iRhythm Holdings, Inc. Common Stock Wells Fargo 21st Annual Healthcare Conference

Thank you, Nathan. Great to be here.

Yeah. Thank you. Something we are very excited about, added to the list of things that we are excited about. I would say simply put, the deal strategy is really combining great technology and differentiated product features with our commercial engine and clinical service delivery capabilities. If I was trying to sum it up in a few words, it would be that. In terms of their product and technology, we do see it differentiated and complementary to Zio AT and ultimately Zio MCT, which we will likely talk about. Some of the capabilities that we see resonating in the market, four-in-one capabilities. So, with a single product and platform able to serve four different modalities seamlessly for patients. Getting out to 30 days of wear, particularly in the MCT segment, where we really see their technology differentiated.

As you know, Zio AT does not go out to 30 days today, and we do see that as important to certain customers and patients in the market. Some other features as well that are unique, live look-in capabilities. So at any point in time during the wear period, a clinician can look into the patient's record, see the raw ECG, and that is of value for certain customers in the market. A lot of things that we're excited about, see very complementary to both AT and MCT, and we're excited to put the product in the back.

Yeah. So we said Zio AT addresses roughly 50% of the MCT segment. We do believe with Zio MCT coming, that opens up a bit more of the market, call it another 20% of that market or so. There's still a good part of the market that we don't believe we can address right away with both Zio AT and Zio MCT. Bringing Vital into the portfolio allows us to fully access that market, and it's really around those kind of features that I pointed to. There's absolutely customers in the market that want 30 days of monitoring, and that is a key feature of the Vital platform, that it gives us those capabilities as soon as we add it to the bag. That's a big one. Then there are, again, customers that expect downgrade ability capabilities in the platform. We don't offer that with AT today.

Some of the other kind of tangential features as well. Certainly the live look and the multi-vitals, those are becoming more and more expected and desired by clinicians in the market. With Vital in the bag, we believe we can meet the full spectrum of the market. Unlike long-term continuous monitoring with our Zio monitor product, the MCT segment is fragment, and we're seeing that very clearly. There's no one size fits all, and so having multiple options in the bag to offer our customers, we believe is a good strategy.

Yeah. We have been gaining share nicely in that MCT segment with Zio AT. We had a great year last year with Zio AT, and in particular, saw that combined with Zio monitor, which is the workhorse tool for hospitals and accounts. Combining those together in a single platform, there is a lot of operational benefits for customers. That is an important piece of it. Continuing to innovate within that MCT segment, certainly. We are committed to Zio MCT, looking forward to getting that cleared first half of next year, and then bringing the Vital platform in. We believe that, combined with everything we are doing on the commercial side, clinical evidence, market access strategies, EHR integration, that is a big component. Putting that all together, we are confident we are going to be able to continue to grow our share in the MCT segment. We are at over 70% share on the long-term continuous monitoring side.

That is the biggest segment of the market. We believe we are in a kind of differentiated position to ultimately win share in the MCT segment. We need the right products in the bag to do that, and we believe with Zio AT, then ultimately Zio MCT plus Vital gives us a really good portfolio to go grow our share in that market.

Yeah. We do believe they're complementary. Zio MCT, it's on the same platform as Zio monitor, as you know, and there's benefits both on our side as well as to a customer. In situations where customers desire simplicity and patient experience where a patient can put a device on, they don't have to do anything through that wear period, 14 or 21 days, there's a lot of value there. That's how we've been going to market with Zio AT. That's how we've been winning in the market. But again, there are clearly customers, clinicians, and patients that want to see 30 days of monitoring. We don't offer that today with AT and get a bit closer with MCT out to 21 days, but there's still that gap and then some of the other features that I was mentioning as well. Again, believe they're complementary. We're committed to Zio MCT and keeping that in the bag with Vital.

Certainly, in the near term, as we think how the product and technology evolves, platform evolves over 5 year plus period, we'll see what that looks like. But certainly in the near to medium term, we see both as complementary.