Envoy Medical, Inc. (Nasdaq: COCH) has announced FDA approval to initiate a pivotal clinical study for its Acclaim fully implantable cochlear implant (CI). This groundbreaking device aims to address severe to profound sensorineural hearing loss, offering a potential alternative for individuals not adequately helped by traditional hearing aids.
The Acclaim CI utilizes a sensor designed to leverage the natural anatomy of the ear, differing from traditional microphone-based systems. The company believes this fully implanted technology represents a first-of-its-kind approach to hearing restoration.
Reimbursement Progress for Esteem FIAMEI
In addition to the Acclaim CI milestone, Envoy Medical is actively pursuing reimbursement pathways for its Esteem FIAMEI (Fully Implanted Active Middle Ear Implant), which is already FDA-approved. The Esteem is indicated for adults with moderate to severe sensorineural hearing loss, providing 24/7 hearing capability without external components.
Legislative Support and CPT Codes
Envoy Medical is also garnering support for bipartisan bills in both the House and Senate aimed at reclassifying fully implanted middle ear hearing devices, potentially making them coverable benefits for Medicare beneficiaries. Furthermore, the American Medical Association’s CPT Editorial Panel has approved Category III CPT codes for totally implantable active middle ear hearing devices, a significant step forward for the Esteem device.
Financial Overview
Envoy Medical's Q3 2024 financial results showed net revenues of $56 thousand, a decrease from the previous year, primarily due to reduced battery replacement requests for Esteem implants and supply chain issues. R&D expenses increased to $2.8 million, driven by costs associated with the Acclaim CI pivotal trial preparation. As of September 30, 2024, cash and cash equivalents stood at approximately $4.4 million.
Brent Lucas, Envoy Medical’s Chief Executive Officer, stated, "The progress and accomplishments of late have been extremely important to Envoy Medical as they have set the stage for us to demonstrate the value of fully implanted hearing devices."
