), a leader in non-invasive monitoring technology, recently
revealed that the well regarded Holland Hospital, serving the
Ottawa and Allegan counties of Canada, is set to add new
technical abilities that permit doctors to non-invasively and
without interruption gauge blood hemoglobin by utilizing Masimo
Masimo's SpHb technology has proven its ability to curtail
risky transfusions of blood. Simultaneously, it is able to reduce
costs in the operating room.
Holland Hospital caters to the health care requirements of the
greater Holland area in Canada. Its primary facility houses 189
beds and it has many secondary locations. The hospital has 2,000
employees of whom 300 are specialty or primary care doctors.
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 (Sell).
Given Imaging Ltd.
) are Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks,
respectively, which are expected to do well.
COVIDIEN PLC (COV): Free Stock Analysis
CYBERONICS INC (CYBX): Free Stock Analysis
GIVEN IMAGING (GIVN): Free Stock Analysis
MASIMO CORP (MASI): Free Stock Analysis
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