One of Australia’s business success stories has had 40 per cent of its value wiped in a single day.

Cochlear on Wednesday suffered its worst share plunge on record after it released downgraded profit guidance, indicating it would make $170million less than expected.

The company, founded in the early 1980s, makes medical implants that restore hearing and holds about 50 per cent of that market. 

It blamed the sobering profit forecast on changes to Medicaid in the United States, which was heavily slashed under Donald Trump’s One Big Beautiful Bill Act.

Compounding the problem, the company also said tensions caused by the Iran War were lowering demand in the Middle East region.

While in Europe, hospital shutdowns, strikes and lengthy waiting lists were damaging that market.  

According to the Congressional Budget Office, Trump’s bill effectively removed health insurance for 10million people, with the $500billion in savings that would provide going to fund tax cuts.

Cochlear CEO Dig Howitt said the company’s hearing devices were still not considered medical necessities in some countries, notably the US, and were left off healthcare funding.

Cochlear CEO Dig Howitt said he remained confident the company would bounce back

The Australian firm pioneered hearing implant technology

Donald Trump slashed Medicaid funding in the US, a major market for the company

‘Addressing hearing loss in adults and seniors continues to be treated as a discretionary intervention, highlighting the importance of our strategy to medicalise hearing loss so that treatment is recognised as an important health priority,’ he said.

‘We remain confident of our market leadership. The clinical need for cochlear implants continues to grow, particularly for the adult and seniors segment.’