Cochlear Seeks OK for Study - Looks to Broaden CI Candidacy Criteria

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The Sydney Morning Herald, Australia - May 28, 2010

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Cochlear eyes more custom

By ELI GREENBLAT

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Bionic-ear implant company Cochlear is reportedly seeking consent from the

US Food & Drug Administration to conduct a major multi-implant centre study

to examine a broader criteria for hearing loss and word recognition for its

range of Cochlear implants.

It is believed that if the powerful FDA agrees to the study, due later this

year, it could represent a key force in expanding the number of people able

to be reimbursed for the company's implant.

UBS healthcare analyst Goodsall said with more than 65 per cent

penetration among infants in the developed world, Cochlear's future earnings

growth would be more dependent upon adult patients.

Advertisement: Story continues below " The population experiencing hearing

loss increases materially at each step-down on the hearing spectrum, " Mr

Goodsall said.

" Currently adults with sentence recognition scores of 30 per cent or less

qualify for an implant, but a new more complex 'sentence' is being used,

with higher 'failure' rates. A growing body of evidence is expanding the

criteria, often to those with some residual hearing, who can achieve better

hearing outcomes with an implant. "

Mr Goodsall said any study could take 12 months to conduct, with approval

taking another 12 months.

Earlier this year Cochlear posted an interim net profit of $75.2 million, up

8 per cent, with earnings per share of $1.34, up 7 per cent for the period.

The result was based on total revenue of $347.6 million, down 2 per cent -

although sales were 4 per cent stronger in constant currency terms (using

the same exchange rate recorded in the first half of 2008-09).

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