Eargo Inc (NASDAQ: EAR) shares are trading higher Wednesday after the U.S. Food and Drug Administration on Tuesday issued a final rule to improve access to hearing aids.
"This action establishes a new category of over-the-counter (OTC) hearing aids, enabling consumers with perceived mild to moderate hearing impairment to purchase hearing aids directly from stores or online retailers without the need for a medical exam, prescription or a fitting adjustment by an audiologist," the FDA said in a statement.
The improved access is also expected to lower hearing aid costs. The rule is designed to assure the safety and effectiveness of OTC hearing aids, while encouraging innovation and competition in the hearing aid market.
"Today’s action by the FDA represents a significant milestone in making hearing aids more cost-effective and accessible," said Xavier Becerra, secretary of health and human services.
Eargo is a medical device company focused on improving the quality of life of people with hearing loss through hearing aids, professional support services and other insurance-related services.
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EAR Price Action: Eargo has a 52-week high of $8.55 and a 52-week low of 67 cents.
The stock was up 42.3% at $2.88 at press time, according to Benzinga Pro.
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