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Masimo's SET Pulse Oximetry Detects Sleep Apnea in Children

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Masimo Corporation (MASI - Free Report) recently announced that its SET Measure-through Motion and Low Perfusion pulse oximetry might be a useful initial screening method to identify children with Down Syndrome (DS) who are at a high risk of obstructive sleep apnea (OSA).

Out of 161 children with DS, 25 were separately diagnosed with OSA having monitored overnight using Masimo Radical-7 Pulse CO-Oximeters.

Notably, the screening method might replace multichannel sleep studies, which are expensive and also available at specialist centers.

For investors’ notice, in the recently-reported second quarter of 2018, Masimo shipped a whopping 58,700 oximeters and brain function monitors, which drove overall earnings.

Global Prospects

Per research by MarketsandMarkets, the sleep apnea devices market is projected to reach a worth of $6.49 billion by 2023 from an estimated $4.44 billion in 2018, at a CAGR of 7.8%. Increase in the incidence of lifestyle diseases like obesity and government efforts to spread awareness regarding sleep apnea propel growth.

Hence the latest development has been a well-timed one for Masimo.

Sleep Apnea in US

A research by the U.S. National Library of Medicine shows that OSA is a frequent occurrence during childhood, with a median incidence of about 10% among preschool and school-aged children.

MedTech bigwig ResMed Inc. (RMD - Free Report) is one of the key players in the sleep apnea devices market. The company offers devices like AirSense 10 Elite, AirSense 10 AutoSet and AirCurve 10 CS PaceWave which deserve a special mention here.

Meanwhile, the Zacks Consensus Estimate for the company’s current-year earnings is pegged at $2.90, reflecting growth of 18.4% from last year.

Masimo Corporation Price and Consensus

 

Masimo Corporation Price and Consensus | Masimo Corporation Quote

We believe developments such as these will help Masimo survive cutthroat competition from bigwigs like Intuitive Surgical (ISRG - Free Report) and Inogen, Inc. (INGN - Free Report) . Intuitive Surgical’s robot-based da Vinci surgical system enables minimally-invasive surgery that reduces trauma associated with open surgery. The company has a market cap of $59.26 billion.

Inogen’s direct-to-customer business model has helped it gain a leading position in the oxygen therapy market. The company has a market cap of $4.85 billion.

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