), a leader in non-invasive monitoring technology for patient care,
and Easton Hospital of Pennsylvania recently revealed that Masimo
is installing a patient monitoring set up, namely Masimo rainbow
Pulse CO-Oximetry know-how and Masimo Patient SafetyNet.
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Easton Hospital is a major academic hospital catering to over
300,000 inhabitants in Northampton County of Pennsylvania and its
adjacent areas. The hospital, which opened in 1890, provides
cardiac care, emergency room and other vital services.
Masimo Patient SafetyNet non-intrusively monitors the physiological
state of as many as 80 patients using Signal Extraction Pulse
Oximetry. The Patient SafetyNet set up timely finds deviations that
indicate deteriorating health conditions. It then sends an
automatic message to the concerned medical practitioner, thereby
facilitating care in good time.
Furthermore, Easton Hospital will utilize the portable Masimo
Pronto CO-Oximeter for non intrusively monitoring pulse rate, total
hemoglobin and other parameters without needle penetration. Pronto
is derived from Masimo Rainbow SET know how which provides
continuous and timely gauge of blood components and breathing
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
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 OEM
partners for sales. Our Neutral recommendation is supported by a
short-term Zacks #3 Rank (Hold).