Finance

Philips hit hard by problems with ventilators in the US

There have been problems with sleep apnea and ventilators from Philips for some time now. For example, the foam in the products could crumble and could be life-threatening.

Philips previously started a recall of no fewer than three to four million devices, for which it has already set aside 500 million euros.

But now there is a new setback. The US regulator FDA conducted an inspection at a Philips factory in the US and the FDA is not pleased with how Philips is handling things.

Test

For example, a test was conducted with devices recalled and repaired by Philips. This shows that these devices still do not meet the standards.

Philips is now required by the FDA to have an independent agency investigate whether this applies to all devices.

The FDA has even more to criticize about Philips. The company is said to have failed to show that other devices with foam do not need to be recalled. Also, the design procedures would not be adequate.

Clap at the fair

Not only are there the charges for recalls, there are also users who file lawsuits. This makes it a bad year for investors in Philips.

Last month, the group warned that sales and profits will be disappointing. At the beginning of April, the price of Philips was just above 50 euros, since then the price has mainly fallen.

For a while it seemed to recover, but today a new blow follows: the share today loses about 10 percent.

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