Healthcare Industry News: telemedicine
News Release - March 26, 2007
CardioNet Completes $110 Million in Private FinancingCardioNet's Equity Bridge Financing is One of the Largest in the Medical Technology Sector Since January 2000
NEW ORLEANS--(HSMN NewsFeed)--San Diego-based CardioNet, Inc., the leading provider of wireless mobile cardiac outpatient monitoring solutions, announced today that it has closed on $110 million in private financing, making it one of the largest private placements of equity bridge financing in the medical technology sector since January 2000, according to James M. Sweeney, CardioNet's Chairman and CEO. CitiGroup Global Markets, Inc. served as the lead placement agent for this financing. Sun Trust Robinson Humphrey served as co-placement agent.
CardioNet has raised close to $200 million in private debt and equity over the past seven years to develop its proprietary technology platform focused on wireless solutions to a broad array of health-related diseases.
Sweeney said, "This significant round of funding clearly demonstrates the strong market support that exists for the proprietary CardioNet technology, the highly competitive business model of the company and the future of wireless telemedicine. We expect to be able to leverage our solid financial position to further solidify our leading position in the provision of our services to physicians and their patients nationwide."
This month, the respected Journal of Cardiovascular Electrophysiology(1) published a first-of-its-kind peer review study that found CardioNet's Mobile Cardiac Outpatient Telemetry (MCOT) technology nearly three times more effective at detecting and diagnosing clinically significant arrhythmias compared to existing mobile cardiac monitoring devices typically prescribed by physicians. Cardiac arrhythmia is one of the most common, yet potentially dangerous, heart conditions affecting more than four million Americans, accounting for more than 780,000 hospitalizations and 500,000 deaths each year, according to the American Heart Association.
CardioNet is a leading provider of ambulatory, wireless, real-time arrhythmia monitoring, having provided services to more than 70,000 patients nationwide. The company has invested more than $84 million and seven years developing its medical devices and 24-hour monitoring service center. Of that amount, it has invested over $40 million developing its proprietary integrated patient-monitoring platform that incorporates a wireless data transmission network, internally developed software, and FDA-cleared algorithms. CardioNet was recently named one of "50 medical companies to watch" by Medical Device and Diagnostic Industry magazine.
On March 13, 2007, CardioNet also announced the completion of its acquisition of PDSHeart, Inc., a leading provider of cardiac monitoring services. It provides physician-prescribed remote and ambulatory care monitoring of asymptomatic and symptomatic arrhythmia detection via landline, cellular telephone and the Internet. PDSHeart's WebHolter® is the industry's first Web-based digital Holter monitoring system. PDSHeart provides monitoring services to approximately 150,000 patients in 49 U.S. states. Terms of the acquisition were not disclosed.
PDSHeart operates as a subsidiary of CardioNet, with its corporate offices in West Palm Beach, Florida. CardioNet's corporate headquarters is located in San Diego, California. The combined company has monitoring centers in Pennsylvania, Minnesota, Florida and Georgia. For more information, visit www.cardionet.com or www.pdsheart.com.
(1) Eric Prystowsky, Chief Editor of Journal of Cardiovascular Electrophysiology, also sits on the CardioNet board of Directors and Medical advisory board. Dr. Prystowsky recused himself from the entire process associated with the Journal's review of this study. A guest editor was chosen who chose the reviewers and oversaw the entire review process, which was blinded to Dr. Prystowsky.
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