cosmetic product review

Cochlear's sound outlook dampened by debate over rival

After piercing last week's gloom with a 16 per cent lift in annual profit to $180 million, his more animated discussion concerns rival hearing device maker Advanced Bionics, and when its product will make a complete return to the market.

It's the downside of being a high-growth, single-product company -- there tends to be a disproportionate focus by investors on potential market disruptions.

So when asked if last year's 17 per cent growth in unit sales of cochlear implants were sustainable, given that AB returned to the European market in April and at some stage will do likewise in the US, Roberts prefers to rhapsodise about his own product.

"Unit growth was marginally above the long-term trend of 15 per cent compound annual growth," the Cochlear boss tells Strategy Matters.

"Whether it's 15 per cent or 17 per cent is a distraction -- the real story is about sustainable growth.

"(Cochlear's) Nucleus 5 implant is a stunningly successful product, with more than 50 innovations. I see Cochlear as a microcosm of 100,000 years of human development."

The Cochlear story is part of local scientific lore.

In the mid-1960s, Graeme Clark at the University of Melbourne came upon a research paper that described how deaf people could receive hearing sensations through electric stimulation. The seed was planted for the development of the first electronic implantable hearing device.

More than 80,000 severely or profoundly deaf people have now received a Cochlear implant, but there is significant unmet demand, with the number of people born deaf exceeding those who get an implant.

Healthcare budgets and access to advanced medical care act as natural constraints on Cochlear's growth, as do the ambitions of AB and the unlisted group Med-El.

Last November, however, Cochlear's market dominance was enhanced when the US Food and Drug Administration recalled the AB product because of a design fault that allowed moisture to enter the device.

cosmetic product review - News

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