In the meantime, while still seeking more favorable reimbursement rates longer-term, it is taking the following steps, Chairman & CEO Randy Thurman said :
- Reducing its annual (expense) run rate by $23 million, $8 million of which has already been achieved, and taking other measures to preserve cash such as better recievables management.
- Continuing to expand marketing for its sleep disorder monitoring service and preparing for the introduction of the next generation of its main product - Mobile Cardiac Outpatient Telemetry (MCOT)
- Hiring investment bank Lazard Ltd to help it explore strategic options, which is at least an indication the company will consider a sale or other forms of financing. (Lazard isn't cheap.)
CardioNet was one of the few successful IPOs of 2008 and traded as high as $29.50 before starting a downward slide this past summer. It closed today at $6.00.
They probably should have stayed private so reimbursing agencies couldn't tell how high their margins were.
(Edited to show today's closing price)