Envoy stock jumps on news its hearing implants might become eligible for insurance coverage

Quotes on shares of Envoy Medical, a developer of fully implanted hearing systems, jumped 14.5% on Wednesday, July 31. Buoying the stock was news of a U.S. Senate bill that, if passed, would make the company’s implants eligible for insurance coverage, the company reported. According to Envoy Medical, nearly 40 million Americans suffer from disabling hearing loss.

Details

Envoy Medical stock surged about 14.5% to $2.10 per share on Wednesday. Since the beginning of the year, it has now advanced more than 18%.

Earlier in the day, the company reported that U.S. senators had introduced a bill to recognize implanted active middle ear hearing devices as prosthetics. Envoy Medical describes itself as one of the few producers of such devices worldwide and the only one with FDA approval. If the bill is passed, Envoy’s implants will be covered by Medicare, the federal health insurance program in the U.S.

About Envoy Medical

Envoy Medical claims to be a pioneer in fully implanted devices for people with hearing loss. Its portfolio includes two products. One is the FDA-approved Esteem middle ear implant, designed for adults with moderate-to-severe hearing loss. The other is the Acclaim implant for adults with severe-to-profound hearing loss that is not adequately addressed by hearing aids. It is an experimental device that is currently undergoing testing.

The company reported revenue of $59,000 in the first quarter of 2024, down 32% year-over-year. It attributed the revenue decline to fewer battery replacements for its devices.

Analyst insights

According to MarketWatch, four analysts cover Envoy. They recommend buying the stock, with an average target price of $5.88 per share.