Another Hospital Upgrades with MASI - Analyst Blog

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Masimo Corporation ( MASI ), 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 capability.    

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 Covidien ( COV ) 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.


 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: COV , MASI

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