Masimo Wins Antitrust Lawsuit Against Tyco

IRVINE, Calif., March 23 /PRNewswire-FirstCall/ -- Masimo, the inventor and leader of read-through motion and low perfusion pulse oximetry, today announced that a federal court jury in Los Angeles has found that Tyco Healthcare violated the antitrust laws through anticompetitive business practices specifically related to the sale of its Nellcor pulse oximetry products. After a four-week trial, the jury found that Tyco had unlawfully maintained monopoly power, and that Tyco’s sole-source agreements, bundling of unrelated products, market-share based compliance pricing contracts and co-marketing agreements with original equipment manufacturers were unlawful restraints of trade and exclusionary dealing arrangements. The jury awarded Masimo $140 million in damages.

Joe E. Kiani, Founder and CEO of Masimo stated, “We sued Tyco to seek relief from Tyco’s actions that prevented purchasing decisions from being made based on merits of the products. We are gratified that the jury found in our favor. Today, my hope is that this verdict will do more than simply open competition in the pulse oximetry market, but also send a strong message that medical product sale and purchases should be based on each individual product’s ability to help clinicians improve patient care. We hope this verdict will benefit patients and our nation’s healthcare system by fostering vigorous competition, thereby promoting innovative, cost-effective technologies.”

Mr. Kiani continued, “Masimo’s mission, since its founding, has been to improve patient care while at the same time reducing cost. With the advent of Signal Extraction Technology, Masimo raised the performance bar for pulse oximeters. Not surprisingly, at the small number of hospitals where Tyco’s practices did not succeed in excluding Masimo from competing, Masimo’s presence also resulted in lower prices for those hospitals.”

About Masimo

Masimo, founded in 1989, is the inventor and leader of Signal Extraction Technology for the non-invasive monitoring of vital signs. Masimo Signal Extraction Technology, or Masimo SET, represents the standard of care for pulse oximeters. With its worldwide introduction in 1998, Masimo SET overcame data dropouts, false alarms and inaccurate measurements due to patient motion, low perfusion and other challenging conditions. Over 100 clinical studies support the conclusion that Masimo SET is the most effective pulse oximeter in the world. In prestigious medical journals, Masimo SET has been credited for improving the process of care.

With the advent of Rainbow Technology, Masimo ushers in a new era for noninvasive monitoring, where patients at risk of respiratory and cardiac complications, carbon monoxide poisoning and other life threatening diseases can be safely, noninvasively and accurately monitored with Pulse CO-Oximetry. Masimo is headquartered in Irvine, California. Additional information about Masimo and its products can be found at http://www.masimo.com/.

Masimo, Signal Extraction Technology, SET and LNOP are registered trademarks of Masimo Corporation. Signal Extraction is a trademark of Masimo Corporation. Rainbow and Pulse CO-Oximetry are trademarks of Masimo Laboratories.

Masimo

CONTACT: Brad Langdale of Masimo Corporation, +1-949-297-7009,blangdale@masimo.com