), a leader in non-invasive patient monitoring know how, recently
revealed that the Albany Medical Center of north-eastern New York
had adopted Masimo rainbow SET Pulse CO-Oximetry and sensor set up.
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This adoption arms the Albany Medical Center with path breaking
rainbow know how that permits medical practitioners to gauge
several blood components, respiration and different physiological
measures without needle-based blood withdrawals and slow- moving
Albany Medical Center includes both the Albany Medical College and
the 651-bed Albany Medical Center Hospital. The Albany Medical
Center Hospital caters to over 32,500 inpatients and over half a
million outpatients each year.
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 accretive.
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 Original
Equipment Manufacturers (OEM) partners for sales. We currently have
a Neutral recommendation on Masimo. The stock currently retains a
Zacks #3 Rank, which translates into a short-term Hold rating.