), a leader in non-invasive monitoring technology, recently
revealed that Libya is the first nation to start utilizing the
Masimo Pronto-7 to check prospective blood donors for poor
hemoglobin count at large blood collection centers. The Pronto-7
is a hemoglobin monitoring device which is both non-invasive and
held by hand.
The Pronto-7 fits into the palm of a hand and provides a ready
mechanism for monitoring hemoglobin, perfusion index, pulse rate
and SpO2 in less than 60 seconds. The Pronto-7 does not rely on
needles or lab tests.
People in the Middle East frequently donate blood prior to
surgery in the family or among friends. Thus far, before the
adoption of Pronto-7, blood collection centers in Libya would
rely on invasive withdrawals of blood to test donors for anemia.
According to a minister in the Libyan government, the country's
adoption of Pronto-7 is an example of its commitment to quality
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 domestic market.
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, which translates into a
short-term Sell rating.
Cantel Medical Corp.
) are Zacks Rank #1 (Strong Buy) stocks, which are expected to do
CANTEL MED CORP (CMN): Free Stock Analysis
COVIDIEN PLC (COV): Free Stock Analysis
CYBERONICS INC (CYBX): Free Stock Analysis
MASIMO CORP (MASI): Free Stock Analysis
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