Eargo Inc EAR shares are trading lower Thursday on possible profit taking after the stock surged on Wednesday after the U.S. Food and Drug Administration 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.
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.
See Also: Read How EHang Performed In Q2
EAR Price Action: Eargo has a 52-week high of $8.55 and a 52-week low of 67 cents.
The stock was down 18.7% at $2.55 at press time, according to Benzinga Pro.
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