Significant revenue and EBIT growth
The 26% increase in revenue reflects the strong market uptake of the Freedom for Nucleus 24 launched during the year together with the continued uptake of bilateral implantation. The expansion of the field force during 2006, focus on bilateral implant market growth initiatives, freeing-up of clinic capacity and reimbursement approval for the Baha product all contributed to the 26% revenue and 48% EBIT growth.
Freedom for Nucleus 24 launch led strong revenue growth
The Freedom processor for Nucleus 24 was launched in September 2006. The performance benefits recipients have gained from this upgrade underpinned the strong sales. Approximately 34% of Nucleus 24 implant recipients have already upgraded to the Freedom processor.
The benefits of binaural hearing drove bilateral sales growth
The Americas region continued promoting the enhanced use of the auditory system that bilateral implantation provides. The improved hearing performance and benefits experienced by bilateral recipients and their promotion have helped drive up sales of bilaterals. In the current year, bilateral implants comprised nearly 15% of total implant sales in the region up from approximately 9% last year.
Cochlear sponsored the first Bilateral Cochlear Implant Symposium, which was held in Charlotte, North Carolina in April 2007. Over 450 clinicians attended the Symposium, which explored the advances in technology, outcomes and reimbursement of bilateral cochlear implants. The Symposium generated considerable interest in bilateral implantation by the clinicians and will likely stimulate demand.
Advocacy and awareness continuing to drive sales
The Cochlear Awareness Network was further strengthened in 2007, with the number of volunteer advocates almost doubling in the year. Advocates raise awareness about hearing loss and provide a solid support network for those with or considering a cochlear implant, including their families. Advocates provide an enthusiastic voice, communicating about their life-changing experiences with a Cochlear implant.
The second annual Cochlear Celebration was held in San Antonio, Texas in February 2007 with over 900 Cochlear recipients and their families attending. Prof Graeme Clark, AC, inventor of the multi-channel Cochlear implant, and Rod Saunders, the first recipient, also attended. This energising event presented an excellent opportunity for the Cochlear community to share their life experiences. Cochlear gathered user feedback on products and programs, provided education sessions, recruited volunteer advocates and discussed the importance of awareness development and advocacy. There was considerable interest from the Cochlear community around bilateral implants and the Freedom upgrade programs.
Strengthening organisational capability with a focus on market development
Towards the end of the financial year, the Americas region began the next stage in expanding the field organisation. This expansion is aimed at capitalising on opportunities in the hearing aid channel, including hearing aid dispensers. It is estimated that over 300,000 patients with hearing loss in the United States who wear a hearing aid are clinically indicated for, and so would obtain greater benefit from, a cochlear implant or Baha product. The expanded field force will focus on educating professionals on how to identify cochlear implant candidates in the hearing aid channel.
Expanding clinic capacity through Sound Partnership
Cochlear Americas launched the Hear Always program as part of the continuous Sound Partnership during the year. This is a first for the cochlear implant industry and is designed to improve clinic efficiencies and enhance patient care. Hear Always is focused on Cochlear providing complete technical support directly to recipients, including processor troubleshooting, recipient tips and techniques, and warranty management and maintenance. We estimate that removing this work from the clinics has the potential to save participating clinics an average of four hours of non-reimbursable time per week. This translates to a material saving of non-reimbursable expenses across clinics nationally. Importantly, it also helps address the clinic capacity restraints.
