CPAP recall: Philips faces financial backlash

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Sleep Treatments | Sleep Review

By Lisa Spear

One of the world’s largest manufacturers of respiratory medical devices, Philips, suffered a significant financial slump in the last quarter with a year-on-year sales decline of 7.6 percent.

In June, the company issued a recall on CPAP and ventilators over concerns that some kind of foam in the devices could dissolve and release dangerous, potentially carcinogenic particles. The recall affected between three and four million patients and resulted in Philips looking for new materials at a time when the global supply chain was already disrupted by the pandemic, according to a recent financial report.

“This quarter’s revenue was adversely impacted by exacerbated global supply chain issues such as the lack of electronic components and the expected revenue impact of sleep recall as we prioritize the remediation of affected devices used by patients,” said Frans van Houten, Philips CEO , in a written statement.

[RELATED: Sleep Professionals Scramble to Find Solutions for Sleep Apnea Patients Amidst Philips Device Recall]

Philips is also facing multiple class action lawsuits and individual personal injury claims from patients who used the affected devices. However, the company said it was unable to reliably estimate the financial implications of these legal challenges.

Since the recall, Philips has made a total of around 750,000 repair kits and replacement devices, but less than half of them have not yet reached patients. Nevertheless, the company management promises to work flat out to reach those affected.

“The sleep recall notification repair and replacement program is ongoing in the US and several other markets,” said Van Houten. “I am aware of the impact this has on patients and caregivers, and we are doing everything we can to provide a solution as soon as possible.”

Lisa Spear is co-editor of Sleep Review.

Image credits: ID 216178510 © Hcazenave | Dreamstime.com



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