Cochlear's Struggles

Cochlear's recall of its best-selling hearing implant had hurt the company’s reputation and bottom line. The Australian company's stock dropped 20% on the news, wiping out more than $800 million of the company’s value. The Nucleus 5 mades up about 70% of Cochlear's sales and there is no clear indiction that Cochlear knows what's wrong with the unit. However, only about 150 of the 25,000 of the units have reportedly failed since its launch in 2009. While the Nucleus 5 goes on the shelf, Cochlear will go back to pushing its Freedom implant. This is the first major product recall in the company's history.