CardioDynamics Streamlines ICG Business

CardioDynamics, a San Diego-based company that uses impedance cardiography (ICG) technology to monitor the heart’s ability to deliver blood to the body, has decided to sell its Vermed subsidiary for $8 million.

The move allows CardioDynamics to focus exclusively on its ICG business and BioZ product line. BioZ diagnostics, modules and monitors measure blood as it enters and leaves the heart, and look at changes in impedance to calculate bioz.gifhemodynamic parameters. It’s a non-invasive alternative to pulmonary artery catheterization, a costly and time-consuming procedure.

In a press release, CardioDynamics CEO Michael Perry said the cash infusion from selling Vermed will go toward “continued expansion of our sales and clinical application specialist team, further investment in clinical trial research, and investment in core technology improvement.” Long-term, the company is looking to establish its technology as a standard of care for cardiovascular disease. “Our objective through these investments is to establish ICG in the treatment guidelines for heart failure and hypertension over the next five years,” said Perry.

Vermed, which supplies disposable electrodes and related supplies for electrocardiograph, will continue to operate under its current management team — with its former owner as its first customer. At closing, the two companies will enter a five-year agreement whereby Vermed will supply the ICG sensors for CardioDynamics’ BioZ products. And going forward, the two will work together to make technological improvements to current sensors.

“Within the next three to five years, we believe ICG sensors will likely comprise over 50% of revenue for the ICG business,” said Perry, noting, “it is essential that we continue to enhance our proprietary position and drive cost efficiencies in this important recurring revenue stream.”

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