Philips: stock dives after setback in US

(CercleFinance.com) - The Philips share is down sharply in Amsterdam on Monday following the US health authority's decision to request new expert reports on its ventilation systems, which are already the subject of a recall.


At around 2pm, the Dutch healthcare equipment specialist's shares were down about 10%, by far the biggest faller in the AEX index.

Following an inspection last week at the US site of its subsidiary Philips Respironics, the FDA decided to issue a so-called "483" form to the group after finding certain problems at the site.

The agency's observations concern the use of a silicone-based foam that failed a safety test for the release of certain polluting chemicals, known as volatile organic compounds (VOCs).

The FDA has asked Philips to have an independent laboratory conduct additional testing and determine what, if any, potential safety risks these products pose.

In its comments, the FDA also cited a recall of over 15 million sleep and homecare devices, while analysts had expected a recall of "just" three to four million devices.

For the record, Philips issued a recall of certain mechanical ventilation devices in June due to potential health risks associated with the soundproofing foam component.


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