CardioNet posts Q2 gains, appoints new exec chairman

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CardioNet, a wireless medical technology company with a focus on cardiac arrhythmias, has reported a 68 percent revenue increase of $29.3 million for the second quarter of 2008, which ended June 30, compared to a loss in the same period last year.

Second quarter net income was $1.63 million, compared to a net loss of $1.1 million in the year-ago quarter, according to the Conshohocken, Pa.-based CardioNet.

The company said it secured nine new direct payor contracts in the second quarter, representing about 1 million additional patients, and brought the total number of covered lives to about 177 million, covered by 181 commercial contracts and Medicare.

Earlier this month, CardioNet appointed Randy Thurman, former chairman and CEO of Viasys Healthcare (acquired by Cardinal Health for $1.5 billion in June 2007), as executive chairman to replace founder Jim Sweeney.

“Annualizing our Q2 revenue suggests that we have achieved less than 6 percent penetration, underscoring the significant growth opportunity going forward in our core business. We believe our wireless medicine platform also can be leveraged in the future for other new applications and markets and remain excited about the potential for this innovative and scalable technology,” said Arie Cohen, president and CEO.