The Dutch company Philips has to recall faulty ventilators and loses at least half a billion euros.
There have been reports of harm to patients.
Amsterdam - Most people are familiar with the Philips brand from household appliances. It all started in 1891 with lightbulbs, then the company made radios, televisions, razors and electric toothbrushes. But today the core business is different: Philips recently sold the household appliances business to the Chinese investment fund Hillhouse Capital and is now focusing on medical devices and healthcare.
The recall hits the company all the harder.
These are various ventilators from the DreamStation product family.
During production, Philips used a noise-dampening foam that, according to recent findings, could break down into particles.
There is a risk that users will ingest or inhale these particles.
In addition, the particles could be toxic or even carcinogenic.
That comes from a report from the company.
Philips: There have been reports of damage - share price reacts
There are currently no known fatalities related to the manufacturing defect, however Philips has received reports of possible harm to patients.
Potential risks include headache, irritation, inflammation, nausea, vomiting, respiratory problems, and possible toxic and carcinogenic effects, the company explains on its side.
Initially, Philips set aside 250 million euros, but then increased this amount to 500 million euros.
This led to the largest price decline at Philips since the Corona crash in March 2020. At times, the share fell by 8.4 percent.
According to the
Wall Street Journal
, around three to four million machines are affected, around half of them in the United States.
The recall is restricted to the United States, with a safety alert for the rest of the world.
Philips: Partially life support ventilators affected
80 percent of the devices are used to treat sleep apnea.
With this health impairment, the breathing of the affected person stops during sleep, the Philips machines are supposed to support breathing.
The remaining 20 percent of the devices affected are life support ventilators.
Philips therefore warns in the press release against suspending the use of the devices without authorization.
Instead, those affected should consult a doctor and discuss whether the benefits outweigh the risks, recommends Philips.
"In consultation with the responsible supervisory authorities and in close cooperation with our customers and partners, we are working flat out on a solution that includes the use of updated instructions for use and a comprehensive repair and replacement program for the affected devices," said Philips boss Frans van Houten. The company is working on an update of the instructions for use, since the use of "non-approved cleaning methods such as ozone and an environment with great heat and high humidity" could promote decay. Consumers should generally not use a ventilator for longer than the specified warranty period of five years.