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Masimo's (MASI) Latest Watch to Improve Patient Outcomes

Masimo Corporation MASI recently announced the full-market release of the Masimo W1 health watch for consumer use. In the same press release, the company also announced the availability of Masimo W1 with Hydration Index (Hi) in limited market release and the launch of Personal SafetyNet (a paid subscription service integrated within the Masimo Health app).

Additionally, Masimo is also entering the general launch phase of a medical version of Masimo W1 for use in medical applications outside the United States, with extra measurement capabilities such as spot-check electrocardiogram and atrial fibrillation detection, among others.

It is worth mentioning that Masimo W1 for use in medical applications is currently pending the FDA’s clearance in the United States.

The Masimo W1 for consumers will be available for direct-to-consumer purchase via the company’s online portal, starting immediately.

The latest launches are expected to significantly strengthen Masimo’s remote patient monitoring (RPM) business across the world.

Significance of the Launches

The Masimo W1 health watch is expected to offer accurate, continuous measurements and insightful health data in a personal, lifestyle-friendly, wrist-worn wearable format. It provides data based on continuous monitoring of oxygen saturation and pulse rate, among others. In the limited market release version, data regarding Hi is also provided. The watch pairs with a secure Bluetooth to the Masimo Health smartphone app to provide continuous health data. As part of a future update, Masimo W1 will also be able to measure temperature and VO2Max and provide round-the-clock health data tracking and oversight.

The Personal SafetyNet gives users access to advanced reporting tools to review their physiological status over time. It also allows the users to share data with their care providers, besides allowing them to set up virtual visits with doctors.

Medical Masimo W1 is expected to benefit from Masimo’s proficiency in hospital connectivity and hospital automation. It will also be available for use in telehealth and telemonitoring applications via Masimo SafetyNet and Personal SafetyNet for healthcare providers and payers, as well as for individual use. Masimo W1 will likely be a convenient and reliable remote monitoring and telehealth solution for patients taking opioids to reduce pain or recovering at home after surgery or illness and patients with chronic conditions.

Per management, Masimo W1 is expected to improve patient outcomes based on positive feedback for the watch during the limited market release phase.

Industry Prospects

Per a report by Grand View Research, the global RPM system market was valued at $1,282.0 million in 2021 and is anticipated to reach $6.7 billion by 2030 at a CAGR of 20.2%. Factors like the recent pandemic, increasing geriatric population and cost-effectiveness of the treatment are expected to drive the market.

Given the market potential, the recent full-market consumer release is likely to provide a significant boost to Masimo’s business globally.

Notable Developments

Last month, Masimo reported its second-quarter 2022 results, wherein it saw solid uptick in the top line and its healthcare business. Robust order shipments and expansion of the company’s installed base were also recorded during the reported quarter.

In July, Masimo announced positive findings from a randomized controlled trial in which researchers assessed the ability of electroencephalogram-guided anesthesia, using Masimo SedLine brain function monitoring, to reduce the amount of the drug sevoflurane needed to maintain anesthesia in pediatric patients undergoing minor surgery. The findings were published in the Journal of Clinical Anesthesia.

Price Performance

Shares of the company have lost 47.9% in the past year compared with the industry’s 33.7% fall and the S&P 500's 14.6% decline.

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Zacks Rank & Key Picks

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

Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, ShockWave Medical, Inc. SWAV and McKesson Corporation MCK.

AMN Healthcare, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.7%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare has lost 13.5% compared with the industry’s 38.9% fall in the past year.

ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.

ShockWave Medical has gained 28.8% against the industry’s 33.7% fall over the past year.

McKesson, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 9.9%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 13%.

McKesson has gained 76.4% against the industry’s 15.2% fall over the past year.

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