Benzinga | Aug 16, 2021 03:54PM EDT

Suffers' Lose Sleep After Philips' Recall Of Sleep Apnea Machine: WSJ

* Millions of Koninklijke Philips NV's (NYSE:PHG) CPAP machines and ventilators are under a recall posing severe health problems, as many people are having difficulties getting replacements.

* FDA handed down its Class I label, the most severe recall classification, for the recall.

* There is noise-canceling foam inside the machines that can break down, and those particles and gases from the foam can cause issues if inhaled.

* The prices of competing products from ResMed Inc (NYSE:RMD) have climbed and become scarce just two months after the recall, the Wall Street Journal reported.

* Philips has estimated that it will take about a year to repair the machines. Meanwhile, the price of ResMed's model has increased over 50% to $598.00 from $974.99 since the recall.

* Amid the shortage, some patients have resorted to buying used products while others, forced to address the safety concern themselves, continued to use the faulty product, the Journal reported.

* Philips' sleep division has devoted its entire manufacturing capacity to make replacement machines and is not taking any new orders.

* In its Q2 earnings release, Philips added (euro)250 million to a prior provision in relation to the recall.

* ResMed, Monday, launched AirSense 11, its next-generation PAP (positive airway pressure) device for sleep apnea.

* Price Action: RMD shares are up 1.85% at $280.18, while PHG shares are down 0.13% at $44.39 during the market session on the last check Monday.

* Photo via Wikimedia