Why Philips (PHG) Shares Are Falling Today - Koninklijke Philips (NYSE:PHG)

The FDA said reports of faulty Koninklijke Philips NV's (NYSE:PHG) ventilators and sleep apnea machines had risen in the past quarter.
The company recently announced that Roy Jakobs is proposed to succeed Frans van Houten as President & CEO, effective October 15.
The FDA said that it had received 48,000 reports associated with breakdown or suspected breakdown in the foam used in Philips respirators over the three months ending July, more than twice the number of such reports it received between April 2021 and April 2022.
Related Content: Philips' Ventilator Woes Continue With Another FDA Class I Recall.
"A wide range of injuries have been reported in these (reports), including cancer, pneumonia, asthma, other respiratory problems, infection, headache, cough, difficulty breathing, dizziness, nodules, and chest pain," the FDA said.
A spokesperson for Philips said the timing of the FDA update and that Philips announced longtime CEO Frans van Houten would depart the company -- was coincidental.
The FDA ordered Philips in March to notify patients of the recall, saying its communication until then was "inadequate."
Philips has estimated costs of its replacements at around €900 million, but that does not include costs from a possible settlement with the U.S. Department of Justice or consumer injury lawsuits.
Price Action: PHG shares are down 5.30% at $19.50 on the last check Wednesday.
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