Citing independent tests, Philips (NYSE:PHG) (OTCPK:RYLPF) said Tuesday that unauthorized cleaning products were almost exclusively to blame for issues that prompted the Dutch medical device maker to recall certain ventilator products last year.
ADRs of Philips (PHG) sold off when the company announced the recall of millions of ventilator machines last year amid concerns that foam used in the devices could deteriorate and become toxic.
The tests showed that “foam degradation was very rare” and associated with “aggressive, unauthorized ozone-based cleaning products,” Reuters reported, quoting Chief Executive Frans van Houten.
“Results to date also indicate that ozone cleaning significantly exacerbates foam degradation,” Philips (PHG) added in a statement citing the tests conducted by five certified, independent testing laboratories in the U.S. and Europe.
“Inspection of over 60,000 machines in the U.S. has shown foam degradation in less than 0.5% of the machines users said had not been cleaned with ozone,” according to Houten, who added that the incidence jumped to 7% or 14 times higher with the use of ozone products.
“The correlation between the use of ozone and foam degradation that we assumed last year has been proven,” Houten noted.
Earlier this month, Philips (PHG) ADRs slumped after UBS downgraded it, citing the impact of product recall.