), a leader in non-invasive monitoring technology, recently
revealed that the East Tennessee Children???s Hospital has
installed Masimo Patient SafetyNet.
This installation represents East Tennessee Children???s move
to standardize with Masimo SET Measure-Through-Motion and Low
Perfusion pulse oximetry and rainbow Pulse CO-Oximetry.????
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 in
hospital care. However, the company???s reliance on third-party
providers like OEMs for a part of its business and customer
concentration raises concern. Additionally, we remain concerned
about Masimo???s reliance on group purchasing organizations for
the sale of its pulse oximetry products to hospitals in the
Shipments have been growing at a steady rate fueled by new
contracts. However, the renewal of the royalty agreement with
) provides little or no benefit due to lower rates.
We also note Covidien???s effort to expand its oximetry and
monitoring products portfolio. In late 2012, the company won U.S.
Food and Drug Administration (FDA) 510(k) approval as well as
European Economic Area (EEA) CE Mark clearance for its Nellcor
Bedside Respiratory Patient Monitoring system.
Masimo carries a Zacks Rank #4 (Sell).
Given Imaging Ltd.
) are Zacks Rank #1 (Strong Buy) stocks, which are expected to do
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