IRVINE - Masimo (NASDAQ:MASI) Corporation (NASDAQ: MASI), a global medical technology company, has publicly addressed what it calls "egregious and continuing misrepresentations" by Politan Capital Management and its affiliate Quentin Koffey regarding a proposed consumer joint venture (JV). The company's CEO, Joe Kiani, has stated that he will not support the JV unless there is full board consensus, including the approval of Mr. Koffey.
The dispute centers on allegations by Politan that the JV would unfairly benefit Mr. Kiani, claims that Masimo has denied. The company has clarified that the JV would not compete with Masimo's healthcare operations and that an independent law firm would oversee the license, ensuring no transfer of Masimo's trademark to the JV.
Moreover, the Masimo Board has decided not to proceed with the JV or any other separation transaction before their 2024 Annual Meeting without unanimous board approval.
Masimo has also responded to Politan's assertions regarding the independence of its directors, emphasizing that its board members are selected through a nationally recognized search firm and are not reliant on activists for their positions. In contrast, Masimo alleges that Politan's directors were handpicked by Mr. Koffey and are promised financial compensation upon election.
Highlighting its financial performance, Masimo has reported consistent revenue growth and increasing EBIT margins in the healthcare business, with aims to achieve high EBIT margins and earnings per share by 2029. The company has dismissed Politan's plan as lacking detail and credibility, while also defending its corporate spending as being lower than industry peers.
Masimo has reiterated that there is no arrangement with any third-party investor concerning the trading or voting of the company's stock, a practice known as "empty voting."
This response from Masimo Corporation is based on a press release statement and comes amid a contentious proxy battle with Politan. As the company prepares for its 2024 Annual Meeting of Stockholders, shareholders are urged to vote using the GOLD proxy card to support Masimo's future and their investment value.
InvestingPro Insights
As Masimo Corporation (NASDAQ: MASI) navigates through its public dispute with Politan Capital Management, investors and shareholders are closely monitoring the company's financial health and market performance.
According to InvestingPro data, Masimo's market capitalization stands at $5.95 billion, with a high price-to-earnings (P/E) ratio of 74.27, reflecting investor expectations of future earnings growth. The company's recent performance has shown a gross profit margin of 48.61% for the last twelve months as of Q1 2024, indicating strong profitability in its operations despite a revenue decline of 13.96% during the same period.
InvestingPro Tips highlight several key factors for investors to consider. Masimo is expected to grow its net income this year, according to analysts. However, it's important to note that six analysts have revised their earnings forecasts downwards for the upcoming period.
While Masimo's stock has experienced a downturn over the last month with a 17.49% decline, the company's liquid assets exceed its short-term obligations, providing financial stability. Moreover, Masimo does not pay a dividend to shareholders, which might be relevant for those seeking regular income from their investments.
For investors seeking deeper insights and additional analysis, there are more InvestingPro Tips available at https://www.investing.com/pro/MASI. These tips can offer further guidance on Masimo's valuation multiples and stock performance over time. Interested investors can take advantage of the special offer using coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes access to a total of 11 InvestingPro Tips for Masimo Corporation.
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