Masimo Corp. (MASI), a leader in the pulse oximetry (a measurement of the amount of oxygen attached to the hemoglobin) monitoring equipment market, has reportedly extended its supply agreement with Premier Purchasing Partners LP (the purchasing unit of Premier Inc.), one of the largest health care group purchasing organizations in the US.
Under the expanded supplier contract (valid through May 31, 2012), the members of Premier can now buy the comprehensive suite of Masimo’s industry-leading standalone and portable Rainbow Pulse CO-Oximeters (including the new Pronto-7) and sensors at significant discount in addition to the company’s legacy Signal Extraction Technology (SET) pulse oximetry solutions.
Masimo’s non-invasive monitoring technologies can be integrated into a wide range of multi-parameter and multi-use monitoring devices. The Masimo SET (launched in 1995) has a track record of providing reliable measurement of SpO2 (pulse oximetry) and pulse rate.
Masimo launched its Rainbow SET Pulse CO-Oximetry technology in 2005, which allows non-invasive and continuous monitoring of additional blood constituents that earlier required invasive procedures. Subsequently, in 2009, the company introduced Rainbow SET Accoustic Monitoring for continuous non-invasive monitoring of acoustic respiration rate. Higher demand for Masimo SET and Rainbow SET monitors continue to spur double-digit revenue growth.
Masimo received U.S. Food and Drug Administration (FDA) clearance of Pronto-7, a hand-held device which measures hemoglobin in less than a minute through non-invasive means. The Pronto-7 integrates Masimo’s proprietary Rainbow 4D technology, which will provide quick and precise spot measurement of total hemoglobin and pulse rate.
We are optimistic about the prospects of Masimo, given the sizeable market opportunity and expanded pulse oximetry utilization into non-critical care areas of hospital. However, we are apprehensive about intense competition and the company’s dependence upon its OEM partners for sales. We currently have a Neutral recommendation on Masimo.
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