), a leader in non-invasive monitoring technology for patient
care, recently reported that El Paso Children's Hospital, a
prominent children's hospital in the western part of Texas, had
adopted Masimo SET pulse oximetry and sensor
The adoption of Masimo technology by El Paso Children's
Hospital is in line with its commitment to quality care and
favorable outcomes. In addition, the hospital retains the option
to utilize Masimo rainbow Pulse Co-Oximetry product.
Masimo is a market leader in the pulse oximetry monitoring
equipment industry. The company's prospects are encouraging,
given the sizeable global market opportunity, adoption of pulse
oximetry in non-critical areas of the hospital and growing
barriers to entry due to additional non-invasive parameters.
While Masimo's patented SET offering remains its mainstay, the
rainbow measurements represent another growth driver. However,
the company's reliance on third-party providers like OEMs for a
part of its business raises concern and the royalty stream is no
longer as attractive as before.
In May 2013,
) won the approval of the U.S. Food and Drug Administration (FDA)
for its motion-tolerant Nellcor pulse oximetry devices. The
system can effectively detect and diagnose acute and potentially
fatal breathing difficulties at an early stage, thereby allowing
faster treatment and elimination of respiratory
The Nellcor Bedside SpO2 Patient Monitoring System, Bedside
Respiratory Patient Monitoring System and N-600x Pulse Oximetry
Monitoring System are the devices that have been cleared by the
FDA. The systems continuously monitor SpO2 as well as the pulse
rate for adult, neonatal and pediatric patients.
The stock carries a Zacks Rank #4 (Sell). We are more positive
Heartware International Inc.
Intuitive Surgical, Inc.
) each of which carry a Zacks Rank #2 (Buy) and are expected to
COVIDIEN PLC (COV): Free Stock Analysis
HEARTWARE INTL (HTWR): Free Stock Analysis
INTUITIVE SURG (ISRG): Free Stock Analysis
MASIMO CORP (MASI): Free Stock Analysis
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