Philips sets aside €575mn for medical device litigation costs

Dutch health technology company Royal Philips has set aside €575mn to cover possible litigation costs in the US related to the recall of 5.5mn faulty medical devices.

Philips Respironics, a subsidiary, is facing lawsuits over a faulty component in devices that help people suffering from sleep apnoea to breathe. It has set aside more than €1.1bn to cover the costs of the recall.

Philips on Monday reported a better than expected 47 per cent jump in first-quarter earnings before interest, tax and amortisation to €359mn. Analysts polled by Bloomberg had expected €212mn.

Philips’ shares rose 10 per cent in early trading on the news. The share price has rallied 43 per cent since its recent low in November, but is 66 per cent off the high it hit in April 2021.