BioTelemetry (BEAT) — the company formerly known as CardioNet — has watched its shares soar more than 300% for the year so far. The prod for the rally was (mostly) June’s announcement that the company’s cardiac monitoring equipment would be covered by health insurer UnitedHealth Group (UNH) for a period of three years. It’s a big deal, because UnitedHealth Group insures 70 million U.S. residents.
Yes, other companies besides BioTelemetry make heart-monitoring hardware. Now-subsidiary CardioNet, however, is the world’s leading supplier of mobile cardiac outpatient telemetry equipment, and it has become clear in recent months that the organization intends to leverage that position. Shareholders of BEAT are equally excited about leveraging that name with a new revenue-bearing device in the future. Through a partnership forged with IMEC and Holst Centre in early 2013, BioTelemetry/CardioNet will unveil a pair of next-generation cardiac products probably sometime in mid-2014.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.