1 Sept 2021
Philips to Start Repairing and Replacing their Ventilators
The Index Today
The Dutch health technology company known as Philips would start repairing and replacing millions of their respiratory devices placed in the United States and most of its other markets this month, to address the potential health risks caused by their current machines.
Based on data, Philips already recalled up to four million of its respiratory devices and ventilators, as it said the foam part inside the machine can degrade and become toxic which could potentially cause cancer.
Philips received authorization from the U.S. Food and Drug Administration (FDA) for the repair and replacement of the affected DreamStation device, allowing it to change the sound abatement foam with new material.
More than half of the affected machines have been sold in the U.S. alone and the full replacement effort will take about a year to finish, Philips said.
Philips shares have already lost about 15% of their share value since the start of the recall, as investors fear the possible costs of a number of lawsuits that have been filed over this issue.
Philips mentioned that they set aside 500 million euros which is around $590 million, as the budget for the recall operation in the first half of this year.
($1 = 0.8478 euros)