Masimo Corporation (NASDAQ:MASI) Q4 2023 Earnings Call Transcript

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Unidentified Analyst: Okay. Thanks a lot.

Joe Kiani: Thank you. I think we have time for one more question.

Operator: Okay. And our last question comes from the line of Vik Chopra from Wells Fargo. Please go ahead.

Dino Weinstock: Hi. This is Dino Weinstock on for Vik Chopra. So you recently received a 510(k) approval for an over-the-counter version of MightySat, the fingertip pulse oximeter. Could you talk about how your launch plans for MightySat might address the market opportunity?

Joe Kiani: Yes. Thanks for asking it. We just got that clearance in Q1 that’s why it wasn’t part of my statements for last year. But yes, we’re really excited about that, because right now people can’t differentiate between a fingertip pulse oximeter that they can rely on and ones that they can’t. So were competing with $20 products at a $200 price tag. So, a lot of people think, well, why should I buy the $200 product? And now that we have FDA clearance as a medical product, for MightySat OTC, we have plans to hopefully make it available across all the major pharmacies. And obviously, online, you can buy it right now online. But the real I think push will be in the pharmacies. So I know at one point, when we were expecting to FDA clearance sooner than we got it, there was a major pharmacy system that wanted to provide it. And so we’re just picking up that conversation again. And hopefully in 2024, we will successfully deploy MightySat to all the major pharmacies.

Unidentified Analyst: Thank you. That’s helpful. And then on the status of the Apple litigation is there any update you could provide?

Joe Kiani: Well, we were happy that we got our injunction as a patent owner and a company that makes products that are competing in that space. That’s ultimately what we wanted. We hope in the future to broaden our injunction hopefully, beyond just SpO2 as well as beyond the US and hopefully get our damages for the infringement. So those cases are pending and we hope to have a trade secret case and patent case in California this year. The court in California, just ruled that they’re still pausing our patent cases in California because Apple is doing a hail Mary with a federal court to try to have them hear over here what they lost. Assuming they lose that, which we think they will hopefully, we’ll have the patent and the trade secret case together here in California before the year-end.

And in Delaware, we are making great progress. It’s gone a lot faster than we expected. We do have a new federal judge. Magistrate, has become the judge in that case. She has a very busy schedule. So while we thought for sure we’re going to be in trial in Delaware in 2024, we’re not certain of that at this point. We might but we might not. It might push to 2025.

Unidentified Analyst: Thank you.

Joe Kiani: Thank you so much everyone for your time. We appreciate it. We feel like we’re back. We’re looking forward to reporting to you our Q1 results soon. And hopefully, it’s going to be a great year. Thank you so much.

Operator: This concludes today’s conference call. You may now disconnect.

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