August 16, 2022 – Activist investor Politan Capital Management LP has a 9% stake in Masimo worth roughly $750 million, and “plans to push the medical-device company to improve its stock price following a poorly received acquisition,” according to a report from The Wall Street Journal.
Masimo, a major supplier of monitoring technologies for hospitals, reported in its second-quarter earnings that the “core healthcare revenue rose 17% from a year ago to $357 million.” Masimo shares dropped significantly in February after the company agreed to buy a consumer-technology company specializing in high-end audio equipment for around $1 billion, a surprise to investors.
Joe Kiani, Masimo’s founder and CEO, said that the move gave the company access to consumer distribution channels such as Best Buy stores, which will be useful as it rolls out its own health-focused smartwatches. He also said he saw opportunities to use Sound United’s technology in hospitals.