Both companies have agreed to technology integration and will combine marketing and sales efforts in North America and certain markets in Asia and Europe. As a result of the agreement all pending lawsuits between the two companies are ended. In addition to the marketing and integration commitments, the partnership includes a cash payment of USD 300 million (275 million euro’s) by Philips to Masimo.
Philips develops patient monitoring solutions with a product portfolio such as multi-parameter bedside monitors to wearable patient monitors, combined with mobile applications and clinical decision support tools. In 2015, some 275 million patients were monitored using Philips’ patient monitoring solutions. ‘Sensor and signal processing technologies are an essential component of patient monitoring solutions’, Philips states. ‘Masimo is a prolific innovator in this field’.
In conjunction with the appropriate Philips patient monitoring platform, Masimo’s rainbow SET technology analyzes multiple wavelengths of light to accurately measure total hemoglobin, oxygen content, carboxyhemoglobin, methemoglobin and Pleth Variability Index non-invasively and continuously. Continuous monitoring of SpHb on a Philips monitor at the point of care provides clinicians with real-time visibility to changes in hemoglobin in between invasive blood samplings.
Pending lawsuits ended
As part of the business partnership agreement, Philips and Masimo have agreed to end all pending lawsuits between the two companies, which includes that Philips is released from paying the USD 467 million (approximately EUR 428 million) jury verdict that was awarded to Masimo in October, 2014.
Philips has agreed to make a USD 300 million cash payment (approximately EUR 275 million) to Masimo in the fourth quarter of 2016; and to invest in the relationship by making certain marketing and product integration commitments over the coming years.
“I am very satisfied that we have reached an agreement that is beneficial for both companies and that we have ended our legal disputes,” said Frans van Houten, CEO of Royal Philips Going forward, Philips and Masimo will completely focus on jointly delivering meaningful innovations to our customers.”