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Philips takes stock hit on profit warning, recall

por Thomas Dworetzky, Contributing Reporter | January 14, 2022
Business Affairs

In June, two other devices were recalled — its V60 and V60 Plus ventilators — when they were found to pose a risk of reducing oxygen flow to patients in certain situations.

“The extended recall is a major negative, as this also extends the litigation risk,” ING analyst Marc Hesselink said, according to Reuters.

The litigation costs could prove substantial. Philips now faces more than one hundred class-action suits, according to the financial news agency.

Other supply chain shortages and snafus, especially in electronics and chips, also hurt the company.

“We faced significantly intensified global supply chain issues across our businesses, in addition to customer postponement of equipment installations in hospitals. We are closely working with suppliers and governments to address the shortages in the healthcare supply chain and ensure they recognize the importance of prioritizing lifesaving medical equipment,” van Houten noted.

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