Dive Brief:
- VitalConnect raised $100 million to accelerate commercialization of its ambulatory cardiac monitoring device, the company said Wednesday.
- The company sells a disposable patch that records a patient’s heart rhythm to detect arrhythmias. The device, Vitalpatch, competes with patches from companies including iRhythm Technologies.
- Unlike rival devices such as iRhythm’s Zio, VitalConnect’s product provides real-time monitoring of vital signs including respiratory rate. Vitalpatch monitors for 21 different cardiac arrhythmias using artificial intelligence.
Dive Insight:
VitalConnect received 510(k) clearance for the biosensor in 2019 and launched the device the next year. The patch, which sticks to the skin, has technology to capture ECG data and transmit the information to the cloud. After up to seven days, the patient removes the patch and, if a longer monitoring period is needed, applies a new device.
The Band-Aid-like design allows physicians to monitor patients for cardiac arrhythmias without making individuals wear traditional Holter devices, bulky technologies that feature multiple leads that attach to the skin.
iRhythm has shown the popularity of smaller, more convenient heart monitors, generating sales of $591.8 million last year. Bardy Diagnostics competes with iRhythm. Hillrom bought BardyDx for $375 million in 2021, and then Baxter acquired Hillrom for $10.5 billion shortly after the BardyDx deal closed.
Vitalpatch needs replacing more frequently than the rival devices, which are worn for up to 14 days, but monitors for more than cardiac arrhythmias. The VitalConnect device also monitors heart rate, heart rate variability, respiratory rate, activity and other vital signs and biometric parameters. The company is developing an inpatient remote patient monitoring offering in collaboration with healthcare facilities.
VitalConnect raised $39 million to expand its commercial team and scale its operations in 2022. The next year, the medtech company raised another $30 million to build on progress including the tripling of sales from 2021 to 2022.
The latest financing is a mix of equity and debt capital. New investor Ally Bridge Group led the equity round with the support of existing VitalConnect backers including EW Healthcare Partners, MVM and Revelation Partners. Trinity Capital provided the debt financing.
