Philips shares dive as FDA calls for more testing on recalled devices

By Steve Goldstein

Shares of Philips slumped Friday after the U.S. Food and Drug Administration said it wants more testing on sleep and respiratory care devices, following the recall of millions of devices.

Philips shares (NL:PHIA) (PHG) dropped 9% in Amsterdam trade.

The recall, which has slammed the company's stock in 2021 and 2022, was over the foam that can potentially break down and be swallowed by users. "The FDA remains unsatisfied with the status of this recall, and we continue to take steps to protect the health and safety of individuals using these devices," said a statement from the director of the FDA's Center for Devices and Radiological Health, Dr. Jeff Shuren.

"We do not believe that the testing and analysis Philips has shared to date are adequate to fully evaluate the risks posed to users from the recalled devices."

The FDA said it wants additional testing on the risk posed by the people who used the recalled devices. Philips said it's still in talks with the FDA on the details of the further testing.

Heading the other direction was insurer Aviva (UK:AV), which saw its shares jump 9% after The Times of London said there was talk that a foreign buyer could buy it. Shares of another U.K. insurer, Legal & General (UK:LGEN), rose 3%.

The broader European stock market was advancing after U.S. stocks bounced off their worst levels on Thursday, ahead of the crucial nonfarm payrolls report on Friday. The U.K. FTSE 100 UK:UKX rose 0.3%, the German DAX DX:DAX rose 0.6% and the French CAC 40 FR:PX1 rose 0.5%.

-Steve Goldstein

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10-06-23 0455ET

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