Masimo’s Blood Monitoring Device Praised by Analyst

A Lazard Capital Markets LLC analyst says Masimo Corp.’s new hemoglobin monitoring system could pay off for the Irvine medical device maker.

With the device, doctors can continuously monitor hemoglobin, which carries oxygen, without drawing blood. The Food and Drug Administration cleared the device, which is part of Masimo’s Rainbow SET platform line, and Masimo has rolled it out on a limited basis.

“We believe this technology has the potential to change medicine,” said Sean Lavin, a Lazard analyst, in a note to clients.

Masimo’s device allows doctors and other clinicians to receive non-invasive and continuous hemoglobin measurements within seconds, Lavin wrote. Traditionally, hemoglobin monitoring has required multiple steps, including blood collection, transferring samples to labs, analysis and reporting of the results.

Continuous hemoglobin monitoring is especially important for patients who are prone to blood loss, such as those in trauma wards and operating rooms, according to the company.

Lavin pegged continuous hemoglobin monitoring as a $1 billion market opportunity in the U.S. alone. More than 350 million invasive hemoglobin tests are administered domestically each year, he wrote.

A doctor survey pointed toward eventual widespread adoption of Masimo’s device because nearly 90% of neonatologists, surgeons, cardiac surgeons and anesthesiologists who responded indicated they saw some use for non-invasive hemoglobin monitoring, Lavin said in his note.

Continuous hemoglobin monitoring, according to Lavin, should drive sales of Masimo’s Rainbow SET business to $450 million by 2012. Rainbow SET accounted for $6.1 million of sales in 2007.

Masimo also received regulatory clearance for disposable adhesive sensors that can continuously monitor a patient’s hemoglobin and oxygen content, the company said.

Ovarian Cancer Drug

A University of California, Irvine, professor has found that women who have recurrent ovarian cancer can be helped by an experimental drug that’s already noted for its ability to fight other cancers.

Trabectedin, which is sold by Johnson