U.S. Payer Constraints Limit Cochlear's Near-Term Opportunities

Dow Jones
08/19

2231 GMT - Cochlear's opportunities for near-term growth are limited by persistent payer constraints, Jefferies analysts warn. They tell clients in a note they are seeing an increase in prior authorization rejections in U.S. healthcare, which the Australian hearing-implant maker will have to contend with. Higher out-of-pocket costs could lead to delays in higher-priced procedures such as cochlear implants, they warn. The analysts also point to external analysis suggesting that insurers denied between 12% and 18% of U.S. standard prior authorization requests in 2025. They raise their target price 13% to 144.75 Australian dollars, but stay neutral on the stock. Shares are at A$141.20 ahead of the open.

 

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