Masimo Corporation (MASI), a leader in non-invasive monitoring technology, unveiled its iSpO2 pulse oximeter cable and sensor at the International CES, organized by Consumers Electronics Association (CEA) in Las Vegas. The product will be on display between January 8 and10 at the event.
The device is equipped with Measure-Through Motion and Low Perfusion Masimo SET technology and is intended for use with Apple Inc.’s (AAPL) iPhone, iPad or iPod touch with a 30-pin connector. The company had introduced the product in December 2012, marking the launch of Masimo’s first consumer product.
iSpO2 is built with the technology used in Masimo’s well-regarded line of pulse oximeters and Pulse CO-Oximeters. Masimo’s iSpO2 cable and monitor can be used on the iPhone, iPad or iPod touch to monitor blood oxygenation (SpO2), pulse rate and perfusion index measurements.
However, the technology is meant for sports and aviation uses and is not for medical use because the iSpO2 Medical (the version intended for medical use) is awaiting European CE Mark approval as well as 510(k) clearance by the U.S. Food and Drug Administration (:FDA). Following the clearance, Masimo’s iSpO2 will be supplied by the company’s distribution network.
The company’s latest technology should beef up its client base, which already includes hospitals and health systems with a sizeable footfall across the U.S. The move to display the product at the International CES is a marketing initiative by the company to popularize the product. Going forward, the higher adoption of the technology will act as a positive catalyst as Masimo’s clients continue to standardize their non-invasive monitoring technology.
Masimo estimated the global market size for pulse oximetry to be more than $1 billion in 2011. Based on the growing barriers to entry in the non-invasive parameters' product market and the widespread adoption of pulse oximetry in non-critical areas of hospital care, Masimo should tap the opportunity to accelerate its top-line growth.
However, the company’s reliance on third-party providers such as 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. The company might also faces challenges from Covidien plc’s (COV) efforts to expand its oximetry and monitoring products portfolio.
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