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Masimo Corporation (MASI - Free Report) announced that it has amended its royalty agreement with Nellcor. The agreement was originally inked by the two parties in Jan 2006.
Per the amended agreement, Medtronic will continue to pay Masimo a royalty of 7.75% for its current range of pulse oximetry products sold in the U.S. till Oct 6, 2018 only. After the aforementioned date, no further royalties will be due under the agreement.
Masimo’s pulse oximetry prodcuts aim at giving accurate oxygen saturation and pulse rate measurements. The company continues to introduce new products which include O3 regional oximetry, iSpO2 Mobile health pulse oximeter for Android, Radius-7 wearable wireless Rainbow Pulse Co-Oximeter and respiration monitor and the Rainbow DCI-mini SpHb sensor for infants and small children. We believe Masimo’s innovative product line will drive top-line growth going forward.
Wider adoption of the non-invasive patient monitoring technology is helping the company to gain market share. Also, Masimo’s SET pulse oximetry business has considerable growth opportunities in international markets. Moreover, the recent FDA 510 (k) approvals for the Radius 7 wearable and the O3 regional oximetry device are the other positives of the company.
This manufacturer of non-invasive monitoring technologies is currently riding on its robust business. Last month, the company reported impressive second-quarter 2016 results and projected higher total revenue and earnings for full-year 2016. These developments continue to bode well for the company, as reflected by the new high.
For 2016, Masimo projects total revenue of $689 million, up from the previous projection of $677 million. Product revenues are expected at around $658 million, up from the previous guidance of $647 million. Meanwhile, Royalty revenue is expected at $31 million, up from the previously guided $30 million.
Masimo forecasts gross margin of approximately 65%, up from 64.7% guided previously. Management expects operating expense of approximately $314 million, which is also slightly higher than the previous guidance of $312 million. Masimo projects earnings of $2.01 per share, up from the earlier projected figure of $1.83.
Irvine, CA-based Masimo develops, manufactures and markets a family of non-invasive monitoring systems. The company’s flagship product – Signal Extraction (SET) Pulse Oximetry – is used to monitor blood oxygen saturation levels and protect against hypoxemia and hyperoxemia. The device also measures pulse rate.
Zacks Rank & Other Key Picks
Currently, Masimo sports a Zacks Rank #1 (Strong Buy). Other favorably ranked stocks in the medical space include Heska Corporation , ANI Pharmaceuticals, Inc. (ANIP - Free Report) and Anika Therapeutics Inc. (ANIK - Free Report) . Each of these carries a Zacks Rank #1.
Click to see them now>>
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Masimo Amends Nellcor's Pulse Oximetry Royalty Agreement
Masimo Corporation (MASI - Free Report) announced that it has amended its royalty agreement with Nellcor. The agreement was originally inked by the two parties in Jan 2006.
Per the amended agreement, Medtronic will continue to pay Masimo a royalty of 7.75% for its current range of pulse oximetry products sold in the U.S. till Oct 6, 2018 only. After the aforementioned date, no further royalties will be due under the agreement.
Masimo’s pulse oximetry prodcuts aim at giving accurate oxygen saturation and pulse rate measurements. The company continues to introduce new products which include O3 regional oximetry, iSpO2 Mobile health pulse oximeter for Android, Radius-7 wearable wireless Rainbow Pulse Co-Oximeter and respiration monitor and the Rainbow DCI-mini SpHb sensor for infants and small children. We believe Masimo’s innovative product line will drive top-line growth going forward.
Wider adoption of the non-invasive patient monitoring technology is helping the company to gain market share. Also, Masimo’s SET pulse oximetry business has considerable growth opportunities in international markets. Moreover, the recent FDA 510 (k) approvals for the Radius 7 wearable and the O3 regional oximetry device are the other positives of the company.
This manufacturer of non-invasive monitoring technologies is currently riding on its robust business. Last month, the company reported impressive second-quarter 2016 results and projected higher total revenue and earnings for full-year 2016. These developments continue to bode well for the company, as reflected by the new high.
MASIMO CORP Price
MASIMO CORP Price | MASIMO CORP Quote
For 2016, Masimo projects total revenue of $689 million, up from the previous projection of $677 million. Product revenues are expected at around $658 million, up from the previous guidance of $647 million. Meanwhile, Royalty revenue is expected at $31 million, up from the previously guided $30 million.
Masimo forecasts gross margin of approximately 65%, up from 64.7% guided previously. Management expects operating expense of approximately $314 million, which is also slightly higher than the previous guidance of $312 million. Masimo projects earnings of $2.01 per share, up from the earlier projected figure of $1.83.
Irvine, CA-based Masimo develops, manufactures and markets a family of non-invasive monitoring systems. The company’s flagship product – Signal Extraction (SET) Pulse Oximetry – is used to monitor blood oxygen saturation levels and protect against hypoxemia and hyperoxemia. The device also measures pulse rate.
Zacks Rank & Other Key Picks
Currently, Masimo sports a Zacks Rank #1 (Strong Buy). Other favorably ranked stocks in the medical space include Heska Corporation , ANI Pharmaceuticals, Inc. (ANIP - Free Report) and Anika Therapeutics Inc. (ANIK - Free Report) . Each of these carries a Zacks Rank #1.
Click to see them now>>