Cochlear Limited (ASX: COH) has been witnessing a strong downtrend since morning. At the time of writing, the stock price stands at A$191.040 per share which implies an intra-day fall of $11.340 or 5.603%. The stock price tumbled as a result of the FDA (US Food and Drug Administration) approval which was given to Bose Corporation. The hearing aid would be helpful for the patients as they can be placed by them and the hearing device also has a feature of being controlled with the help of smartphones.
The stock prices of other hearing aid makers have witnessed the negative impacts after the FDA granted approval for the marketing of the hearing aid. At the time of writing, Cochlear Limited had a market capitalization amounting to $11.67 billion while the company’s annual dividend yield stood at 1.48%. The stock price of Cochlear also got impacted by the negative movement of the entire sector. The company which is having a higher price-to-earnings ratio or P/E are witnessing a sell-off pushing the index lower. COH’s share traded at A$191.88 implying an intraday fall of 5.188% as on October 09, 2018 (AEST 4:00 PM).
What Prompted FDA for Approval?
The administration has given the green signal to the marketing of the Bose Hearing Aid which would be helpful for the persons who are 18 years or more. This hearing device represents the first one which has been allowed by FDA for the purposes of marketing. The device can easily be controlled by the users itself rather than seeking the help of the healthcare professional. The key personnel of FDA stated comments which reflected that there has been the need for such types of devices. They added that the loss of hearing could be the serious problem. The hearing problem can be little and can also be as severe as being deaf.
The problem of hearing has been increasing and around 37.5 million people which are 18 or above this age have reported that they encounter certain challenges without the hearing aid. There are several causes which leads to the hearing loss and some of them include, loud noises, aging, particularly medical conditions etc. This loss can be temporary or, in some cases, permanent. The individuals which have been suffering from the hearing loss on a permanent basis could utilize the benefits of the hearing device and thus, can communicate in a more effective manner. With the help of the hearing aid, the users would be able to hear the sounds around them better. The Bose Hearing Aid also has the feature of air conduction which means that this device would be operating with the help of sound vibrations via one or more microphones. With the help of mobile phones, the users of the device can make adjustments as per their needs.
Even though the Bose hearing aid can be programmed by the users themselves, the device needs to meet the state as well as federal laws which are related to the sales of the hearing aids. The state laws could also contain the policies which state that these devices need to be bought only by the licensed person. The users of the device would rather go for those which have been selected by them and not the settings which have been chosen by the professional person. The hearing device also has the label which states that when they need to seek professional guidance.
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