Masimo Corporation (MASI Quick QuoteMASI - Free Report) , on Monday, announced that France-based Saint-Denis Hospital Center will be adopting the use of its SafetyNet cloud-based telemonitoring platform as part of an experimental mobile neonatology unit aimed at facilitating earlier discharge of premature newborns from the ICU to the home. Launched in February, the project is expected to allow vulnerable neonates to return home safely while remaining under the close supervision of the hospital.

Although the deal with Saint-Denis Hospital Center is likely to be beneficial for MASI’s top-line growth going forward, the stock plunged as it continues its month-long downtrend amid uncertainty related to control of the company’s board following a proxy vote in the upcoming Annual Meeting of Stockholders to be held on Sept. 19, 2024.

The latest adoption of Masimo’s SafetyNet is expected to significantly strengthen its remote patient monitoring business across the nation.

Significance of Adoption of MASI’s SafetyNet

Per the company, Masimo SafetyNet is expected to offer a streamlined approach to remote patient management that can be scaled and personalized to each patient’s unique care needs. The SafetyNet offers wireless continuous monitoring and spot-check devices with an easy-to-use pulse oximetry sensor and an intuitive smartphone application. Health data from the sensor helps in providing customizable CarePrograms with symptom reporting and a secure in-hospital clinical portal that allows care teams to keep watch over a large volume of patients and prioritize care escalation.

Per the current general rule, neonatology services do not allow premature babies to return home before the end of 36 weeks of corrected age. Masimo believes that its SafetyNet may help make it possible to secure an earlier return home, serving as a relay between hospital staff and families and providing comprehensive support for premature babies in their first few weeks of life. Additionally, the success of this program could lead to the deployment of Masimo SafetyNet in other care areas, particularly in pediatric care, including home patient management of various conditions.

Saint Denis’ management believes that using Masimo SafetyNet will likely enable premature newborns to be in a secure home environment equivalent to hospital-grade monitoring quality. The addition of the technology will serve as an opportunity to put the premature neonate back in the family.

Masimo’s Industry Prospects

Per a report by MarketsandMarkets, the global patient monitoring devices market is anticipated to reach from $48.5 billion in 2024 to $71.1 billion by 2029 at a CAGR of 8%. Factors like the rising burden of chronic diseases due to lifestyle changes, growth in the elderly population, increasing preference for home and remote monitoring and the ease of use of portable devices are expected to drive the market.

Given the market potential, the latest product adoption is likely to provide a significant boost to Masimo’s business.

MASI’s Notable Developments

Last month, Masimo launched a partnership with March of Dimes to support new parents with babies in the Neonatal Intensive Care Unit (NICU). Through this partnership, Masimo will support March of Dimes’ NICU Family Support program, which helps over 50,000 families nationwide as they navigate the NICU experience and the transition from hospital to home.

The same month, Masimo received the FDA’s 510(k) clearance for its W1 medical watch. The approval allows the watch to be integrated with the Masimo SafetyNet comprehensive telemonitoring solution.

Also, in August, Masimo reported its second-quarter 2024 results, wherein it registered an uptick in consolidated revenues and Healthcare revenues. On the earnings call, Masimo’s management confirmed that it saw strong demand for Masimo sensors due to the combination of strong hospital conversions over the past few years, normalization of installations, and rising hospital admissions after a tumultuous post-COVID environment.

Masimo’s Share Price Performance

Shares of the company have gained 5.9% in the past year compared with the industry’s 13.9% rise and the S&P 500's 21.2% growth.

Image Source: Zacks Investment Research

MASI’s Zacks Rank & Other Key Picks

Currently, Masimo sports a Zacks Rank #1 (Strong Buy).

A few other top-ranked stocks in the broader medical space are DaVita Inc. (DVA Quick QuoteDVA - Free Report) , Quest Diagnostics Incorporated (DGX Quick QuoteDGX - Free Report) and Boston Scientific Corporation (BSX Quick QuoteBSX - Free Report) .

DaVita, flaunting a Zacks Rank #1 at present, has an estimated long-term growth rate of 17.5%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 24.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita’s shares have gained 56.1% compared with the industry’s 26.3% rise in the past year.

Quest Diagnostics, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 6.2%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average being 3.3%.

Quest Diagnostics has gained 21.8% compared with the industry’s 26.3% rise in the past year.

Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.6%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.

Boston Scientific’s shares have rallied 51.5% compared with the industry’s 16.9% rise in the past year.