Cochlear sales plunge as surgeries cancelled

Sales by hearing implant manufacturer Cochlear plunged 60 per cent in April, confirming company predictions of the negative effects of the Covid-19 pandemic.

The Sydney company reported that surgery cancellations as hospitals were emptied to prepare for the virus occurred as previously predicted.

Cochlear implant sales declined 80 per cent in the month with most elective surgeries deferred across the US and Western Europe.

ENT rofessionals as well as surgical protective equipment is being directed to Covid-19 treatment facilities.

The surgeries that did take place were largely for children, who benefit the most by early intervention.

Cochlear’s sales were shielded somewhat because of the size of its services business, which accounts for a third of sales in normal circumstances.

This includes sound processor upgrades delivered remotely, and the company’s Cochlear Link and Remote Check functions which allow remote access and programming of implants by clinicians.

Surgeries continue in South Korea, and until recently, Japan. Meanwhile surgeries have recommenced in China.

The company has significantly reduced spending during the pandemic and implemented a hiring freeze.

The company expects surgeries to be rescheduled following the pandemic, and is in a strong financial position having raised $1.1 billion in new equity.

Picture: Cohlear

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