Hillrom (NYSE:HRC) says closing conditions have not been met when it comes to the company’s previously planned $375 million acquisition of Bardy Diagnostics and its Carnation Ambulatory Monitor, or CAM patch.
In response, BardyDx has sued Hillrom in the Delaware Court of Chancery, Hillrom said in a March 1 news release.
The move comes more than a month after the regional Medicare administrative contractor Novitas Solutions published significant rate cuts for external EKG monitoring — a setback for a technology that could prove an improvement over traditional Holter monitors.
Hillrom said in its news release: “As a result of the unexpected Novitas reimbursement rate reduction, Hillrom has asserted that a ‘company material adverse effect’ has occurred, and therefore the closing conditions have not been satisfied.”
Another major company in the external EKG monitoring space — iRhythm Technologies (NASDAQ: IRTC) — has been meeting with Novitas officials. “We believe the evidence we presented was compelling but can provide no assurances as to if and when Novitas will change the proposed rates,” iRhythm CEO Mike Coyle said during a recent earnings call.
Boston Scientific (NYSE:BSX) recently closed on its acquisition of Preventice Solutions and its remote monitoring services for patients with cardiac arrhythmias.