November 28, 2010
Advanced Bionics is recalling about 28,000 of its HiRes 90k cochlear implants after 2 individuals reported loud noises and sharp pain 8-10 days after their implants were activated. Approximately 1,000 people have been recipients of these implants and may be at risk for similar problems.
Advanced Bionics was acquired last year by Sonova, a Swiss company. Sonova is also behind the highly lauded Phonak hearing aids and FM systems. This acquisition seemed to show great promise: could Swiss precision and the backing of a strong company such as Sonova buoy Advanced Bionics formidable CI technology? Furthermore, could Sonova make Phonak’s FM systems work seamlessly with Advanced Bionics cochlear implants/sound processors? It all seemed like an exciting idea.
Advanced Bionics was formerly with Boston Scientific, a merger that began unraveling publicly in 2007. It’s hard to know what really happened there. Some think that when Boston Scientific acquired Guidant Corp. for a hefty $28.4 billion, it subsequently tightened underling Advanced Bionics’ product development budget. Did this effect quality control or was quality control already an issue at hand? Class action lawsuits are currently underway for faulty CI’s implanted between July 2003 through March 2006.
The intellectual brawn behind Advanced Bionics has always been impressive. Alfred E. Mann, an inventor and founder of Advanced Bionics, also developed solar cells for spacecraft in addition to numerous medical devices for those suffering from debilitating medical impairments. Together with the University of California at San Francisco and The Research Triangle Institute, he developed the technology for the Clarion Cochlear Implant. This became the basis for one of Advanced Bionics’ first products to aid those with severe to profound hearing loss.
The announcement of a recall may deter parents from choosing Advanced Bionics’ Harmony cochlear implant for their deaf child. One may wonder if these are manufacturing errors leftover from Advanced Bionics era at Boston Scientific, or if this error is reflective of Advanced Bionics new management under Sonova? Either way, it may take several years to rectify and rebuild product trust. Historically, Advanced Bionics has shown swift response to product error, culpability, and concern for its customers.
Advanced Bionics is not the first cochlear implant manufacturer to face a lawsuit. Cochlear America, which garnishes the lion-share of the cochlear implant market (70% of sales), paid the U.S. Department of Justice $880,000 for violating the Anti-Kickback Act and False Claims Act. The charges were the result of paying kickbacks to physicians who recommended the Cochlear America CI product.
Former CFO and VP of Cochlear America, Brenda March, filed a whistleblower complaint with the U.S. Government revealing incentives for medical personnel to implant Cochlear America’s CIs. Surgeons, audiologists and other medical staff would get points each time their services resulted in a Cochlear America CI sale. The points led to freebies: the more earned, the bigger the freebies. Freebies included exotic holidays, first class airfare tickets for themselves and a spouse/guest, golf tournaments, all expenses flights/trip to Australia twice a year with significant free time & recreational activity; payment of salaries of employees, and general operating expenses of clinics (resulting in more profit for physicians or practices); free products (which they could then sell); and direct cash payments. In her legal complaint, Ms. March explained, “The express purpose of such payments are and were to encourage Physicians to direct hospitals…to purchase Cochlear Implant Systems.”
Sources:
Alfred Mann Foundation
Alfred E. Mann Foundation for Biomedical Engineering
Boston Scientific Is Undoing Merger With Advanced Bionics
Sonova Shares Tumble On Hearing Implant Recall
