Philips climbed on Wednesday morning after details of an agreement with the US over its sale of potentially dangerous breathing devices in 2021 were revealed.
Millions of the devices have already been recalled over fears that foam used to reduce noise could break down and become toxic and potentially cause cancer.
Philips said on Wednesday that 99% of CPAP and BiPAP sleep therapy devices in question had now been repaired, with recalls of ventilators ongoing.
These repairs will continue, while Philips is allowed to continue servicing devices already in operation, including through selling replacement parts, under the deal, known as a consent decree.
New devices will not be allowed to be sold, however, with Philips having stopped selling these in 2021.
Philips agreed the consent decree with the government in January, adding at the time that a provision of €363 million (US$394 million) had been made to cover this in the fourth quarter.
According to the Food and Drug Administration, 561 deaths have been reported since 2021 relating to the use of recalled devices.
“With the agreement on a consent decree for Philips Respironics in place, we now have a clear path forward to gradually restore the business, serving patients around the world,” chief executive Roy Jakobs commented.
Amsterdam-listed shares climbed 3% on Wednesday morning.