Oticon Medical’s parent company Demant has decided to discontinue its hearing implants business. Therefore, it has negotiated an agreement with Cochlear to sell Oticon Medical. The decision follows a thorough review, including how to ensure the best lifelong support of existing users. Until the ownership transfers to Cochlear, Oticon say they remain at the disposition of our customers and users.
Since the introduction of the first Oticon Medical products in 2009, Demant say they have invested significantly in implantable solutions for hearing loss, and the employees of Oticon Medical have worked tirelessly to bring industry-leading technology to thousands of patients. This has led to many major milestones along the way. However, Demant has concluded that the prospect of becoming a global leader in hearing implants is not achievable within a reasonable timeframe without disproportionate levels of investments. In this light, Demant has decided to discontinue its efforts in hearing implants.
Demant believes it is in the best interest of Oticon Medical’s patients to sell its Hearing Implants business to Cochlear, the global leader in implantable solutions for hearing loss. As part of the intended transaction, Cochlear has committed to continue servicing existing patients of Oticon Medical life-long. Cochlear has committed to developing products compatible with existing Oticon Medical implants, so a patient can continue to access the new sound processor technology with their existing implant.
Both Demant and Cochlear announced the agreement today in a release to the stock exchange. In the release, CEO Søren Nielsen of Demant said: “Overcoming the challenges of hearing loss – and living with implant technology to alleviate this – is a life-long journey, and we believe it is best for our patients to continue this journey with Cochlear. We will do everything in our power to ensure minimal implications of the intended divestment for customers and patients as well as the employees of Oticon Medical, who have delivered beyond expectations and are some of the brightest minds in the industry,”
Cochlear’s CEO & President, Dig Howitt added, “We look forward to welcoming Oticon Medical’s entire base of implant customers and patients to the Cochlear family. Driven by our mission to innovate and deliver a lifetime of hearing outcomes, we will seek to ensure that Oticon Medical’s customers and patients continue to be supported with a lifetime of hearing solutions. We will work closely with Demant to ensure a seamless transition of the business to Cochlear to ensure continued access to current Oticon Medical technology for customers and patients in the coming years. We will develop next-generation sound processors and services that will enable customers to transition to and benefit from Cochlear’s technology platform over time. The acquisition of Oticon Medical will provide us with greater scale and will enable us to increase our investments in R&D and market growth activities.”
The intended transaction involves the sale of Oticon Medical, which comprises its cochlear implants (CI) and bone anchored hearing systems (BAHS) product categories. The transaction can only happen if relevant authorities approve it, and if it is approved, the agreement is expected to become final in the second half-year of 2022.
All Oticon Medical users will be well taken care of in the future. Please rest assured, at Oticon Medical we will continue to do our utmost to service both professionals and patients in the transition phase. On CI, we will put all our efforts on supporting existing patients with upgrades, accessories, and repairs. On BAHS, we will continue to operate as normal including delivering the newly released Ponto 5 SuperPower. Please contact your usual local Oticon Medical representative for any questions you might have: Contact Oticon Medical