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Masimo's (MASI) ORi Favored by New Study For ICU Patients' ETI

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Masimo Corporation (MASI - Free Report) recently announced the findings of a favorable study result after evaluating the ability of Masimo Oxygen Reserve Index (ORi) to predict mild hypoxemia (an abnormally low oxygen concentration in blood) during endotracheal intubation (“ETI”) in ICU patients. Findings of the prospective blinded observational study were published in Annals of Intensive Care.

For investors’ note, the study concluded that the time between the fall in ORi and the following decrease in oxygen saturation (SpO2) below their respective benchmarks may allow taking preventive action in order to avoid any adverse situation. It was also determined that a higher ORi value during preoxygenation was individualistically protective against hypoxemia.

It should be noted that the ORi has not received the FDA 510(k) clearance, and hence is not available for sale in the United States. However, it is available outside the United States.

The latest positive study outcome is a major stepping stone for Masimo’s patient-monitoring business across the world.

Significance of the Study

ORi is a non-invasive and continuous trending index that expands oxygen monitoring on patients on supplemental oxygen. It is enabled by the multi-wavelength rainbow Pulse CO-Oximetry platform and is offered alongside SpO2 ascertained by Masimo SET pulse oximetry.

The rationale behind evaluating whether ORi could offer early warnings of imminent hypoxemia during the ETI procedure is the importance of optimizing preoxygenation in patients needing the procedure and the fact that ORi delivers information past the range explored by SpO2.

Additionally, it was noted that ORi monitoring can aid in identifying patients who do not increase their oxygen reserve despite preoxygenation and are therefore at higher risk of desaturation during ETI. Such patients may benefit from a longer preoxygenation period or a change in device. Researchers also noted that a fall in ORi might detect a fault in the preoxygenation technique, such as an insufficient oxygen flow rate or major leaks.

Industry Prospects

Per a report by MarketsAndMarkets, the global patient-monitoring devices market is projected to reach $55.1 billion by 2025 from $36.4 billion in 2020 at a CAGR of 8.6%. Factors like technological advancements and growing preference for telehealth services amid the pandemic are expected to drive the market.

Given the market potential, the positive study outcome is likely to provide a significant boost to Masimo’s business globally.

Notable Developments

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

The company, in August, announced the CE marking and launch in western Europe of Masimo SafetyNet Alert, an arterial blood oxygen saturation monitoring and alert system designed for use at home.

The same month, Masimo announced publication of the findings of a study in the Turkish Journal of Emergency Medicine, in which researchers examined the role that non-invasive continuous Masimo PVi might play in monitoring volume status and volume changes in spontaneously-breathing patients undergoing hemodialysis.

Also in August, the company announced the findings of a study published in the Journal of Pain & Relief, wherein researchers explored the utility of Masimo Bridge in reducing postoperative opioid needs in patients undergoing kidney donor surgery.

Price Performance

Shares of Masimo have gained 28.5% in the past year compared with the industry’s 21.3% growth and the S&P 500's 38.2% 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) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .

Henry Schein’s long-term earnings growth rate is estimated at 13.9%. 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.

IDEXX’s long-term earnings growth rate is estimated at 19.9%. It currently has a Zacks Rank #2.

Intuitive Surgical’s long-term earnings growth rate is estimated at 9.7%. It currently carries a Zacks Rank #2.