), 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.
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.
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