), a leader in non-invasive monitoring technology, recently
revealed that Uludag University Hospital, a renowned healthcare
and education institution in Turkey, has acquired Masimo SpHb, a
novel expertise that permits medical practitioners to
continuously and non-invasively track blood hemoglobin.
Uludag University Hospital is one of only two hospitals in
Turkey with accreditation from Joint Commission International. It
is now using Masimo SpHb in its surgical rooms. The hospital has
a total of 880 beds. Among other benefits, the hospital is
gaining from lower sensor usage and better detection
Masimo is a market leader in the pulse oximetry monitoring
equipment industry. Its 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 its patented SET offering remains its mainstay, the
rainbow measurements represent another growth driver in hospital
care. However, Masimo relies on third-party providers like
original equipment manufacturers (OEMs) for a part of its
business and customer concentration raises concern. Additionally,
we remain concerned about its 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 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).
Intuitive Surgical, Inc.
HeartWare International Inc.
) are Zacks Rank #2 (Buy) stocks, which are expected to do
COVIDIEN PLC (COV): Free Stock Analysis
HEARTWARE INTL (HTWR): Free Stock Analysis
INTUITIVE SURG (ISRG): Free Stock Analysis
MASIMO CORP (MASI): Free Stock Analysis
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