Tuesday, February 1, 2011

Masimo (Nasdaq:MASI) Shares Soar on Covidien (NYSE:COV) Royalty Extension

News that Masimo (Nasdaq:MASI) had extended its royalty agreement with Covidien PLC (NYSE:COV) resulted in shares of the company soaring.

The extension will be for three years, and include a royalty payment from Covidien to Masimo of 7.75 percent for American sales of its pulse-oximetry products.

Pulse-oximetry devices monitor the pulse rates and oxygen saturation levels in the blood of patients.

Masimo closed Monday at $29.98, gaining $2.40, or 8.68 percent. Covidien closed at $47.47, gaining $0.39, or 0.83 percent.

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