), a leader in non-invasive monitoring technology for patient care,
recently revealed that Hamilton Medical Center located in Dalton,
Georgia had upgraded to rainbow Pulse CO-Oximetry and Masimo SET
pulse oximetry offerings. These offerings provide medical
practitioners with continuous and non-intrusive patient monitoring
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Hamilton Medical Center is an acute-care facility which offers
noteworthy surgical and medical care. The hospital operates 282
beds. For the past couple of years, HealthGrades has selected
Hamilton Medical Center as a Distinguished Hospital for Clinical
Excellence. This recognition places Hamilton Medical Center in the
top 5% of inpatient facilities in the U.S.
Earlier, in the second quarter of 2012, Masimo completed the
strategic acquisition of PHASEIN AB of Sweden. The purchase price
was $30 million. PHASEIN is a provider of sidestream and mainstream
capnography offerings. It had sales of about $10 million. This
acquisition provides the company with another set of measurable
variables using its know-how. It is expected that earnings per
share will be neutral in 2013 and subsequently turn accretive.
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.
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. Further,
competition is intense and Masimo partly depends upon its Original
Equipment Manufacturers (OEM) partners for sales. We currently have
a Neutral recommendation on Masimo. The stock currently retains a
Zacks #2 Rank, which translates into a short-term Buy rating.