iRhythm Technologies (NSDQ:IRTC) announced today that president & CEO Mike Coyle resigned effective today due to personal matters.
San Francisco-based iRhythm said in a news release that CFO Douglas Devine will take over as interim CEO while the search for a permanent replacement for Coyle is conducted. The company’s board of directors formed a CEO search committee and retained a search firm to assist in the process.
Coyle agreed to support a well-ordered transition of his responsibilities to Devine and will provide consulting services to the company, centered around reimbursement matters, until a permanent CEO is named. Coyle left Medtronic in December 2020 to take over as CEO of the AI-powered heart monitor developer in January of this year.
Shares of IRTC closed the day up 1.1% at $76.25 per share but, following the news release regarding Coyle’s departure, were down -11% at $67.90 apiece after hours.
iRhythm chairman Abhijit Talwalkaer said in the release that the board thanks Coyle for his leadership and contributions and respects his prioritization of personal matters, wishing him “all the best.”
“This was a difficult decision for me given the many growth opportunities I see for iRhythm and my confidence in the company. However, it was the right one for me personally,” Coyle said in the release. “I am committed to supporting our team as we continue our work to ensure that the pricing for iRhythm’s Zio XT technology reflects the differentiated, measurable benefits it provides. My work with iRhythm over these past months has reinforced my belief that iRhythm’s innovation, financial strength and talented team position the company well to grow and thrive.
“Having also worked closely with Doug since joining the company, I know he will ably guide iRhythm forward as the board completes its search process.”
Devine joined iRhythm as CFO in June 2020, having collected more than 25 years of financial, strategic and operational leadership experience previously, including holding the role of SVP and CFO at GlobalFoundries.
“Doug is an exceptional leader and well respected by the iRhythm team and our broader stakeholders. Given his record here and in prior roles, the Board has high confidence in Doug to lead the Company during this interim period,” Talwalkar said. “Doug is supported by a dedicated team at iRhythm, all of whom are focused on continuing to execute against the Company’s strategic priorities, including driving further scale, efficiencies and momentum in the business.”
The company said the transition to a new CEO with Devine taking the role, for now, does not affect the ongoing pursuit of what it considers “appropriate Medicare pricing” for its Zio XT ambulatory cardiac monitor. Additionally, iRhythm reiterated its second-quarter guidance of approximately 4% sequential growth from the first quarter of 2021.