Philips: US ventilator contract to end this month
(CercleFinance.com) - Philips' contract with the US Department of Health over the delivery of tens of thousands of hospital ventilators will end this month, the company said on Monday.
The Dutch health-technology group said it has received notice of the partial termination of the deal, that was first announced in April, to supply 43,000 bundled EV300 ventilators through December 2020.
Philips will complete its deliveries this month, with a total of 12,300 ventilators supplied, meaning that the company will not provide the remaining 30,700 ventilators.
Philips' contract was one of several contracts that the Department of Health announced this spring, in the midst of the Covid-19 pandemic, for the production and delivery of over 156,000 ventilators.
"The ventilators contract significantly strengthened the growth of the connected care division," Invest Securities analysts said in a research note.
"The drastic reduction in the US order will impact its financial performance even though the group continues to anticipate a return to growth and profitability in the second half of the year," the Parisian broker added.
The Philips share was down 1.4% on Euronext Amsterdam after this announcement.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The Dutch health-technology group said it has received notice of the partial termination of the deal, that was first announced in April, to supply 43,000 bundled EV300 ventilators through December 2020.
Philips will complete its deliveries this month, with a total of 12,300 ventilators supplied, meaning that the company will not provide the remaining 30,700 ventilators.
Philips' contract was one of several contracts that the Department of Health announced this spring, in the midst of the Covid-19 pandemic, for the production and delivery of over 156,000 ventilators.
"The ventilators contract significantly strengthened the growth of the connected care division," Invest Securities analysts said in a research note.
"The drastic reduction in the US order will impact its financial performance even though the group continues to anticipate a return to growth and profitability in the second half of the year," the Parisian broker added.
The Philips share was down 1.4% on Euronext Amsterdam after this announcement.
Copyright (c) 2020 CercleFinance.com. All rights reserved.