Envoy Medical, a White Bear Lake-based medical technology firm, has seen a surge in its stock value following its recent merger with Tampa-based Anzu Special Acquisition Corp. The merger was completed in early October, and Envoy commenced trading on the Nasdaq exchange under the “COCH” ticker symbol shortly thereafter.
At the time of this publication, Envoy Medical Inc stock (COCH) has witnessed a surge.
Envoy Medical Inc
Current Price: $1.39
Change : +0.26
Change (%): (23.01%)
Source: Tomorrow Events Market Data
Special Purpose Acquisition Corporations (SPACs) like Anzu are essentially blank check companies that go public to raise funds with the intention of acquiring or merging with an operational business. This process results in the second company becoming publicly traded, as in the case of Envoy.
Envoy is currently in the developmental stages and is awaiting approval from the U.S. Food and Drug Administration to commercialize its Acclaim cochlear implant. This innovative implant is designed for patients with severe hearing loss who do not find relief through conventional hearing aids. Unlike standard cochlear implants, which require users to wear an external sound processor behind the ear, Envoy’s Acclaim aims to be the first-ever fully implanted device of its kind.
CEO of Envoy Medical, Brent Lucas, expressed optimism about the company’s listing, anticipating that it will facilitate the raising of additional capital. Lucas revealed that discussions with Anzu regarding a potential deal began in November of the preceding year. In 2022, Envoy initiated an early feasibility study in partnership with the Mayo Clinic for the implant.
Lucas stated, “In the coming quarters, we anticipate being able to report key milestones in our ongoing clinical trial at the Mayo Clinic and our planned pivotal trial at several of the premier cochlear implant centers in the United States.”
However, it’s worth noting that a prospectus filed with the U.S. Securities and Exchange Commission in September outlined potential risks for investors. It highlighted that Envoy has generated limited revenue from product sales and may face challenges in achieving profitability.
The company is bracing for significant expenses related to its ongoing clinical trials, and it reported a net loss of $15.9 million in 2022.
In summary, Envoy Medical Corp.’s recent merger and subsequent listing on the Nasdaq exchange mark significant milestones for the company. With the Acclaim cochlear implant in development, Envoy is poised to make strides in the field of hearing technology pending FDA approval. Despite potential challenges outlined in its prospectus, the company’s leadership remains optimistic about its future prospects.