Philips Announces $1.1bn Settlement over Sleep Apnea Device Cancer Risks, Shares Soar 33%

Philips’ shares surged by 33% on Monday following a $1.1bn settlement agreement reached with the US authorities over concerns related to cancer risks associated with some of its sleep apnea devices, which were recalled in 2021. The Dutch medical equipment company stated that it had made provisions worth €982m ($1.1bn) for settling personal injury and medical monitoring claims as part of this settlement deal. Philips CEO Roy Jakobs affirmed the company’s priority was patient safety, adding: “The remediation of sleep therapy devices is almost complete,” noting that initial tests revealed no appreciable harm to health from using these devices. The firm reported a loss of €998m ($1.07bn) in Q1 2023 but adjusted earnings comfortably surpassed the predictions provided by experts following reporting indicating slightly lower annual revenue levels, at €4.14bn for this quarter compared to €4.165bn generated a year previously according to Reuters analysis data