Masimo Corp. (Nasdaq: MASI), the Irvine-based maker of noninvasive medical monitoring equipment, will purchase the assets of Culver City-based NantHealth’s Connected Care business for $47.3 million cash.
Connected Care is a medical device that specializes in telehealth software for connecting patient data. Connected Care’s DCX device, VCX patient vitals software, and HBox were among the digital health technologies that were included in terms of the agreement.
“We believe Masimo has the best connectivity solutions, and we are delighted to have found the right home for our Connected Care business and our committed team of employees,” NantHealth Chief Executive Patrick Soon-Shiong, one of L.A.’s wealthiest business execs, said in a statement.
NantHealth wants to focus on other products, said Soon-Shiong, who is best known as the inventor of the blockbuster cancer drug Abraxane and as owner of the Los Angeles Times.
FDA OK
In other Masimo news, the company recently received FDA clearance for its neonatal pulse oximetry device, Measure-Through Motion and Low Profusion SET for infants.
The clearance guidance provided by the FDA is a steppingstone for Masimo’s patient monitoring systems for babies born prematurely. The SET, or signal extraction technology, monitoring system has been shown to reduce severe retinopathy of neonates—or damage to their retina due to lack of oxygen.
“We have long been dedicated to helping improve the lives of neonatal, infant, and pediatric patients, and this clearance significantly furthers that mission” Masimo founder and Chief Executive Joe Kiani said.
The company reported $513.4 million in cash and equivalents as of Sept. 28.
