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Philips Stock Falls After FDA Warning About Its Sleep Apnea Machines

November 29, 2023
in Business
Philips Stock Falls After FDA Warning About Its Sleep Apnea Machines
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Topline

Shares of Dutch electronics and health giant Philips saw a major slump on Thursday after the Food and Drug Administration published a warning about a safety issue with the company’s sleep apnea machine on Wednesday night.

Facade with logo and sign at the regional headquarters of technology company Philips.

Getty Images

Key Facts

Philips’ Amsterdam-listed shares fell to $20.4 (€18.6) in afternoon trading, down nearly 5% on the previous day.

The company’s New York-listed shares were down more than 3.7% to $20.4 in pre-market trading.

The FDA’s warning covers Philips DreamStation 2 Continuous Positive Airway Pressure machine, used by patients suffering from sleep apnea.

The health regulator urged patients and health care professionals to closely monitor the machine for “signs of overheating.”

The agency said the warning is in response to 270 medical device reports “associated with thermal issues such as fire, smoke, burns, and other signs of overheating,” while using the DreamStation 2.

Crucial Quote

In a statement, the company said it is “in discussions” with the FDA about the reports. The company said it had reviewed and analyzed the reports in question, adding: “The devices can continue to be used provided that the safety instructions in the instructions for use for the DreamStation 2 sleep therapy device are followed.”

Key Background

This is the latest safety issue to impact Philips’ CPAP machines, which had previously been recalled due to concerns about a foam component in its build. The 2021 recall included the predecessor to the DreamStation 2 after it was discovered that a foam component on these machines had the potential to degrade into small particles that could be inhaled by the user. The company warned at the time the particles may be toxic and cancer-causing.

Further Reading

Philips Recalls Up To 4 Million Ventilators And Breathing Machines, Including Some Listed As Respiratory Treatments For Covid-19 (Forbes)

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Forbes – https://www.forbes.com/sites/siladityaray/2023/11/29/philips-stock-falls-nearly-5-after-fda-issues-safety-warning-about-its-sleep-apnea-machines/

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