Cochlear Hopeful New Device Will Help Sales

Cochlear, widely known as one of Australia’s biggest healthcare provider, is coming up with a new hearing device that the company is confident will help with sales in the United States and improve its profit.

With a capital of $3.3 Billion, the company is banking on this new device to push its gains back, following 16% loss of its full year profit with the recent market slowdown. Net profit for Cochlear dropped from $158.1 Million to $132.6 Million, with its revenue falling to 3%. Sales in the USA also dropped to 4%.

The company does most of its business in the United States by providing for prosthetics and hearing implants. Its latest device, the Nucleus 6, has just received approval for selling not only in America, but also in Europe.

“We continued investing in key business drivers and remain confident in our ongoing growth,” according to its chief executive.

News of this latest device has analysts unnerved, even as it has improved shares by 1.4% in the closing of the trade last Tuesday.

Says one financial expert, Cochlear has to deal with competition from Advanced Bionics, which has already come up with a similar device.

“It’s likely Cochlear and Advanced Bionics will go head-to-head in the US.”

“The clinics in Europe that have both products already are seeing market share go to Advanced Bionics.”

The analyst also said that the company’s rough second half profit, as well as its rising debt, could highlight its weakness against other companies in the Europe and US.

But other analysts are saying that investors may be underestimating Cochlear, as it could bounce back from its recent difficulties.