Envoy Medical (NASDAQ: COCH) is a leader in hearing solutions, offering innovative hearing technologies and advanced hearing implants. Its fully implanted hearing device is unique because it leverages the natural ear – not an artificial microphone – to pick up sound. In an insightful email conversation with AlphaStreet, Brent Lucas, chief executive officer of Envoy Medical, shed light on the various aspects of the business including recent innovations and growth plans.
- Can you provide a brief overview of Envoy Medical?
Envoy Medical is a leading U.S.-based medical device company providing innovative technologies across the hearing loss spectrum that improve outcomes for patients. We are focused on hearing implants and are well-positioned to gain market share in the existing hearing implant space as the overall industry transitions from partially external hearing implants to fully internal hearing implants. We are different from every other hearing company in that we have two fully internal hearing implants that use the ear to pick up sound rather than rely on a microphone. One of our devices, the Esteem, is an FDA-approved fully implanted active middle ear implant that has been available on the market since 2010.
Our newest device, the Acclaim, is a fully implanted cochlear implant that received Breakthrough Device Designation from the FDA and is currently investigational and in clinical trials. Both of these products use our piezoelectric sensor technology to leverage the natural outer ear and middle ear to pick up sound rather than use an external or internal microphone. We are owned and operated, including manufacturing, in the U.S., and look forward to disrupting an industry that we believe is complacent.
- Considering the disruptive nature of Envoy Medical’s products, please explain how they differ from traditional hearing aids.
For starters, both of our devices are surgically implanted and fully internal – there are no external components sitting on the head or in the ear. Fully-internal devices allow patients to have access to sound all day – 24/7 – and to be used in more situations such as swimming, showering, and sleeping. Second, we do not use external microphones to pick up sound, like hearing aids and all commercially available cochlear implants. We leverage the natural anatomy of the ear to capture sound as a person with normal hearing would, and then transfer that information into a signal that we process before delivering the therapy.
Third, both of our devices have longer-lasting battery life than hearing aids or other cochlear implants. We believe that battery life is an important consideration for patients living with hearing loss, and our patients will not be in a situation where they have to change their batteries on a daily basis. Finally, both of our devices are designed to be used when hearing aids are no longer providing the patient with enough benefit. There is a point in some peoples’ hearing loss journeys when they cross a threshold where hearing aids no longer provide enough benefit. That’s when hearing implants become the tool to help them regain hearing.
- Looking ahead, what are the biggest challenges and opportunities you see in the next five years?
We have a lot of green space in front of us. The opportunity we have in the cochlear implant market with our fully implanted Acclaim Cochlear Implant is very exciting. I believe that we can quickly become a dominant player in the cochlear implant market by offering a fully internal cochlear implant that also uses the ear – not a microphone – to pick up sound. With approximately 2.8 million adults, in the U.S. alone, being potential candidates for cochlear implants, the potential opportunity in this market segment is significant (JAMA: Addressing Estimated Hearing Loss in Adults in 2060).
In terms of challenges, there are two that I’m focused on. Operationally, I will need to keep the team committed to our strategy and execute that strategy on time. We have an innovative technology that is unmatched in the market and could go in so many different directions in the future, but we need to focus on what is in front of us at this moment. On the investor side, our biggest challenge is educating the U.S. investor base on the hearing loss market and the opportunity we have to become a successful business that could reward early believers. The more people we talk to and educate, I believe, the more people will understand our short-term and long-term opportunities.
- What unique qualities do you believe set Envoy Medical apart from competitors?
In terms of our technologies, we are focused on fully internal hearing implants that leverage the natural ear to pick up sound. Our competitors have partially external hearing implants that rely on a microphone. In addition to being visible when you may not want people to know about your hearing disability, external devices need to be taken off at night and in other situations. Our patients enjoy the possibility of 24/7 hearing and not being tethered to their external hearing devices. In addition, we believe that picking up sound from the ear will have the advantage of allowing the ear to be used for everyday accessories – such as consumer electronics that sit in the ear. In terms of our company, we are owned and operated in the U.S. with our manufacturing facility in Minnesota. Finally, we have a lot of upside and growth potential with our fully implanted devices.
- What is your long-term vision for Envoy Medical?
Long term, I believe that Envoy Medical has the opportunity to become the leading hearing implant company in the world. We have a game-changing technology that affords us the opportunity to disrupt an established and stagnant market. In addition, the ideas for future iterations are pretty exciting. We will put the desires of the patient first and foremost in our minds, and that should translate into strong demand for the products we create over time. We have an incredibly exciting opportunity to create substantial value, and I look forward to leading the way.