Masimo (MASI) Boosts O3 Platform With Three New Indices

Masimo Corporation (NASDAQ:MASI) announced that it developed three additional indices (delta cHb, delta HHb, and delta O2Hb) for O3 Regional Oximetry. These additions will enable clinicians to view the relative contribution of each component to a patient’s overall cerebral oxygen saturation (rSO2). With the developments, Masimo will not only add to its Signal Extraction Technology (SET) Pulse Oximeter Technology but also bolster patient monitoring, which in turn will drive growth.

It is important to note here that O3, which is available on the Masimo Root Patient Monitoring and Connectivity Platform, has been approved by the FDA. The additions are likely to boost the O3 platform.

Few Words About O3 Regional Oximetry

O3 Regional Oximetry — one of Masimo’s monitoring solutions — helps in monitoring cerebral oxygenation in cases, wherein peripheral pulse oximetry alone might not be enough to fully indicate oxygen in the brain. The solution seamlessly integrates with the Root platform along with SedLine brain function monitoring, thereby delivering a more comprehensive brain monitoring solution.

With the use of NIRS, clinicians will be able to monitor rSO2 on both sides of the brain. Before the introduction of the three additional indices, rSO2 has been displayed as a single, continuous value for each side of the brain. But now O3 can provide information about the changes in the underlying component utilized to calculate rSO2 values.

Masimo’s Root Platform at a Glance

Notably, The company’s Root platform is a very powerful, expandable patient monitoring and connectivity hub that brings together a range of technologies, devices and systems to offer multimodal monitoring and connectivity solutions in a single, clinician-centric platform.

Root’s plug-and-play expansion capabilities help in simultaneous monitoring of O3 and other measurements like SET Measure-through Motion and Low Perfusion pulse oximetry.

Masimo: A Leading Player in Pulse Oximetry

The company is a global pioneer in the field of highly-advanced non-invasive monitoring technologies. Its flagship SET pulse oximetry or SET pulse oximeter solution successfully eliminates the limitations of conventional mediums. Masimo’s rainbow SET technology has been gaining traction, driven by rapid product development.

Recently, the company introduced Pathway, which is a feature for the Root Patient Monitoring and Connectivity Platform. Pathway is likely to aid clinicians in simplifying decision making associated with newborn resuscitation. With the new feature, Masimo will add to its SET Pulse Oximeter Technology.

Patient Monitoring in Focus

Masimo is touted to be the most innovative company in the patient monitoring space. Per a report by Research and Markets, the global market for patient monitoring devices will witness a CAGR of 8.2% to nearly $30.7 billion by 2022. Growing economy, rise in the prevalence of chronic diseases and increasing adoption of cost-effective remote patient monitoring devices will likely drive growth for this market.

The company remains committed toward enhancing patient monitoring and its efforts reflect the same. In non-invasive patient monitoring, Masimo’s Patient SafetyNet, Rainbow acoustic monitoring, SedLine brain function monitoring, Capnography and gas monitoring deserve mention.

Additionally, the company’s program to improve opioid safety via innovative monitoring technology for both post-surgical wards and home use deserves mention in this regard.

Zacks Rank and Price Performance

Currently, Masimo carries a Zacks Rank #2 (Buy). Shares of the company have gained 26.1% in a year against the industry’s decline of 4.5%. The stock also outpaced the S&P 500 Index’s rally of 1.9% in the same timeframe.

Other Key Picks

Some other top-ranked stocks from the broader medical space are Baxter International Inc. (NYSE:BAX) , Amedisys, Inc. (NASDAQ:AMED) and CONMED Corporation (NASDAQ:CNMD) , each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Baxter has a long-term earnings growth rate of 12.8%.

Amedisys has a long-term earnings growth rate of 16.3%.

CONMED has a long-term earnings growth rate of 14.9%.

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