Cochlear

Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. The company was founded in 1981 and is headquartered in Sydney, Australia.

Corporate affairs

Cochlear was originally founded in 1983 as a subsidiary of Nucleus, a medical electronics company founded in 1964. Previously in 1981 Nucleus received a grant from the Australian government to commercialize development of a multi-channel cochlear implant like the one that Graeme Clark created. The project was a success, with the first commercial implantation of a Nucleus implant taking place in 1982. Although it was established as a subsidiary of Nucleus, which was acquired by Pacific Dunlop in 1988, Cochlear soon became a separate and publicly listed company in 1995 when Pacific Dunlop was split up. In 2004 Cochlear expended its portfolio beyond cochlear implants by buying Entific Medical Systems, a Swedish company that produced bone anchored hearing aids for conductive hearing loss. Most of the company's income is from after-market products such as processor upgrades and accessories.In April 2022, Cochlear announced it would acquire Danish competitor Oticon Medical for A$170 million after its parent company Demant decided to exit the hearing implant business. At the time, Oticon Medical was running at a loss, with sales lower than expected and technical problems affecting some of their devices, leading to a voluntary recall.

Violation of anti-kickback statute

Cochlear Limited's 2007 annual report acknowledged that a US Federal investigation continued into its payments to physicians and providers. In February 2007, part of the whistleblower complaint against Cochlear filed by former Chief Financial Officer Brenda March was unsealed by the U.S. District Court for the District of Colorado. The complaint alleges that Cochlear violated the Federal anti-kickback statute through its Partners Program, which offered credits towards free or discounted products for physicians who implanted Cochlear devices, as well as gifts, trips, and other gratuities paid to physicians and providers. The government intervened in the case and transferred it from the U.S. Department of Justice to the Health and Human Services Inspector General for the imposition of civil penalties. In June 2010, Cochlear America agreed to pay a fine of $880,000 as part of a settlement with the US Department of Justice.