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New Study Favors Masimo's (MASI) Pulse Oximetry to Screen CCHD

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Zacks Equity Research
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Masimo Corporation MASI recently announced the publication of the results of a prospective study in the Sri Lanka Journal of Child Health, demonstrating the efficacy of using Masimo Signal Extraction Technology (“SET”) pulse oximetry. The study was conducted by researchers in Colombo, Sri Lanka and assessed the efficiency of a pulse oximetry-based critical congenital heart disease (“CCHD”) newborn screening strategy using the SET pulse oximetry.

Per the researchers associated with the study, due to the availability of lesser number of studies on pulse oximetry screening in developing countries, the former focused on the utility of such a screening strategy in their local setting.

For investors’ note, Radical-7 Pulse CO-Oximeters with Masimo SET pulse oximetry were used to measure pre-ductal and post-ductal oxygen saturation levels in the newborns.

With the latest positive study outcome, Masimo’s SET pulse oximetry portfolio is likely to get a significant boost on a global scale.

Significance of the Study Outcome

Per the study, pulse oximetry (a simple non-invasive, cost-effective, feasible and reliable test) was found to have higher CCHD screening sensitivity than physical examination. Further, the combination of the two methods (pulse oximetry screening and physical examination) led to the detection of all cases of CCHD in the study cohort. Thus, it has been advised that combination of the two methods be implemented as a basic routine at discharge for every newborn in maternity units across the island country.

It should be noted in this regard that till date nine other studies about CCHD screening have been published, all of which have used Masimo SET with positive conclusions.

Industry Prospects

Per a report by Grand View Research, the global pulse oximeter market was valued at $2.3 billion in 2020 and is expected to expand at a CAGR of 6.4% from 2021 to 2028. Factors like rising awareness regarding application of pulse oximeters in COVID-19 management and the increasing prevalence of target diseases are expected to drive the market.

Given the market potential, the favorable study outcome is expected to significantly boost Masimo’s business worldwide.

Recent Developments

Of late, Masimo has been witnessing few developments across its businesses.

The company, this month, announced favorable findings of an observational retrospective study about the Masimo EMMA Portable Capnograph. The study, which was published in Pediatrics International, supports the use of EMMA for evaluation of respiratory conditions in children with tracheostomy (surgically created opening in the windpipe to aid in breathing).

Further, in March, Masimo announced new study results that favor its SET pulse oximetry's ability to measure during motion and low perfusion, which has helped in improving care for newborns, neonates and pediatric patients.

Also in March, the company announced receipt of the CE marking for the Rad-G with Temperature, which is a handheld device offering SET pulse oximetry, respiration rate from the pleth and other key parameters along with clinical-grade, non-contact infrared thermometry.

Masimo announced the U.S. introduction of softFlow, which is available on the softFlow 50, in February. Notably, the therapy is an innovative pulmonary care therapy providing nasal high-flow warmed and humidified respiratory gases to spontaneously breathing patients.

Also in February, the company announced the full market release of SafetyNet-OPEN, a web and mobile app solution that helps various organizations to screen, trace and manage users amid COVID-19 and other infectious diseases, such as seasonal flu.

Price Performance

Shares of the company have gained 48% in the past year compared with the industry’s 50.4% rise and the S&P 500’s 62.8% growth.

Zacks Rank & Key Picks

Currently, Masimo carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Hologic, Inc. HOLX, IDEXX Laboratories, Inc. IDXX and Abbott Laboratories ABT.

Hologic’s long-term earnings growth rate is estimated at 15.4%. The company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

IDEXX’s long-term earnings growth rate is estimated at 15.8%. It currently carries a Zacks Rank #2.

Abbott’s long-term earnings growth rate is estimated at 14.1%. The company presently carries a Zacks Rank #2.

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