Slide 19: Clinically proven: Over 35 peer-reviewed publications
Clinically proven: Over 35 peer-reviewed publications PROVEN AI ALGORITHMS NEW “GOLD STANDARD” iRhythm’s deep neural network Zio XT accurate as an implanted (DNN) exceeded Board-certified pacemaker in detecting AF burden cardiologist ECG sensitivity for and outperforms other external all 12 rhythm c
Slide 20: Reimbursement landscape: three-pronged approach
Reimbursement landscape: three-pronged approach REGIONAL PRICING NATIONAL PRICING COMMERCIAL PRICING (MACS) (CMS) MACs to set CY 2022 Positive developments in CY Pricing strategy focused on Medicare pricing 2022 process despite continued providing evidence of Zio XT’s high regional pricing diagnosti
Slide 21: Creating value through operational efficiency
Creating value through operational efficiency Structure operations Reduce our cost to efficiently and to serve through Achieve sustainable effectively serve millions automation and other profitability of patients means FOUNDATION FOR A SCALABLE, EFFICIENT INFRASTRUCTURE FOUNDATION FOR A SCALABLE, EF
Slide 22: Investment highlights
Investment highlights ✓ iRhythm is redefining the way cardiac arrhythmias are diagnosed ✓ A.I. and biosensor technology platform is highly differentiated and highly enabling ✓ Multiple pillars for TAM expansion, continued growth and value creation ✓ ~20% penetrated in core market with market expansi
Slide 23: Thank you.
Thank you. © 2022 iRhythm Technologies, Inc. Content is confidential and proprietary. 23
Slide 24: Sources
Sources SLIDE SOURCES Cardiac arrhythmia burden Morillo, C., et al. Atrial fibrillation: the current epidemic. Journal of Geriatric Cardiology, 2017; Circulation, 2018;137:1027-38; Rienstra, M., et al. in the U.S. is immense Symptoms and functional status of patients with atrial fibrillation. Circul
Slide 25: Sources (continued)
Sources (continued) SLIDE SOURCES Silent AF Market Opportunity AHA Heart Disease and Stroke Statistics; Nationwide Inpatient Sample; U.S. Census Bureau, Chiang, C. et al Distribution and Risk Profile of Paroxysmal, Persistent, and Permanent Atrial Fibrillation in Routine Clinical Practice. Circ Arrh
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