Philips, a Dutch health tech company, saw its shares plummet on Friday, ending at the bottom of the European benchmark, following criticism from the U.S. drug regulator regarding its management of a significant product recall.
Listed in Amsterdam, Philips’ stock closed the day with a 7% decline, though it had dropped by as much as 10% earlier in the trading session.
This development marks another setback for Philips concerning the recall of millions of ventilators used for treating sleep apnea, a matter CEO Roy Jakobs previously identified as the company’s top priority this year.
The U.S. Food and Drug Administration (FDA) stated overnight that it views the testing and analysis provided by Philips thus far as insufficient for fully assessing the risks associated with the recalled devices.
The FDA emphasized the need for additional testing, which Philips has agreed to undertake as per the FDA’s request.
In response to the FDA’s remarks, Philips affirmed in a statement that its primary focus remains on patient health and well-being.
The company reiterated its commitment to replacing devices and conducting further testing to enhance clarity on the safety of the sleep and respiratory care products subject to the recall.
Furthermore, Philips emphasized its alignment with the FDA and other regulatory bodies in striving to uphold the highest standards of patient safety and healthcare quality.
