Wall Street Journal: Dutch healthcare giant now expects recall to affect around 5.2 million CPAP devices, says supply-chain woes have weighed on sales.
Royal Philips NV expanded the reach of its already huge recall of breathing-aid machines and said supply-chain strains would hit fourth-quarter sales, sending shares down 15%.
The Dutch healthcare giant initiated a recall last year of certain sleep-apnea and ventilator machines amid concerns that a type of foam used in the devices could degrade and release harmful, possibly cancer-causing particles. At the time it estimated the recall would affect 3 to 4 million devices but on Wednesday it raised that estimate to 5.2 million devices world-wide. That is because it has widened the scope of the recall to include older devices after receiving requests from customers for replacements or repairs for them.
