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Masimo's Latest Buyout to Boost Respiratory Product Spectrum

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Masimo Corporation (MASI - Free Report) recently announced the acquisition of TNI medical AG, which is expected to close in the second quarter of 2020. The terms of the deal have been kept under wraps. Further, Masimo expects the transaction to be neutral to its 2020 bottom line. This bolsters Masimo’s foothold in the respiratory care devices market.
For investors’ notice, TNI is a German ventilation company, which produces and markets diagnostic and therapeutic equipment in the field of respiratory assistance therapy.
Last August, Masimo had announced investments in TNI, which included an option to acquire it.
How Does Masimo Stand to Gain?
With the buyout, Masimo will be adding TNI’s novel softFlow technology to its respiratory care product portfolio.
Notably, the technology is designed to provide high flow, warm and humidified respiratory gases to patients suffering from serious pulmonary conditions. The system, comprising an integrated flow generator, respiratory circuit and a patient interface, can be used in both hospitals and at home.
Moreover, the recent outbreak of COVID-19 (coronavirus) has ramped up demand for TNI’s softFlow technology. Hence, this technology will provide Masimo with additional tools to address the growing number of people affected by pulmonary diseases.
report by MarketsandMarkets projects the global respiratory care devices market to reach a worth of $31.8 billion by 2024, at a CAGR of 9.1%.
Hence, the latest move seems to be a prudent one by Masimo.
Masimo’s Respiratory Care Products
Masimo boasts a wide range of respiratory care products, which offer oxygenation monitoring and ventilation throughout the breathing cycle.
The products include Signal Extraction Technology (SET) pulse oximeters, Masimo Pulse CO-Oximeters, and respiratory acoustic sensors like RAS-45 or RAS-125c and Rad-97.
Notably, these products have been contributing significantly to the company’s top line.
Price Performance
Over the past year, shares of the Zacks Rank #2 (Buy) company rallied 23% against the industry’s 21.1% decline.
Other Key Picks
Other top-ranked companies in the broader medical sector are Stryker Corp. (SYK - Free Report) , Accuray Inc. (ARAY - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker’s long-term earnings growth is expected at 10.1%.
Accuray’s fiscal fourth-quarter earnings are expected to skyrocket 150%.
IDEXX Laboratories’ first-quarter earnings growth is projected at 6.8%.
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