The value of a Philips share fell sharply on Wednesday morning. Investors are shocked by the new warning about its sleep apnea devices that the company received from the American regulator. At 10 a.m., Philips’ share price had fallen more than 6 percent.
The American regulator FDA issued a new warning on Tuesday about overheating of the sleep apnea device DreamStation 2.
The warning follows a period of more than two years in which Philips had to recall millions of DreamStation 1 sleep apnea devices. The company did this because the insulation foam of the device could possibly come loose.
The recall cost Philips a lot of money and damaged the company’s reputation.
The DreamStation 2 was not included in those recalls. Some of the users of recalled sleep apnea devices received a DreamStation 2 as a replacement.
The FDA has seen a sharp increase in reports of problems with the device since August. This concerns more than 270 reports, the FDA said in a statement on Tuesday. This includes reports of fire, smoke, burn marks and other signs of overheating.
According to Philips, these reports came over a three-year period, but the company only recently submitted them to the FDA.