Sonova Recall to Cost Up to 45 Million Francs, CEO Tells Bilanz

Sonova Holding AG expects the recall of its cochlear hearing implant to cost between 40 million and 45 million Swiss francs ($45.4 million) in profit, Chief Executive Officer Valentin Chapero Rueda said in an interview in today’s Bilanz.

The recall will reduce sales by 4 percent, Rueda told Bilanz. He’s uncertain how long it will take before the company can distribute the implants in the U.S. again, according to the magazine.

Sonova said last month it would remove the HiRes 90K cochlear implant, made by its Advanced Bionics unit, from the market because of a malfunction that led to “severe pain, overly loud sounds and/or shocking sensations” in two cases.

About 28,000 people have received the implant, Rueda told the Swiss publication.

To contact the reporter on this story: Allison Connolly in Frankfurt at aconnolly4@bloomberg.net.

To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net.

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