Cochlear Ltd. recently issued a recall of its best-selling implant because of moisture inside of the device, unrelated to body fluid. The Australian company says its investigation shows the moisture is causing a diode malfunction - and may be caused by a manufacturing issue. Diodes are used to get power and radio signals to the implant. Stock in the company has continued to slide as it attempts to figure out what caused the problem in at least 200 of the devices that led to a September 12th recall. Half of the company's income comes from the recalled Nucleaus 5. Most analysts believe it will stay off the market for at least six months. In the meantime, Cochlear is offering the older Nucleus Freedom. More information is expected to come to light during Cochlear's annual shareholders meeting on October 18th.
Tuesday, October 4, 2011
The Problem is Moisture
Cochlear Ltd. recently issued a recall of its best-selling implant because of moisture inside of the device, unrelated to body fluid. The Australian company says its investigation shows the moisture is causing a diode malfunction - and may be caused by a manufacturing issue. Diodes are used to get power and radio signals to the implant. Stock in the company has continued to slide as it attempts to figure out what caused the problem in at least 200 of the devices that led to a September 12th recall. Half of the company's income comes from the recalled Nucleaus 5. Most analysts believe it will stay off the market for at least six months. In the meantime, Cochlear is offering the older Nucleus Freedom. More information is expected to come to light during Cochlear's annual shareholders meeting on October 18th.
