First Read: European MedTech "VA update delivers yet more evidence of Ze..."

Research evidence excerpt

First Read: European MedTech "VA update delivers yet more evidence of Ze..."

Global Research

10 June 2026ab

First Read

EquitiesEuropean MedTech

VA update delivers yet more evidence of Zeal Europe including UK

momentum Healthcare

Kavya Deshpande

Analyst

kavya.deshpande@ubs.com

Latest VA data underpins our Zeal thesis +44-20-7567 8515

US Veterans' Affairs (roughly c.20% of total market) released May sales data this Graham Doyle

morning. This marks the first month in which Demant's new ITE product Oticon Zeal has Analyst

been sold in the VA, and the data suggests a strong reception with $2.2m of sales. This graham.doyle@ubs.com

takes Demant's share of channel value to 22.4% - its largest ever - up from 18.8% in +44-20-7568 2587

April. The+360bp share gain is the largest sequential uplift for Demant in 3 years, and Thyra Lee

comes despite a premium price of $695 (vs. $530 for Sonova's rechargeable ITE product Analyst

Virto R). Overall, we believe the data underpins our thesis that Zeal offers platform-like thyra.lee@ubs.com

competitive advantages that go beyond a regular form-factor launch through its +44-20-7568 0083

potential to expand its category and lower barriers to adoption.

How does everyone else fare?

Overall, the channel value declined 4% in May but on a tough comp of 8%. Sonova, the

largest player in the VA, lost 160bp of share (54.2% -> 52.5%), and management had

previously flagged at FY results that it expected some normalisation following the

entrant of a new competitor in this channel. GN lost 110bp of share, Starkey -120bp,

and WSA +30bp.

Figure 1: VA sales data - Zeal drives +360bp

shareSource:department.va.gov

How will investors react?

Positive. Although the Zeal-driven 3% Q1 topline beat drove excitement over the new