The problems with ventilators cost the Dutch medical technician Philips hundreds of millions. In addition, there could be costs from consumer lawsuits. An investigation now provides clues as to the cause of the problem.
The Dutch medical technology group Philips believes it has found the cause of a costly defect in millions of ventilators. An independent study of more than 60,000 devices used to treat sleep apnea in the United States points to the use of harsh, unapproved cleaning products as the cause, said CEO Frans van Houten. Philips had recalled 5.5 million ventilators after the foam used in them had dissolved and released toxic fumes in some cases.
Philips has set aside 900 million euros for the recall. It's half done. Investors also fear expensive lawsuits from patients. More than 100 class action lawsuits have already been filed.
The investigation revealed that the foam had dissolved in seven percent of devices that were cleaned with ozone-containing agents, said von Houten. With the other devices, this only happened in 0.5 percent of the cases - 14 times less often. This proves the connection with improper cleaning. That is "very encouraging". Now Philips wants to have it checked to see how toxic the decayed foam really is.
According to previous investigations, the crumbs have not escaped from the device. "The recall is far from over, but today's release gives hope that the health risks to patients were very low," analysts at ING wrote. The battered shares of the medical technology group continued to lose.
