), a leader in non-invasive monitoring technology for patient care,
recently revealed that it placed the Masimo Patient SafetyNet at
the University Medical Center of Princeton at Plainsboro, N.J.
Among other benefits, this offering from Masimo has proven to cut
down on ICU transfers.
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The Masimo Patient SafetyNet comprises, among several features, Low
Perfusion pulse oximetry and Masimo SET Measure-through Motion. The
Masimo Patient SafetyNet monitors the physiological variables of
patients and identifies alterations that signal deteriorating
health conditions. Upon observing a decline in health status, the
system notifies the medical practitioner.
The University Medical Center of Princeton at Plainsboro received a
high grade for patient safety from The Leapfrog Group. Of the 2,600
hospitals that were considered, just 25% or so have been awarded an
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).