Envoy shareholders see Apple entering hearing technology market as positive news
Quotes on hearing implant developer Envoy Medical jumped more than 6% on Monday, September 23. The updated AirPods Pro 2, which can double as hearing aids, could be a positive development for Envoy as they could potentially work in concert with the company’s fully implanted devices, said Glen Taylor, a major Envoy Medical investor and the owner of two NBA teams.
Details
On Monday, Envoy Medical stock rose 6.3% on the Nasdaq to $3.72 per share, its highest mark since early May. In 2024, it has more than doubled, gaining 105%.
What is driving the gains
In September, the U.S. Food and Drug Administration (FDA) approved Apple’s hearing aid feature on the updated AirPods Pro 2. This could be good news for Envoy, said major shareholder Glen Taylor in a Monday interview with Fox Business News when asked whether Apple entering the hearing technology market concerned him.
Unlike hearing aids, implants are not placed in the ear canal and they do not need to be put on or taken off. Therefore, devices like the AirPods Pro 2 could potentially work in concert with Envoy Medical’s implants and enhance them, Taylor pointed out during the interview.
About Envoy Medical
Envoy Medical develops fully implanted devices for people with hearing loss. Its portfolio includes two products: an FDA-approved Esteem middle ear implant, designed for adults with moderate-to-severe hearing loss, and the Acclaim cochlear implant, which essentially replaces the function of the inner ear. The company has announced that it has completed preliminary research on Acclaim and is ready to move on to a clinical trial.
In the second quarter of 2024, Envoy’s revenue grew almost 8% year over year to $68,000. This was driven by the sale of two Esteem implants, which are currently not covered by government insurance and not widely covered by private insurers. However, U.S. senators have introduced a bill to recognize these implants as prosthetics, reported Envoy. If the bill is passed, Esteem will be covered by Medicare, the federal health insurance program in the U.S.
Analyst recommendations
According to MarketWatch, four analysts cover Envoy Medical. They recommend buying the stock, with an average target price of $5.94 per share, indicating upside of almost 60% versus the last closing price.
