Tag: CPAP recall

AMSTERDAM – The largest share of the workforce reductions at Philips will likely take place in the United States, says CEO Roy Jakobs.  Overall, the company plans to reduce its workforce by about 4,000 roles globally, resulting in savings of about EUR 300 million annually.  “We will have to wait and see the impact across operations, but, of course, you will see that the highest impact is in our top four markets in terms of employee base, which would be the U.S. on top,...

  SAN DIEGO – ResMed’s card-to-cloud CPAP device, launched earlier in 2022, provided “meaningful growth” for the first quarter of the company’s fiscal year 2023, said CEO Mick Farrell.  The AirSense 10 card-to-cloud device is one of the company’s workarounds for pumping product into the market amid a competitor’s recall that has significantly increased demand and supply chain challenges that have limited the supply of semiconductor chips,...

AMSTERDAM – Philips will reduce its workforce by about 4,000 roles globally, the company announced as part of its third quarter financial results. The immediate restructuring actions will result in EUR 300 million in charges in the coming quarters but will save EUR 300 million annually. “My immediate priority is to improve execution so that we can start rebuilding the trust of patients, consumers and customers, as well as shareholders and other stakeholders,” stated Roy Jakobs,...

PITTSBURGH – Philips is still in talks with the U.S. Department of Justice on a consent decree to resolve identified issues related to its recall of certain CPAP devices, company officials said during an Oct. 12 conference call with analysts to preview its financial results for the third quarter.  The consent decree is among the reasons the company said it will record a EUR 1.3 billion non-cash charge in the third quarter to address revisions to the financial forecast of its Sleep &...

NEW YORK – HME providers saw a 6.3% decline in their sleep patient volume in the last 12 months, but they expect double-digit growth in the next 12 months, according to the third quarter HME Sleep and Oxygen Survey from Needham.  The decline in sleep is mainly due to a shortage in flow generators. The eventual re-entry of Philips into the flow generator market appears likely to come mostly at the expense of smaller competitors rather than ResMed, according to the survey.  Respondents...

YARMOUTH, Maine – CPAP providers are seeing a slow rebound in business as a chokehold on orders for devices eases up, but they continue to see increased costs.  For more than a year, providers have juggled the challenges of a recall of certain CPAP devices by Philips and a subsequent shortage of available devices on the market with overall supply chain challenges affecting all manufacturers.  “Looking at my numbers from April to August, we’ve set up more CPAPs during...

We recently loaded the HME Databank (www.hmedatabank.com) with 2021 data, something I’ve been keen to look at to see the impact of current dynamics in the industry, including the COVID-19 pandemic and a major CPAP recall. Let’s start with the pandemic. While we were putting together this issue, Invacare released its second quarter financial results and company officials said they expected to see reduced COVID-related demand for respiratory products in the next several quarters,...

AMSTERDAM – Roy Jakobs is expected to take the helm at Philips, succeeding Frans van Houten as CEO.  Van Houten is nearing the end of his third term as CEO.  "It has been both a privilege and a pleasure to lead the transformation of Philips, over the past 12 years, into one of the largest health technology companies in the world, bringing innovative solutions to help our customers deliver on the Quadruple Aim of better health outcomes, higher healthcare productivity and much...

SAN DIEGO – Mick Farrell’s tone has shifted slightly when it comes to ResMed increasing its market share amid a major competitor’s recall.  During a conference call to discuss the company’s fourth quarter and fiscal year 2022 financial results, the CEO said he no longer looks at it as “incremental or temporal.”  “This is permanent share taking,” he said. “We’re going to go in, we’re going to get share and we’re...

AMSTERDAM – Comparable sales for the Connected Care business at Philips decreased 13% in the second quarter of 2022, mainly due to the consequences of a major recall and supply chain headwinds.  The company says it is making progress on the recall, producing more than 3 million replacement devices and repair kits to date.  “Philips Respironics aims to further increase capacity and complete around 90% of the production and shipments to customers in 2022,” the company...