HHS Bails Out Of Contract With Royal Philips To Make Ventilators
The US HHS has partially terminated a deal it made in April with Philips to manufacture 43,000 medical ventilators. The contract had been worth a whopping $646.7m.
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COVID-19 business volatility continues to impact the medtech industry, but Royal Philips is targeting modest comparable sales growth for 2020 after posting quarterly growth of 10%.
A new House subcommittee report – based on documentation from Philips – says the Trump administration fumbled ventilator contracts with the company, leading to delays and overpayments of roughly half a billion dollars.
Philips reported $4.97bn in sales for the second quarter of 2020, a 6% decline compared to the second quarter of last year. While the pandemic slowed down demand across the business, Philips connected care business increased by 14% due to demand for respiratory devices.