CareFusion Corp. (CFN) entered into a multi-year technology licensing agreement with Masimo Corp. (MASI) regarding the use of Masimo Rainbow SET Pulse CO-Oximetry technology in CareFusion infusion and respiratory products, which are presently under development. 
The agreement enables CareFusion’s future infusion and respiratory products to non-invasively and continuously measure multiple blood constituents to more accurately assess dyshemoglobins affecting oxygenation, predict fluid responsiveness, and provide earlier identification of respiratory compromise.
CareFusion’s ventilators and infusion pumps facilitate earlier detection, diagnosis and treatment of potentially life-threatening conditions by accessing total hemoglobin (SpHb), oxygen content (SpOC), carboxyhemoglobin (SpCO), methemoglobin (SpMet), and PVI for fluid responsiveness, in addition to oxyhemoglobin (SpO2), perfusion index (PI), and pulse rate.
CareFusion is a medical technology company formed recently by the spin-off of the Clinical and Medical Products business of Cardinal Health, Inc. (CAH). The spin-off was completed in September 2009 through a pro rata distribution of roughly 81% of CareFusion’s common stock.
Masimo develops, manufactures and markets a family of non-invasive blood monitoring systems that consist of a monitor, circuit board and sensors. The systems are primarily used to monitor blood oxygen saturation levels and protect against hypoxemia and hyperoxemia. Hypoxemia, low blood-oxygen levels, can result in brain damage and death. Hyperoxemia, high-blood oxygen levels, can result in permanent eye-damage and blindness. If infusion and respiratory products are developed successfully, the agreement enables CareFusion to use Masimo’s expertise in pulse oximetry technology. This will boost demand for CareFusion infusion and respiratory products which will expand the company’s top-line.
Masimo is a market leader in the pulse oximetry monitoring equipment market industry. The company’s closest competitors are Haemonetics Corp. (HAE) and Becton, Dickinson and Co. (BDX).
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