Philips office building in Warsaw, Poland on July 29, 2021.
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The company said it has set aside €982 million ($1.1 billion) to pay personal injury and medical monitoring claims, adding that the settlement will end litigation uncertainty for the company. It does not admit any fault or liability, or that any injuries were caused by its Respironics devices.
“Patient safety and quality are our top priority, and we have taken important steps in resolving the consequences of the recall of Respironics devices,” Philips CEO Roy Jacobs said in a statement.
“The treatment of patients with sleep therapy devices is almost complete, and test results to date show that the use of these devices is not expected to result in significant harm to health. We apologize for the concern that patients may feel.”
The allocation was less than the 2 to 4 billion euros that had been expected, according to Barclays analyst Hassan El-Wakil. He added that there are fears of obtaining 10 billion euros in the worst-case scenario.
The settlement is “a specified amount and ends the uncertainty of the litigation,” the agent said in a note Monday.
In September, Phillips Settlement of economic loss claims In the United States regarding the recall, it allocated an amount of 575 million euros ($615.7 million).
Monday's rebound lifted Philips shares to their highest level since March 1, 2022.
On Monday, the company also announced a loss of 998 million euros ($1.07 billion) in the first quarter. Meanwhile, adjusted earnings beat analysts' consensus expectations, according to Reuters, at 388 million euros for the quarter.
Sales fell slightly year-on-year, reaching €4.14 billion in the first quarter from €4.17 billion in 2023.
