Cochlear Limited

Cochlear Limited

Type	Public company
Founded	1981
Headquarters	Sydney, NSW, Australia
Net income	A$809.6 million (2011)[1]
Employees	2 500 (2011)[1]
Website	www.cochlear.com

Cochlear Limited (ASX: COH) is an Australian company that designs, manufactures and sells the Nucleus Cochlear implant along with the Bone Conduction Hearing Solution Baha osseointegrated bone conduction implant, with an estimated 250 000 cochlear implant/Baha recipients receiving a Cochlear Limited product since their establishment in 1981.^[1]

Products

Cochlear offers four distinct product lines all of which provide solutions for different types of hearing loss. These include: cochlear implants, bone conduction implants, implants for electro-acoustic stimulation and implants for direct acoustic stimulation. Whether these hearing solutions were implanted over 25 years ago or today, the company’s commitment to backward compatibility guarantees that new upgrades and innovations can be offered to Cochlear recipients without further surgery.

In 2005, Cochlear acquired the Swedish company Entific Medical Systems, renamed Bone Anchored Solutions (BAS). Through this acquisition, Cochlear expanded its hearing solutions portfolio to include the Baha® bone conduction implant for conductive hearing loss, mixed hearing loss and single sided sensorineural deafness, as well as the Vistafix™ system for facial prosthetic retention. Baha completely bypasses the outer and middle ear using direct bone conduction which is a natural pathway for sound.

The Hybrid system, introduced to the European market in 2008, uses electro-acoustic stimulation (EAS), combining electrical stimulation and acoustic stimulation. It is a unique solution for people suffering from mild to moderate hearing loss in the low frequencies and severe to profound loss in the high frequencies. The direct acoustic cochlear stimulator (DACS) is a new type of implantable hearing device, designed to provide an effective solution with severe to profound mixed hearing impairment. DACS provides mechanical (acoustic) stimulations directly to the cochlea.

Innovation

Innovation is a strategic priority for Cochlear since its foundation. As the technology leader in its field, Cochlear invests around twice the industry average and a significant percentage of its global sales revenue in research and development (13% in Financial Year 2011). Cochlear’s research program is extensive, with the company currently participating in over 100 collaborative research programs across 20 countries. These research and development programs span our four main areas of implantable hearing solutions. Cochlear, also provides a range of services to support medical professionals and recipients at every stage.

Global Reach

Since establishing in 1981, Cochlear has enterprises in various global locations including the United States, Japan, Switzerland, Hong Kong, Germany and the United Kingdom . Cochlear has expanded and formed a solid presence, manufacturing implants and distributing products internationally. ^[2]

Controversies

Violation of Anti-Kickback Statute

Cochlear Limited's 2007 annual report acknowledged that a US Federal investigation continued into its payments to physicians and providers. In February 2007, part of the whistleblower complaint against Cochlear filed by former Chief Financial Officer Brenda March was unsealed by the U.S. District Court for the District of Colorado. The complaint alleges that Cochlear violated the Federal anti-kickback statute through its Partners Program, which offered credits towards free or discounted products for physicians who implanted Cochlear devices, as well as gifts, trips, and other gratuities paid to physicians and providers. The government intervened in the case and transferred it from the U.S. Department of Justice to the Health and Human Services Inspector General for the imposition of civil penalties. In June 2010, Cochlear America agreed to pay a fine of $880,000 as part of a settlement with the US Department of Justice.^[3]

Recall

On 12 September 2011, Cochlear announced that they are voluntarily recalling all Nucleus CI500 devices after reports of the devices shutting down. The cause of the malfunction and number of devices affect is unknown. CEO of Cochlear, Dr Chris Roberts also said in his press conference manufacturing of the devices will cease until the cause of the malfunction is evaluated.^[4] The recall resulted in a drop of 27% of the companies shares, the product being recalled makes up 70% of Cochlear's total company sale. ^[5]

References

1. ^ ^{a b c} "2011 Annual Report". Cochlear Limited. http://www.asx.com.au/asxpdf/20110809/pdf/4208vhc5sff03d.pdf. Retrieved 2011-08-17. 
2. ^ "History of Cochlear". Powerhouse Museum. http://www.powerhousemuseum.com/hsc/cochlear/history.htm. Retrieved 12 September 2011. 
3. ^ "United States Settles False Claims Act Allegations With Cochlear Americas for $880,000". prnewswire.com. 2010-06-09. http://www.prnewswire.com/news-releases/united-states-settles-false-claims-act-allegations-with-cochlear-americas-for-880000-95961459.html. Retrieved 2010-06-10. 
4. ^ "Cochlear shares plummet on product recall". Sydney Morning Herald. 12 September 2011. http://www.smh.com.au/business/cochlear-shares-plummet-on-product-recall-20110912-1k4sr.html. Retrieved 12 September 2011. 
5. ^ "Cochlear Recalls Latest Implant Range, Shares Plunge". Wall Street Journal. 12 September 2011. http://online.wsj.com/article/SB10001424053111904265504576565540894094816.html. Retrieved 12 September 2011.