Masimo (NSDQ:MASI) said yesterday it is renewing a $1 million challenge made originally in 2013 that its SET pulse oximeter will outperform its device equivalent from competitor Nellcor, now owned by Medtronic (NYSE:MDT).
If a hospital can prove in a head-to-head comparison that Masimo’s SET pulse oximeter is inferior to Nellcor’s device, Irvine, Calif.-based Masimo will pay up to $1 million to the hospital to help them upgrade to the Nellcor devices, Masimo said.
“As a medical technology company, we believe it is our obligation to be truthful and open in our advertising because ultimately patient care is at issue. We continue to be perplexed by the misleading marketing tactics of our competitor. We are concerned that customers may be misled and we hope our guarantee will cause them to question what they are being told and evaluate the performance of the technologies for themselves,” CEO Joe Kiani said in a press release.
Masimo also released a list of claims it stated were falsely made by Nellcor’s previous owner Covidien, and posted responses to each along with its renewal of the challenge.
The challenge requires hospitals plan an upgrade with Masimo and agree to their terms and services, which include a minimum purchase of 250 SET V7 devices and detail that the comparison can only be made against Nellcor OxiMax/N-600x pulse oximetry technology, according to Masimo.
The challenge was originally laid down in 2013 when Nellcor was owned by Covidien. The challenge came on the heels of Covidien’s announcement that the FDA cleared the Nellcor pulse oximeters for diagnosing congenital heart disease in newborn babies. The new labeling for the Nellcor devices recognizes the devices for motion-tolerant screening, a newly established federal recommendation.