Nucleus 5: Moisture Blamed for Cochlear Implant Malfunctions

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The Australian - October 5, 2011

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Moisture blamed for Cochlear implant malfunctions

THE cause of Cochlear's voluntary recall of its biggest-selling product is

becoming clearer ahead of this month's potentially fiery annual meeting,

with clinics suggesting the hearing implant is malfunctioning due to

moisture inside it.

As interest from short sellers further weighed on Cochlear's stock

yesterday, analysts at UBS told clients " global clinics are being advised

that the problem relates to moisture in the implant, which causes diode

malfunction " .

Diodes are used to receive power and radio signals to the implant. " Advice

to clinics suggests that analysis of the moisture indicates that it is not

related to body fluid, " UBS analyst Goodsall said.

" This may suggest that there has not been failure of the implant's hermetic

seal post-implantation, which may imply that the moisture relates to

manufacturing.

" However, the issue remains under investigation. "

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Complete article: http://tinyurl.com/3cow86z