The problem of sleep apnea continues to haunt Phillips, but the CEO does not doubt his condition
Philips suffers from a number of problems in the supply chain: Raw materials and other materials are difficult to obtain. But the Dreamstation Philips is a machine used by patients who are awake and have sleep apnea.
Harm to health
That machine can cause health hazards to users. Breaking the foam that covers the machine and inhaling those particles can cause cancer, although early test results show that the device can be used safely, according to Phillips. .
However, patients are concerned and legal action has been initiated. More and more investors are nervous.
In an interview with RTL Z, Phillips CEO Frans van Houten said it was unclear what the potential costs of the lawsuit would be. Phillips has already set aside three times to refund the machines. 250 million euros in April 2021. A further மில்லியன் 250 million in July. Another 225 million euros a week and a half ago.
Did you find that the best way to approach this problem is to add money?
“We are busy planning to reach as many patients as possible in the world. Five million patients have already responded. We want to help these patients with a repaired device. It needs more money.”
“You can not book more money than you knew at the time, so there are many unavoidable steps. As we reached more patients we had to adjust that amount. We are making good progress now. Delivering repaired and new equipment.”
How did Phillips underestimate this problem?
“If you’ve been manufacturing products for many years, you can not say for sure how many more products are in active use with patients and how many have been replaced. We have been manufacturing since 2008, so there is a long history. Behind that.”
“Some patients get a new product after five years. Other patients can use the product for ten years. We do not fully know how many more patients work on those machines every day. Now we know.”
Since when do you personally know about problems?
“Before the announcement. So we took immediate action as soon as it became known locally.”
What is the first quarter of 2021?
“Exactly, I’ll face this in the first quarter of 2021.”
I also ask this question because I am in the FDA Recently published report He concludes that ‘management with management responsibility’ was already aware of the issues in January 2020. So you did not join there?
“Surveillance in the United States refers to the management of the Philips Responix business division in Pittsburgh.”
What happened to them?
“Those people are gone now.”
Is this a direct result of these problems?
“Let’s say there’s a different administration now.”
It is also a lingering problem with pending cases against patients. Initial studies show that the device is safe to use, but a group of patients are concerned and are taking legal action. How do you see these cases?
“I begin by saying that I understand patients’ concerns, especially since not all information is available at first, and people rely heavily on this device. We do everything we can to provide solutions as quickly as possible, but I’m glad the early test results were helpful to those patients.”
“Legal aspects take time. Of course many lawyers have appeared, especially in the United States. This is not uncommon. I do not expect to be able to say more about this until 2023. For now, we are focused on helping everyone. Patients first.”
Can you give an estimate of the costs of those cases?
“No, I can not. We have not issued any statement on that right now.”
Investor criticism of you is on the rise. Are you still the right man in the right place?
“Of course, I do not deal with that kind of speculation. At Philips, we, 80,000 employees, are focused on helping our customers and achieving the best results.”
Low profit for Philips in the fourth quarter of 2021
Problems with Philips’ sleep apnea devices have had a major impact on the profits of the Healthcare Technology Group. Philips ended the year with a profit of 612 million euros in continuous operations. It was 999 million euros a year ago. Problems with sleep apnea equipment cost the company 719 million, with no legal costs calculated. The company has not yet commented on the latter.
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