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Masimo's (MASI) Rad-G Clinical Study Trial Outcome Favorable

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  • MASI
  • LH
  • CHE
  • MEDP

Masimo Corporation MASI recently announced the findings of a study published in Clinical Medicine Insights: Pediatrics, demonstrating the experience using the Masimo Rad-G Pulse Oximeter. The study evaluated that Rad-G Pulse Oximeter supports health providers in detecting and managing pneumonia in more than 4,500 children less than five years with symptoms of acute respiratory infection (ARI).

It is important to mention that the Rad-G Pulse Oximeter device is simple to use and maintain, even in low-resource settings, and has the ability to precisely and reliably measure oxygen saturation (SpO2) and respiration rate (RR). It can potentially transform the identification and management of pneumonia by healthcare workers, even those who may not be medical doctors.

Masimo’s products have been a subject of various favorable studies over the past few months. The latest positive study outcome is an addition to the list, which can drive the company’s product revenues.

More on the Study

Per the study authors, pneumonia is one of the most common causes of ARI in children, resulting in 15% of child deaths worldwide, with India accounting for 20% of the death count. In low-resource health settings, where access to diagnostic aids is limited, health workers often depend on manual counts of respiratory rate to inform ARI management decisions.

In the latest trial, researchers evaluated SpO2 and respiratory rate (in accordance with WHO guidelines for effective pneumonia management) measured by Rad-G.

The findings demonstrated that Rad-G Pulse Oximeter was "highly acceptable among health workers" and helped the "timely classification and treatment" of pneumonia. This in turn aids researchers to achieve correct case management in more than 91% of cases of ARI while minimizing the unnecessary use of antibiotics.

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Per researchers, the pulse oximeter implementation was found to fit well within a primary healthcare level. The sturdiness and ease of usability of the device is the biggest advantage observed. The implementation demonstrates that a systematic approach to diagnosing pneumonia is likely to boost case management.

Industry Prospects

Per a report by Grand View Research, the global pulse oximeter market size was valued at $2.30 billion in 2020 and is expected to see a CAGR of 6.4%. Rising awareness regarding applications of pulse oximeters in COVID-19 management and the increasing prevalence of target diseases are driving the market.

Recent Developments

In November 2021, Masimo announced the findings of a prospective study published in Frontiers in Neurology. The researchers found a significantly reduced risk of postoperative delirium, using a combination of SedLine’s Patient State Index (PSi) and Density Spectral Array (DSA) to guide anesthesia during the procedure, and concluded that patients "may benefit from the monitoring of multiple EEG parameters during surgery.”

In the same month, Masimo introduced Dual SET Pulse Oximetry for Root -- a highly versatile patient monitoring and connectivity hub. The first application of Dual SET Oximetry marks a major advancement to Masimo SET-guided critical congenital heart disease (CCHD) screening, with the CE marking and European launch of the Masimo SET MOC-9 module along with the addition of the Eve CCHD Newborn Screening Application for Root.

Price Performance

Shares of the company have gained 13.9% in a year compared with the industry’s rise of 8.2%.

Zacks Rank and Stocks to Consider

Masimo currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the broader medical space are Chemed Corporation CHE, Laboratory Corporation of America Holdings, or LabCorp LH and Medpace Holdings, Inc. MEDP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Chemed has a long-term earnings growth rate of 7.7%. The company surpassed earnings per share (EPS) estimates in three of the trailing four quarters and missed in one, delivering a surprise of 5.6%, on average. Chemed currently carries a Zacks Rank #2 (Buy).

Chemed has outperformed its industry over the past year. CHE has gained 3.7% against a 35.6% industry decline.

LabCorp reported third-quarter 2021 adjusted EPS of $6.82, which surpassed the Zacks Consensus Estimate by 42.9%. Revenues of $4.06 billion outpaced the Zacks Consensus Estimate by 13.4%. LabCorp currently carries a Zacks Rank #2.

LabCorp has an estimated long-term growth rate of 10.6%. LH surpassed estimates in the trailing four quarters, the average surprise being 25.7%.

Medpace reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%. Medpace currently carries a Zacks Rank #1.

Medpace has an estimated long-term growth rate of 16.4%. MEDP surpassed estimates in the trailing four quarters, the average surprise being 11.9%.


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Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report

Masimo Corporation (MASI) : Free Stock Analysis Report

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Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report

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