30 million Americans need a hearing aid. Many of these don’t have one because they can’t afford one, as subsidies are not generally provided in the US, as in Denmark, for example. This puts one of the key elements of Audientes’ investment case in place.
Audientes (AUDNTS – share price DKK 6.50) has developed a hearing aid for people with low to moderate hearing loss for the globally very large segment of people who want a high quality hearing aid but cannot afford one from the major manufacturers such as Demant, Sonova or GN Store Nord.
A big problem and a large market
The problem is big in 3rd world countries, including India, which is Audientes’ first focus market. But it’s also a problem in the US, where 30 million people have an unmet need for a hearing aid. That’s why the FDA has now – finally and with some resistance from the big, established manufacturers – opened up OTC sales of hearing aids to people with low to moderate hearing loss. OTC means that the hearing aids can be sold over the counter and do not require special fitting at a hearing clinic, but can be bought in, for example, ordinary shops and glasses stores. This is done to lower prices and increase innovation for this segment – in line with Audientes’ mission and vision.
Read more: Audientes changes direction
Sales in the US in 2023
The OTC market will open in mid-October, but Audientes will not then be ready to launch a product that meets the specific requirements of the FDA on, for example, maximum amplification and volume control, etc. However, Audientes expects to be able to launch its hearing aid in the US as early as next year.
25 August – Focus on sales
The investment case in Audientes is centered on the development of sales of the Ven hearing aid, which was launched in India this year. Information about the sale probably helped sow doubt among investors about how big the growth is, which combined with announcements about a stock exchange switch, the raising of a short-term loan and a capital raising in H2 2022 all contributed to a falling share price.
1-year price development of Audientes relative to Kapital Partner Nordic Health Care Index
