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Masimo (MASI) Announces Positive Study Results on PBM by SpHb

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Masimo Corporation (MASI - Free Report) announced the findings of a prospective, double-blinded, randomized, controlled trial where researchers assessed the impact of non-invasive and continuous hemoglobin monitoring with Masimo SpHb on blood transfusion management for adult patients undergoing elective major surgery with anticipated blood loss of 20% or more. The results of the latest prospective study were published in the Journal of the College of Physicians and Surgeons Pakistan.

Masimo’s SpHb technology currently supports clinicians and patient care in above 75 countries.

The latest positive study outcome is a major stepping stone for Masimo’s non-invasive continuous hemoglobin monitoring business across the world. This is likely to solidify Masimo’s position in the global real-time patient monitoring space.

Significance of the Study

Researchers noted that delayed or unnecessary blood transfusions have been associated with increased mortality and morbidity. Hence, they sought to investigate continuous hemoglobin monitoring with Masimo SpHb, which offers continuous trending of hemoglobin levels, provided non-invasively and in real time.

The researchers found that the study demonstrated that the postoperative red blood cell transfusion rate was lower and the hemoglobin level of ICU patients higher when monitored with SpHb in the operating room. Thus, they concluded that SpHb measurement in major surgical cases could accompany conventional Hb measurement methods, thus allowing effective patient blood management (PBM) practice. Per them, the use of such an advanced monitoring method in major surgeries may increase patient safety as this may decrease mortality and morbidity by reducing post-operative blood transfusion.

The study adds additional evidence to the growing literature on the value of continuous hemoglobin monitoring with SpHb. SpHb, as part of patient blood management programs, has been found to improve outcomes in both high- and low-blood loss surgeries, such as reducing the units of red blood cells transfused per patient and reducing the time to transfusion, among other benefits. This evidence of SpHb’s impact on outcomes has been observed worldwide, thus representing seven countries on four different continents.

Industry Prospects

Per a report by MarketsandMarkets, the global PBM market is projected to reach $15.3 billion by 2024 from $10.7 billion in 2019 at a CAGR of 7.4%. Factors like the rising prevalence of blood disorders, the growing number of blood donations increasing the risk of transfusion-transmitted infections, and escalation in road accidents, injuries, surgeries and trauma 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

Last month, Masimo announced its third-quarter 2022 results, with the top and the bottom line beating expected. The company’s robust uptick in the top line and its healthcare business was encouraging. Masimo also recorded robust order shipments and witnessed the solid expansion of its installed base during the reported quarter, which was promising.

In August, Masimo announced the full market release of the Masimo W1 health watch for consumer use. In the same press release, the company also announced the availability of Masimo W1 with Hydration Index (Hi) in a limited market release and the launch of Personal SafetyNet (a paid subscription service integrated within the Masimo Health app). Additionally, Masimo also entered the general launch phase of a medical version of Masimo W1 for use in medical applications outside the United States, with extra measurement capabilities such as spot-check electrocardiogram and atrial fibrillation detection, among others.

Price Performance

Shares of Masimo have lost 48.1% in the past year compared with the industry’s 20.9% decline and the S&P 500's 12.8% fall.

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Zacks Rank & Key Picks

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

Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , ShockWave Medical, Inc. (SWAV - Free Report) and McKesson Corporation (MCK - Free Report) .

AMN Healthcare, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMN Healthcare has gained 11.4% against the industry’s 26.3% decline in the past year.

ShockWave Medical, carrying a Zacks Rank #2 at present, has an estimated growth rate of 21.2% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 146.1%.

ShockWave Medical has gained 40.9% against the industry’s 20.9% decline over the past year.

McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 4.8%.

McKesson has gained 72.7% against the industry’s 5.9% decline over the past year.

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