Monday, 22 July 2024
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Philips reduces losses and discontinues offering sleep aids in the US

  • Philips has declared that it will stop selling sleep machines in the US.
  • Since 2021, Philips has been dealing with several problems related to their DreamStation sleep apnea equipment.
  • With a profit of 38 million euros, the company turned a profit in the fourth quarter as well.

Philips, a Dutch manufacturer of medical devices, has declared that it will stop selling sleep machines in the US following a string of recalls that had an ongoing negative impact on performance.

In contrast to 2022, when it lost 1.6 billion euros, the corporation reported losses of 463 million euros for the entire year. According to CEO Roy Jakobs, advancements made in a turbulent world provide a strong basis for long-term success.

Philips

Since 2021, Philips has been dealing with several problems related to their DreamStation sleep apnea equipment. With US authorities, the company has reached a consent decree agreement that includes a “roadmap” of objectives to enable Philips to comply with regulatory obligations. In the US, Philips Respironics won’t market any new sleep therapy or respiratory care equipment unless all necessary conditions are satisfied.

The US Food and Drug Administration issued a warning in November about the potential overheating danger associated with the company’s new “DreamStation 2” sleep aid, which sparked the company’s most recent problems.

Reports of burns, smoke, fire, and other overheating symptoms from users of the equipment were sent to the FDA. The recall and contingency plans for potential lawsuits drove the company into the red in 2022 and resulted in the layoff of thousands of employees.

The company has been battling back financially, announcing better third-quarter earnings and sales, which led it to upgrade its full-year 2023 outlook. In the third quarter, it reported a net profit of 90 million euros ($95 million), up from a deficit of 1.3 billion in the same period the previous year. With a profit of 38 million euros, the company turned a profit in the fourth quarter as well.

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