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Philips Look At the Impact of A Sleep Apnea Device Recall

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In the figures update from healthcare technology group Philips later on Monday, attention will be paid to, among other things, the issue of sleep apnea devices, which contain foam that can be hazardous to health.

 

In addition, the question is whether and how Philips can cope with problems in the supply chain.

Philips has already started repairing and replacing its sleep apnea devices in the United States. In total, this concerns 3 million to 4 million devices. Philips already set aside 250 million euros for the matter in the second quarter. However, according to experts, it is still too early to hear about the results of an independent investigation. A possible lawsuit can also incur costs for Philips.

Furthermore, Philips has so far managed to keep enough parts in stock for its devices, despite worldwide shortages. As a result, Philips will initially benefit from its scale. Healthcare companies are also often given priority in the delivery of components.

According to an estimate among analysts, Philips will have closed the quarter with almost 4.2 billion euros turnover. As a result, the profit is expected to amount to 236 million euros.

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