Fitbit Shortcomings in Healthcare Exploited by Better Device Maker Biotricity

NEW YORK, NY / ACCESSWIRE / March 9, 2016 / Leveraging a fitness trend that started in the late 1980s, Fitbit Inc. (NYSE: FIT), maker of wristband devices to track exercise with an eye toward personal activities like walking, climbing, caloric burn and sleep quality, has been top in its category of wearable technology for individual health. After an IPO in June 2015, already with several products commercialized, Fitbit premiered in the public market with a first-day trading stock price that closed more than 50% above its original price.

In the months that followed, Fitbit performed exceptionally well. Sales from the year ended December 31, 2015 grew 150% over the prior time period, to $1.8 billion. Adoption of products was widespread. People between the ages of 25 and 45 years yearned to monitor their personal progress to defined fitness goals.

Much of this allure came from investors’ view of Fitbit as the perfect device to convey to physicians their ongoing preventative care efforts, through indications of potential heart trouble. Expectation of Fitbit’s success in medical monitoring brought shares to over $50, recognizing the large market for cardiovascular conditions and how possibly avoided, dropping healthcare costs to a reasonable level.

Although Fitbit may see future revenue and stock price gains given a global demand in health and fitness, recent events to harness heart disease did not pan out. Investors, realizing Fitbit’s wristband metrics were inadequate to correctly gauge such a dangerous and tenuous illness, fled from the stock in droves. Shares fell from a high of $51.90 on August 5th, 2015, to its current price of around $13, a market capitalization cut of over $2 billion. Price targets and revenue estimates fell. Class action lawsuits began to pile up, citing inaccurate heart tracking leading to hazardous health conditions.

Demand for more sophisticated heart rate measurements, and other vital medical metrics, has been supplied by Biotricity Inc. (OTCQB: BTCY), a company whose medical remote monitoring systems follow and record heart events in real-time, easily and effectively used by doctors and hospitals. As a global killer, cardiovascular disease affects 30 million people in the US alone. Onset of diabetes and rise in obesity, two demographic offenses, make this worse.

Biotricity developed a new type of remote heart rate monitor that stands technologically far above what Fitbit could produce; its design is supported by years of biomedical and wireless engineering talent. Its scientific and advisory board is world-class. Biotricity makes a new generation device for mobile cardiac telemetry, where a cardiac patient is freed from the confines of a hospital or clinic to monitor for dangerous arrhythmias, heart beats that can kill if not detected.

Much progress has been made by Biotricity in the past year: Software and monitor are FDA-approved with official launch into commercial markets this summer. Partnerships have been formed to facilitate US entrance with almost 500 embedded customers. Reimbursement is set, under a strategic solution where Biotricity creates its monitoring devices around current reimbursement codes.

Not stopping there, Biotricity plans a ‘life-style’ device to incorporate telemetry with more human interaction, via social networking, to affect improvement in the patient non-compliance multi-billion dollar market. This blends nicely with Biotricity’s vision of participating in preventative care.

Marketing of Biotricity’s devices and software will commence next year, targeting thousands of users – doctors and hospitals seeking better ways to monitor patients toward optimal health. Unlike competitors, Biotricity will seek partnerships with remote heart rate monitor providers to produce revenue, expected as early as third quarter this year.

Fitbit trades at a high valuation; albeit lowered significantly in recent months because its promise of medical monitoring is not deliverable. Biotricity will fill that burgeoning market need and its stock should rise accordingly as client base can be viewed as essentially equal – individuals who care about their health.

CONTACT:

Sharon di Stefano
smallcapforecasting@gmail.com

SOURCE: Small Cap Forecasting, Inc.

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