), a leader in non-invasive monitoring technology, unveiled its
iSpO2 pulse oximeter cable and sensor at the International CES,
organized by Consumers Electronics Association (CEA) in Las
Vegas. The product will be on display between January 8 and10 at
The device is equipped with Measure-Through Motion and Low
Perfusion Masimo SET technology and is intended for use with
) iPhone, iPad or iPod touch with a 30-pin connector. The company
had introduced the product in December 2012, marking the launch
of Masimo's first consumer product.
iSpO2 is built with the technology used in Masimo's
well-regarded line of pulse oximeters and Pulse CO-Oximeters.
Masimo's iSpO2 cable and monitor can be used on the iPhone, iPad
or iPod touch to monitor blood oxygenation (SpO2), pulse rate and
perfusion index measurements.
However, the technology is meant for sports and aviation uses
and is not for medical use because the iSpO2 Medical (the version
intended for medical use) is awaiting European CE Mark approval
as well as 510(k) clearance by the U.S. Food and Drug
Administration (FDA). Following the clearance, Masimo's iSpO2
will be supplied by the company's distribution network.
The company's latest technology should beef up its client
base, which already includes hospitals and health systems with a
sizeable footfall across the U.S. The move to display the product
at the International CES is a marketing initiative by the company
to popularize the product. Going forward, the higher adoption of
the technology will act as a positive catalyst as Masimo's
clients continue to standardize their non-invasive monitoring
Masimo estimated the global market size for pulse oximetry to
be more than $1 billion in 2011. Based on the growing barriers to
entry in the non-invasive parameters' product market and the
widespread adoption of pulse oximetry in non-critical areas of
hospital care, Masimo should tap the opportunity to accelerate
its top-line growth.
However, the company's reliance on third-party providers such
as 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. The
company might also faces challenges from
) efforts to expand its oximetry and monitoring products
The stock currently retains a Zacks #4 Rank, which implies a
Sell rating for the short term.
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