Masimo Corporation (MASI - Free Report) recently received the CE marking of Eve, a screening application for newborns diagnosed with critical congenital heart disease (CCHD). The application will function through the flagship Rad-97 Pulse CO-Oximeter.
Per management, Eve is capable of transforming the pulse oximeters into intuitive screening tools and help clinicians perform the screening of the newborns with ease.
The application is yet to receive a FDA clearance, which will strengthen Masimo’s position in the MedTech space.
Eve combines the power of Masimo SET Measure-through Motion and Low Perfusion pulse oximetry with a pre-ductal to post-ductal synchronization algorithm designed to reduce calculation errors. This cost-effective application is available on the Radical-7 Pulse CO-Oximeter.
The application provides visual instructions, animations, an automatic synchronization algorithm and a detailed yet convenient display of screening results. It labels results with unique patient identifiers for the mother and the newborn.
Per management, studies have shown that Masimo SET pulse oximetry can help improve CCHD screening, helping to save many newborns’ lives while reducing the cost of care.
Newborn Screening Market Holds Promise
According to Stratistics MRC, the Global Newborn Screening Market is accounted from $533.77 million in 2016 to reach $1395.65 million by 2023 at a CAGR of 12.7%.
Increasing chromosomal abnormalities in infants, growing awareness in urbanized nations and rising panel of newborn infections are some of the key factors fueling the market growth.
This data is indicative of the potential the critical congenital heart disease market currently holds globally. Undoubtedly, the launch of Eve post this CE mark approval should get strong customer acceptance in Europe.
Over the last six months, Masimo has been underperforming the broader industry. The stock has gained 1.9% compared with the industry’s rally of 12.2%.
However, the recent development is likely to boost Masimo’s shares in the quarters ahead.
Zacks Rank & Stocks to Consider
Masimo carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are athenahealth (ATHN - Free Report) , HCA Healthcare (HCA - Free Report) and Neogen (NEOG - Free Report) . Each of the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank Stocks Here.
athenahealth has a long-term projected growth rate of 23.1%. The stock has gained 7.8% compared with the industry’s rally in the last three months.
HCA Healthcare has a long-term projected growth rate of 11.5%. In the last six months, the stock has returned 26.2%.
Neogen has a long-term projected growth rate of 15%. In the last six months, the stock has returned 10.1%.
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