), a leader in non-invasive patient monitoring technology,
announced the European CE Mark approval and introduction of the new
fractional arterial oxygen saturation parameter - SpfO2 through the
rainbow Universal ReSposable SuperSensor.
The SpfO2 as well as the rainbow SuperSensor are awaiting 510(k)
clearance from the U.S. Food and Drug Administration (FDA). The
rainbow SuperSensor is the first non-invasive sensor to provide
concurrent monitoring of SpHb, SpCO, SpMet, SpfO2, SpOC, Perfusion
Index, PVI, and Measure-Through Motion and Low Perfusion SpO2 and
pulse rate of the patient.
To date, pulse oximeters were known to evaluate and display
functional oxygen saturation parameter (SpO2). The technological
advancement at Masimo will enable its rainbow Pulse CO-Oximeters to
measure and display SpfO2. The debut of the SpfO2 parameter will
improve standards of care by helping clinicians in decision making
about common therapies like oxygen administration and red blood
The rainbow SuperSensor, as Masimo's newest introduction, is
expected to bolster rainbow product sales and increase its
worldwide installed base. Revenues from rainbow products improved
7% year over year to $9.7 million in the second quarter of 2012.
The company shipped 37,300 new Pulse Oximeters and Pulse
CO-Oximeters in the most recent quarter. This increased its global
installed base to over a million units.
The CE Mark approval will further boost Masimo's foothold in the
international market. International product revenues increased 7%
year over year (in terms of constant currency) to $32.1 million.
Ex-U.S. product revenues represented 27.8% of total revenues with
revenues from Europe, Middle East and Africa representing 13.8% of
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.
While Masimo's patented SET offering remains its mainstay, the
rainbow measurements represent another growth driver beyond
hospital care. The rainbow SpHb measurement platform continues to
record steep growth with 48% year-over-year surge in the most
However, the company's reliance on third-party providers like
OEMs for a part of its business and customer concentration raises
concern. We also note
) effort to expand its oximetry and monitoring products portfolio.
Earlier this month, the company won the U.S. Food and Drug
Administration (FDA) 510(k) approval as well as the European
Economic Area (EEA) CE Mark clearance for its Nellcor Bedside
Respiratory Patient Monitoring system.
COVIDIEN PLC (COV): Free Stock Analysis Report
MASIMO CORP (MASI): Free Stock Analysis Report
To read this article on Zacks.com click here.
We currently have a Neutral recommendation on Masimo. The stock
carries a Zacks #3 Rank, which translates into a short-term Hold