Shares of iRhythm Technologies (IRTC -8.69%), a company that makes wearable heart monitors, are posting big gains today. Investors fired up about the appointment of Quentin Blackford as CEO pushed the stock 33.8% higher as of 12:25 p.m. EDT on Monday.
The stock crashed earlier this year when the company failed to secure a favorable reimbursement rate from Medicare for the Zio XT, its heart arrhythmia detection device for high-risk patients. Despite the setback, the company expects total revenue to rise about 22% year over year to $323 million in 2021.
Blackford previously served as the chief operating officer of DexCom, a highly successful manufacturer of wearable blood glucose monitors that had reimbursement issues of its own. DexCom's operations turned strongly profitable last year, and it looks as if investors expect him to do the same for iRhythm in the years ahead.
Sales of iRhythm's devices are growing, but they would grow a lot faster with a national pricing determination from the Centers for Medicare and Medicaid Services. It's hoped that Blackford can make more progress on this front than his predecessor once he officially takes the helm on Oct. 4.
Before a Medicare contractor slashed the reimbursement price for the Zio XT, iRhythm's market cap had risen past $7 billion. This company is still the only manufacturer of simple, wearable solutions for detecting life-threatening heart arrhythmias. It's probably just a matter of time before the stock reaches a new peak.