Published Date : Nov 24, 2015
Masimo ($MASI) and Mindray Medical ($MR) are placing their legal battle over the pulse oximeter technology to rest, with all the firms willing to dismiss their outstanding lawsuit against each other in the U.S. and China. As a part of the settlement, Mindray will be paying $25 mn by January 2016. Shenzhen, China-based Mindray has planned to buy pulse oximeter technology components for the patient monitoring devices that are sold primarily in the United States and Canada. It is expected that Mindray will take around $15.3 mn quarter-four charge of the settlement.
Earlier in 2012, Masimo sued Mindray in the United States district court for the Central District of California for trespassing nine patents related to pulse sensors and oximeters. Masimo had also claimed that a purchase and license agreement was breached by Mindray in which the company had promised to promote Masimo’s pulse oximeter technology. Later, Masimo asked for all the damages and a unique injection to prevent Mindray from selling its pulse sensors and oximeters. Earlier in November 2015, the device-maker agreed for a $3.3 bn management buyout of the American depository receipts that represented a 1.9% to its price.
Mindray has planned to borrow $2 bn from 2 Chinese banks to make the buyout possible. This is supposed to be one big debt deal. Currently, Masimo is shaping-up with its pulse oximeter technology. The company received an FDA OK in October 2015, after scoring a CE for its product, for its fingertip pulse oximeter medical device called MightySatRx. The MightySatRx fingertip pulse oximeter tracks pulse rate and arterial oxygen saturation (SpO2) and can also display results through devices such as IPhones. As they are more portable and lighter in weight and are available with latest technology specifications, IPhones have become a potential selling devices for the hospitals.