Masimo (MASI) recently acquired SEDLine, an innovator in brain function monitoring. Masimo intends to merge SEDLine products with its own pipeline, consisting of non-invasive medical technologies, and subsequently pursue commercial entry. The company did not disclose the terms of the deal.
SEDLine monitors give medical practitioners clinical information that enables them to deliver optimal anesthesia. Select US hospitals have chosen SEDLine products, expecting better performance compared to other brain function monitoring technologies. They also anticipate favorable outcomes from patient care along with cost containment.
Hospitals monitor the brain function of patients in order to gauge the severity of anesthesia and sedation. Brain function monitors rely on analysis of the electroencephalogram (EEG) to calibrate electrical signals emanating from the brain and then convert changes to degree of consciousness. Medical providers have successfully used brain function monitoring in a number of medical scenarios, like sedated patients in intensive care units and anesthetized patients undergoing surgery in the operation theater.
Prior to its acquisition, SEDLine was a privately held company and received financial assistance from Masimo last year. SEDLine has developed its expertise over a 10-year period to provide 4-channel EEG integrated algorithm performance. The 4-channel EEG screen will provide a diagnostic display that can be harmonized for each patient.
Masimo’s non-invasive monitoring technologies can be integrated into a wide range of multi-parameter and multi-use monitoring devices. Introduced in 1995, the Masimo SET has a track record of providing reliable measurement of SpO2 and pulse rate.
In 2005, Masimo launched its Rainbow SET Pulse CO-Oximetry technology, which permits non-invasive and continuous monitoring of additional blood constituents that earlier required invasive procedures. Subsequently, in 2009, Masimo introduced Rainbow SET Accoustic Monitoring for continuous non-invasive monitoring of acoustic respiration rate. Masimo generated total revenue of $98.7 million in the first quarter of 2010 versus $85.5 million in the year-ago period.
We currently have a Neutral rating on Masimo.
Read the full analyst report on “MASI”
Zacks Investment Research
