Global provider of innovative non-invasive monitoring technologies, Masimo Corp MASI recently announced the launch of a new series of its Patient SafetyNet System – Patient SafetyNet Series 5000 – at the HIMSS Annual Conference and Exhibition in Chicago.
This series of Patient SafetyNet, along with Iris Connectivity and MyView through the Root patient monitoring and connectivity platform, offers a new level of interoperability designed to enhance clinician workflows and reduce the cost of care from operating rooms to medical-surgical units.
Masimo’s Patient SafetyNet is a remote monitoring and clinician notification system. The latest series with the incorporation of Iris allows the Root platform to display near real-time data from all devices connected to the patient, thus providing a single unified dashboard of patient information. Alarms and alerts for all devices can be seamlessly forwarded to clinicians, who can quickly assess a patient’s status thus allowing for faster clinical decisions.
Additionally, MyView – which is a wireless, presence-detection system – enables clinicians to automatically display a patient’s customized clinical profile on Masimo devices, such as Root, Radical-7, and the Patient SafetyNet View Station, thus optimizing their workflow.
Notably, Masimo’s Patient SafetyNet was instituted on a postsurigcal orthopedic unit at Dartmouth Hitchcock Medical Center in 2007 and is clinically proven to help improve outcomes. Besides demonstrating significant reductions in rapid response team activations and ICU transfers, the system also helped generating substantial cost savings. Based on the results in this single unit, Dartmouth expanded the system to all seven of its medical-surgical units.
In our opinion, since the Patient SafetyNet is integrated with other Masimo devices such as Root and Radical-7, adoption of the same in hospitals and healthcare facilities will automatically increase demand for the company’s other products.
Moreover, we believe that by adding additional features and enhancing its existing systems and products, Masimo will play an important role in automating patient care and reducing healthcare costs.
In 2014, Masimo introduced a variety of new innovative products, including fully featured Root patient monitoring and connectivity platform, Radius-7 Pulse CO-Oximeter, iSpO2 mobile phone oximeter, rainbow DCI mini-SpHb sensor for infants and small children, to name a few. We believe that Masimo’s expanding product portfolio will improve the company’s growth prospects over the long term.
However, reluctance of hospitals in buying new technology is a major headwind. Moreover, the monitoring products market remains quite competitive with a lot of companies vying for substantial market share.
Meanwhile, unfavorable foreign exchange remains a concern for the company’s overall results. Management estimates unfavorable foreign exchange to reduce revenues by $20 million and EPS by 15 cents in 2015.
Stocks to Consider
Currently, Masimo carries a Zacks Rank #4 (Sell). Better-ranked stocks in the medical instruments industry include Inogen INGN, Abiomed ABMD and Fluidigm Corp FLDM. While Inogen sports a Zacks Rank #1 (Strong Buy), both Abiomed and Fluidigm carry a Zacks Rank #2 (Buy).
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