Proving the Business Case for the Internet of Things

Preventice to merge with eCardio Diagnostics to spur mobile health growth

Iain Morris
September 17, 2014
 
Remote monitoring specialists Preventice and eCardio Diagnostics have announced a merger aimed at spurring growth in the market for remote monitoring systems and mobile health applications.

In a statement, the two companies said they would henceforth operate as wholly owned subsidiaries of a newly formed holding company that will be called Preventice.
The financial terms of the tie-up were not disclosed.

Preventice develops software platforms for use in remote monitoring, while eCardio makes a range of devices, including mobile cardiac telemetry and cardiac event monitors.

eCardio said it would benefit from being able to incorporate Preventice’s wireless remote cardiac monitoring system with its technology, while Preventice will gain a national sales force and a monitoring center allowing it to ramp up its commercial activities.

The operating and corporate functions of the new company are to be managed from Cardio’s corporate headquarters in Houston, but clinical research and product development activities will remain at Preventice’s site in Rochester, Minnesota.

eCardio said its two independent diagnostic testing facilities will also continue to monitor patients from Houston and South San Francisco.

Larry Lawson, the founder and chief executive of eCardio, is to serve as chairman and chief executive of the new holding company, while Jon Otterslatter, the co-founder, president and chief executive of Preventice, will become president and global strategy officer.

Meanwhile, John Untereker, eCardio’s chief operating officer, will work as executive vice president and chief operating officer.

“This strategic combination with Preventice will provide physicians with even greater access to products and services in the emerging market of cardiac remote patient care – one of the fastest growing segments in telehealth,” said Lawson. “eCardio has focused on providing physician practices, academic medical centers and hospitals with the value-add tools they need to diagnose patients.”

“In addition to mobile cardiac telemetry monitoring, streamlined reports via customized web portals, and successful EMR integrations, our customers can now look forward to a more robust and cost-effective offering,” he added.

The Mayo Clinic (Rochester, MN, USA) and Merck Global Health Innovation Fund (GHIF) (White House Station, NJ, USA), which have played a key role in funding and developing Preventice, and GHIF is set to become the primary stockholder of the Preventice-eCardio combination.

“Together, Preventice and eCardio create a strong and innovative player in the cardiac patient monitoring market, and provide differentiating opportunities to expand further in remote cardiac patient monitoring,” said Joseph Volpe, the managing director of GHIF.
 
 
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