Shares in cochlear implant company Cochlear Limited (ASX:COH) have fallen 20% after the company announced a product recall.
Cochlear shares closed at $72.18 on September 9th and had dropped to $57.04 this morning, a drop of over 20%.
On Monday, Cochlear Limited revealed it would undertake a voluntary recall of unimplanted devices in its Nucleus CI500 range.
Cochlear Limited did not give an estimate of the financial impact of the recall, stating that it is “difficult to predict at this stage.”
The company said that it had decided to conduct the recall after identifying an increase in the failure rate of one particular product in the range, it said.
Less than 1% of the implants have failed since launch in 2009, and affected devices shut down without injuring the wearer, the company said. The remaining two of the three devices in the range are also only available in certain markets.
But these mitigating factors have so far failed to arrest the falls in Cochlear's share price.