Masimo Corp., an Irvine maker of non-invasive medical devices, said it may separate its consumer business.
Separately, activist shareholder Politan Capital Management is seeking two more seats on the board of Masimo, marking its second proxy battle at the health-care technology company in as many years.
Shares rose 4.2% to $140.54 and a $7.4 billion market cap (NYSE: MASI). The company also reaffirmed its guidance for the first quarter and the year.
Masimo expects that the separation – as soon as feasible — will include its consumer audio and consumer health products, including the Stork baby monitor and the Freedom smart watch and band. Masimo will retain its professional healthcare and telehealth products.
Masimo expects that this will improve the profitability of the healthcare business. Joe Kiani is expected to remain Chairman and CEO of Masimo and to be named chairman of the newly created company.
“I proposed a separation of the consumer business in January and the board has agreed to move forward,” Kiani said in a statement. “”We have unique and necessary technologies to make what I’ve been calling 22nd Century healthcare happen in the next few years.”
For a detailed analysis of the proposal, see the April 1st edition of the Business Journal.
