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U.S. scraps Philips ventilator order in 2020 earnings blow
Source: Reuters
BUSINESS NEWS AUGUST 31, 2020 / 2:37 AM / UPDATED AN HOUR AGO
U.S. scraps Philips ventilator order in 2020 earnings blow
AMSTERDAM (Reuters) - Philips (PHG.AS) said the U.S. Department of Health had cancelled most of an order for 43,000 ventilators, leading the Dutch medical equipment maker to cut its 2020 earnings outlook.
The termination follows a July report by the U.S. Congress House Subcommittee on Economic and Consumer Policy that found the White House had overpaid Philips by at least $500 million. Philips denied any profiteering on ventilators.
Philips was one of several firms contracted by the U.S. to supply 187,000 ventilators to the strategic national stockpile to treat patients affected by COVID-19.
It expanded capacity in Pennsylvania and California to meet sudden demand but said in a statement on Monday that it will now deliver just 12,300 hospital ventilators by the end of the year to the U.S. Department of Health and Human services.
A spokesman said he expected Philips will find other buyers for the 30,700 excess ventilators.
-snip-
U.S. scraps Philips ventilator order in 2020 earnings blow
AMSTERDAM (Reuters) - Philips (PHG.AS) said the U.S. Department of Health had cancelled most of an order for 43,000 ventilators, leading the Dutch medical equipment maker to cut its 2020 earnings outlook.
The termination follows a July report by the U.S. Congress House Subcommittee on Economic and Consumer Policy that found the White House had overpaid Philips by at least $500 million. Philips denied any profiteering on ventilators.
Philips was one of several firms contracted by the U.S. to supply 187,000 ventilators to the strategic national stockpile to treat patients affected by COVID-19.
It expanded capacity in Pennsylvania and California to meet sudden demand but said in a statement on Monday that it will now deliver just 12,300 hospital ventilators by the end of the year to the U.S. Department of Health and Human services.
A spokesman said he expected Philips will find other buyers for the 30,700 excess ventilators.
-snip-
Read more: https://www.reuters.com/article/us-philips-us-ventilators/u-s-scraps-philips-ventilator-order-in-2020-earnings-blow-idUSKBN25R0P6
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