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).
