Philips announced that it will no longer sell new sleep apnoea devices in the United States. This news came out with the publication of the healthcare technology company’s quarterly and annual results. The company reached a settlement with the US medical regulator FDA, which resulted in a charge of 363 million euros last quarter.
Why you need to know this:
Philips is a leading company when it comes to innovative healthcare technologies. The decisions the company makes affect the healthcare sector in the Netherlands and abroad.
Respiratory equipment
Philips Respironics will stop selling 19 sleep and breathing products in the US. The decision follows warnings from the US Food and Drug Administration last November about possible problems with Philips DreamStation 2 CPAP devices that could overheat. There have also been recalls and a lawsuit. The settlement with the US medical regulator FDA resulted in a €363 million charge for the company last quarter. In the settlement with the FDA, Philips admits no fault or liability. A final version of the settlement is currently being drafted.
Other challenges
In addition, Philips faces other challenges. Geopolitical uncertainties, including the current situation in Israel, may also affect Philips’ results of operations and financial position.
Strong annual results
Nevertheless, Philips had a successful year with sales of EUR 18.2 billion in 2023, of which EUR 5.1 billion in the fourth quarter. The company achieved 7% growth compared to the previous year.
Roy Jakobs, CEO of Royal Philips, stressed that the strong 2023 results were due to, among other things, the three-year plan around value creation with sustainable impact. This focus is reflected in the growth of the various business segments. Notable was the performance of the Diagnosis & Treatment division, with revenue growth of 11%, driven by growth in Image Guided Therapy and Precision Diagnosis.
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