Libya First to Adopt Pronto-7 - Analyst Blog
February 04 2013 - 10:00AM
Zacks
Masimo Corporation
(MASI), a leader in non-invasive monitoring technology, recently
revealed that Libya is the first nation to start utilizing the
Masimo Pronto-7 to check prospective blood donors for poor
hemoglobin count at large blood collection centers. The Pronto-7 is
a hemoglobin monitoring device which is both non-invasive and held
by hand.
The Pronto-7 fits into the palm of
a hand and provides a ready mechanism for monitoring hemoglobin,
perfusion index, pulse rate and SpO2 in less than 60 seconds. The
Pronto-7 does not rely on needles or lab tests.
People in the Middle East
frequently donate blood prior to surgery in the family or among
friends. Thus far, before the adoption of Pronto-7, blood
collection centers in Libya would rely on invasive withdrawals of
blood to test donors for anemia. According to a minister in the
Libyan government, the country’s adoption of Pronto-7 is an example
of its commitment to quality health care.
Masimo is a market leader in the
pulse oximetry monitoring equipment industry. The company’s
prospects are encouraging, given the sizeable global market
opportunity, adoption of pulse oximetry in non-critical areas of
the hospital and growing barriers to entry due to additional
non-invasive parameters.
While Masimo’s patented SET
offering remains its mainstay, the rainbow measurements represent
another growth driver in hospital care. However, the company’s
reliance on third-party providers like OEMs for a part of its
business and customer concentration raises concern. Additionally,
we remain concerned about Masimo’s reliance on group purchasing
organizations for the sale of its pulse oximetry products to
hospitals in the domestic market.
Shipments have been growing at a
steady rate fueled by new contracts. However, the renewal of the
royalty agreement with Covidien (COV) provides
little or no benefit due to lower rates.
We also note Covidien’s effort to
expand its oximetry and monitoring products portfolio. In late
2012, the company won U.S. Food and Drug Administration (FDA)
510(k) approval as well as European Economic Area (EEA) CE Mark
clearance for its Nellcor Bedside Respiratory Patient Monitoring
system.
Masimo carries a Zacks Rank #4,
which translates into a short-term Sell rating. Cantel
Medical Corp. (CMN) and Cyberonics Inc.
(CYBX) are Zacks Rank #1 (Strong Buy) stocks, which are expected to
do well.
CANTEL MED CORP (CMN): Free Stock Analysis Report
COVIDIEN PLC (COV): Free Stock Analysis Report
CYBERONICS INC (CYBX): Free Stock Analysis Report
MASIMO CORP (MASI): Free Stock Analysis Report
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