Philips (AMS:PHIA) shares fell in Monday’s trading after announcing what’s described as a multi-year halt to its US sales of new sleep apnoea devices.
The halt is part of a settlement with the US Food and Drug Administration (FDA) following a device recall in 2021 after ventilators and breathing aids were found to contain a foam designed for noise-reduction which was deemed potentially harmful.
Philips also agreed to undertake improvements to its plants in the United States, to comply with FDA standards. It added that it had set aside €363 million to cover the costs related to the agreement – representing around 1% of its total revenues in 2024.
In Amsterdam, Philips shares (Koninklijke Philips NV) were trading down 7.16%, changing hands at €19.54 each.