Spruce Point says it’s short iRhythm, sees 40%-70% potential LT downside

Spruce Point says it is short iRhythm (IRTC) Technologies. After conducting a forensic financial review of iRhythm, Spruce Point said it believes that risks related to an ongoing DOJ investigation into product deficiencies that jeopardize lives are underappreciated. The firm said its research, which includes a survey of 100 practicing cardiologists, “supports our case that the company’s key product offering is mature and undifferentiated and that its purported growth prospects rest too heavily on the unpromising asymptomatic market, AI capabilities, and international expansion.” Based on Spruce Point’s evaluation, the firm estimates 40% – 70% potential long-term downside and material market underperformance risk.