iRhythm Technologies, a leading provider of cardiac monitoring devices, said that the Consumer Protection Branch in the Civil Division of the U.S. Department of Justice has issued a subpoena requesting “various documents” regarding its “products and services.”
CEO Quentin Blackford said on a Thursday earnings call with investors that it’s too early to provide specifics about the focus of the request, but spoke in broad terms about compliance at iRhythm.
“Within this industry, these things occur from time to time, we understand that. We've done an incredible amount of work over the course of the last 12, 18 months, with the new leadership team in place, building out incremental, more robust capabilities,” he said. “We put in place a chief risk function, chief risk officer. We have a dedicated compliance function. We've continued to mature the organization.”
Shares of San Francisco-based iRhythm fell 5.2%, or $6.91, to $127.12 in early trading on Friday.
In addition to announcing it received the DOJ subpoena, iRhythm said it posted record new account openings in the first quarter amid a push into primary care.
Cardiologists are helping iRhythm’s move into primary care by recommending that physicians in their network prescribe the company’s products, Blackford said on the earnings call.
Blackford noted that the use of its devices in primary care helps cardiologists “really identify which patients they then need to see further downstream and spend time with.”
He said the company has continued to add large and national accounts.
“The outperformance in the quarter was driven by the strength of Zio XT business fueled by better-than-expected volume and another record quarter of new account openings,” the CEO said.
The company raised its full-year sales growth target range to 17% and 19%. In February, iRhythm forecast revenue to climb 16% to 18% in 2023.