MENU

Why the Cochlear Limited (ASX:COH) share price bounced higher today

The Cochlear Limited (ASX: COH) share price has been under pressure in recent days after audio manufacturing giant Bose entered the U.S. market with a new hearing aid which can be used with the assistance of a doctor.

The good news is that the market appears to have looked past this now due to a positive announcement out of the hearing solutions company this morning.

Cochlear’s shares are up over 3% to $198.17 in afternoon trade.

What has Cochlear announced?

This morning Cochlear announced the next phase in its long-term research and development program towards a totally implantable cochlear implant.

According to the release, the company has commenced a clinical feasibility study to evaluate a totally implantable cochlear implant technology.

Management has advised that the 11-patient study will collect data associated with the performance and safety of the technology which can be used with and without an externally-worn sound processor to provide users with 24-hour hearing.

It advised that the study’s objective will be to obtain preliminary evidence of the efficacy of the treatment, collect additional safety data, and compare clinical outcomes before and after an intervention.

They have, however, warned that the technology is complex and a commercially available product is not expected for years.

How does the technology work?

The release explains that totally implantable cochlear implant technology used in the clinical feasibility study is very different to its existing products.

“The new technology being studied includes an implanted microphone, an implanted rechargeable battery, and an implanted sound processor. This means that the patients can choose between using an external sound processor, or taking it off and relying on the implanted microphone and internal sound processor, while still maintaining hearing function.”

Should you invest?

While it will be many years until this new technology potentially launches, it is great to see that the company isn’t resting on its laurels and is focused on the next stage of its development.

I think this supports my view that Cochlear is a great buy and hold investment and one of the highest quality companies on the market along with fellow healthcare heavyweights CSL Limited (ASX: CSL) and ResMed Inc (ASX: RMD).

But Cochlear is not the only company developing revolutionary technology. Check out these potential stars of the future.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.