IRVINE, Calif. - Masimo (NASDAQ:MASI) has announced the FDA 510(k) clearance of its Masimo W1® medical watch for connectivity with the Masimo SafetyNet® telemonitoring solution. The clearance enables the integration of the device with the healthcare provider's remote monitoring platform, facilitating continuous patient data relay to caregivers.
The Masimo W1®, which received initial FDA clearance last year, is the first medical watch that provides continuous oxygen saturation (SpO2) and pulse rate (PR) monitoring for both over-the-counter and prescription use in various settings, including homes and hospitals.
The watch, paired with Masimo SafetyNet, offers a comprehensive monitoring solution that allows caregivers to receive custom notifications and review patient data through the app and web-based clinician portal.
According to Joe Kiani, Founder and CEO of Masimo, this development marks a significant milestone in improving health outcomes by enabling caregivers to monitor patients remotely, especially in challenging care situations. The integration of the Masimo W1® with Masimo SafetyNet is seen as a step towards more predictive and proactive healthcare models.
The watch utilizes the Masimo MW-1 sensor, which incorporates advanced pulse oximetry and Pulse CO-Oximetry technology, providing high-resolution data on SpO2, PR, perfusion index, and heart rate from an ECG. With Bluetooth connectivity, patients can now use the Masimo SafetyNet app to input additional symptoms, conduct virtual visits, and access educational resources.
Clinicians can access trended patient data and receive notifications through the Masimo SafetyNet clinician portal, aiding in patient management beyond hospital settings. The solution also supports data sharing with family members or other caregivers, who can receive customized updates on the patient's condition.
The Masimo SafetyNet cloud ensures secure data transmission and storage, adhering to hospital standards for privacy and security. The cloud service provides clinicians with access to patient data and analytics, enhancing clinical insights and supporting population health management.
Masimo SafetyNet connects with other wearables and spot-check devices, expanding its telemonitoring capabilities. The medical watch and the integrated sensor module are indicated for adult use in various care facilities.
This news is based on a press release statement from Masimo.
In other recent news, Masimo Corporation has reported significant developments. The company's second-quarter revenue announcement of $496 million matched its preliminary figures, with the gross margin percentage and adjusted earnings per share exceeding both Wall Street expectations and the company's own guidance.
The success of the healthcare division, which reported revenues of $344 million, a 22% year-over-year increase, was a key factor. However, non-healthcare revenue experienced a decline, posting $152 million.
In analyst notes, Piper Sandler raised Masimo's shares target to $165 from $160, maintaining an Overweight rating. Stifel and BTIG maintained a Buy rating, with Stifel reiterating a $170 price target and BTIG a $166 target. These updates reflect the operational improvements within Masimo's healthcare segment and the potential for a higher valuation of the company's healthcare business.
In other company news, Masimo is in active discussions to sell a majority stake in its consumer business, potentially valued between $850 million to $950 million. This development led to Masimo raising its guidance for healthcare revenues and non-GAAP EPS.
Additionally, Institutional Shareholder Services (ISS) has advised shareholders of Masimo to vote for the election of two director candidates put forward by Politan, an activist investment firm. These are the recent developments within Masimo Corporation.
InvestingPro Insights
As Masimo (NASDAQ:MASI) continues to innovate in the medical technology space with the integration of its Masimo W1® watch and Masimo SafetyNet® telemonitoring solution, investors and industry watchers are keenly observing the company's financial health and market performance. According to real-time data from InvestingPro, Masimo boasts a market capitalization of $6.75 billion. This valuation reflects the company's position in the market and investor confidence in its growth trajectory.
InvestingPro Tips highlight that Masimo is expected to see net income growth this year, which could be indicative of the company's successful product launches and market penetration. Additionally, Masimo has demonstrated a significant return over the last week, with a 21.07% price total return, showcasing a strong short-term performance that might interest investors looking for momentum in their portfolios. These insights, along with over twelve additional tips available on InvestingPro, provide a detailed analysis of Masimo's financial outlook.
Financial metrics further reveal that Masimo is trading at a high earnings multiple, with a P/E ratio of 84.5, suggesting that investors are willing to pay a premium for its shares based on future earnings prospects. The company's strong return over the last month, at 13.32%, could be a reflection of investor optimism following recent FDA clearances and advancements in their product offerings. Masimo's commitment to innovation and its ability to maintain a competitive edge in medical technology are critical factors that contribute to its valuation and market performance.
For investors seeking more in-depth analysis and additional InvestingPro Tips, they can explore the comprehensive insights provided at https://www.investing.com/pro/MASI, which include metrics such as revenue growth, debt levels, and valuation multiples.
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