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Masimo (MASI) Boosts Its Product Suite With Latest Release

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Masimo Corporation (MASI - Free Report) recently announced the release of its latest and most advanced rainbow SET board, MX-7. The board has been engineered for integration into numerous multi-parameter monitors which are available from the company’s various original equipment manufacturing (“OEM”) partners.

For investors’ note, the MX-7 has the ability to lend support to all 13 of Masimo’s SET pulse oximetry and rainbow Pulse CO-Oximetry measurements in an advanced module which has been re-designed to lower power requirements.

The latest release is expected to strengthen the company’s growing portfolio of technology boards on a global scale.

Significance of the Announcement

The MX-7, an addition to Masimo’s technology boards suite used both in its own patient monitors and also available to its OEM partners, builds on the current MSX low-power SET board and MX-5 rainbow board. This is done by offering more efficient power utilization and scaling of the power drawn, based upon the blend of rainbow SET parameters being monitored to allow longer battery run times.

The MX-7 also offers the full suite of Masimo’s advanced non-invasive SET and rainbow parameters.

Per management, the latest offering is aimed at ensuring that Masimo’s full suite of SET and rainbow measurements are widely available to all its customers.

Industry Prospects

Per a report by Market Research Future, the global healthcare OEM market was estimated to be $160 billion in 2016 and is projected to reach $250 billion by the end of the year 2023 at a CAGR of 16.2%. Factors like rising improved technology demands, innovations in healthcare IT and increasing importance of patient safety as well as of quality healthcare products, are likely to drive the market.

Given the market potential, the latest offering from Masimo is expected to provide a significant boost to the company’s business worldwide.

Recent Developments

Of late, Masimo has witnessed a few notable developments across its business.

The company, this month, announced favorable findings of a study published in the Journal of Critical Care. The study assessed the ability of two parameters (Patient State Index and Suppression Ratio) provided by Masimo SedLine brain function monitoring to predict neurological outcomes and long-term survival in post-cardiac-arrest ICU patients.

Masimo, in June, announced receipt of the FDA 510(k) clearance for its wearable, wireless thermometer — Radius T° — for both prescription and over-the-counter use on patients and consumers above the age of five.

Also in June, the company announced positive findings of a study published in the Turkish Journal of Medical Sciences. The study evaluated the ability of Oxygen Reserve Index to guide oxygenation by measuring its impact on hyperoxemia (increase in arterial oxygen partial pressure)-mediated morbidity during one-lung ventilation, conducted as part of thoracic surgery.

Price Performance

Shares of the company have gained 7.2% in the past year compared with the industry’s 12.2% growth and the S&P 500's 34.4% rise.

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Zacks Rank & Key Picks

Currently, Masimo carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Henry Schein, Inc. (HSIC - Free Report) , AMN Healthcare Services Inc (AMN - Free Report) and Align Technology, Inc. (ALGN - Free Report) .

Henry Schein’s long-term earnings growth rate is estimated at 11.2%. The company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 6.5%. It currently carries a Zacks Rank #2.

Align Technology’s long-term earnings growth rate is estimated at 23.2%. It currently carries a Zacks Rank #2.

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