Phillips Says Unauthorized Cleaners Linked to Faulty Fans (NYSE:PHG)

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Citing independent tests, Philips (New York Stock Exchange: PHG) (OTCPK:RYLPF) said on Tuesday that unauthorized cleaning products were almost exclusively responsible for the problems that prompted the Dutch medical device maker to recall certain ventilation products last year.

ADR by Phillips (PHG) sold when the company announced the recall of millions of ventilators last year over concerns that the foam used in the devices was deteriorating and becoming toxic.

Tests showed “foam breakdown was very rare” and associated with “aggressive and unauthorized ozone-based cleaning products”, Reuters reported, citing chief executive Frans van Houten.

“Results to date also indicate that cleaning with ozone significantly exacerbates foam degradation,” Philips (PHG) added in a statement citing testing by five certified independent test labs in the United States and Europe.

“Inspection of more than 60,000 machines in the United States showed foam degradation in less than 0.5% of machines that users said had not been cleaned with ozone,” according to Houten, who added that the incidence increased to 7% or 14 times higher with the use of ozone products.

“The correlation between ozone use and foam degradation that we assumed last year has been proven,” Houten noted.

Earlier this month, Philips (PHG) ADRs fell after UBS downgraded it, citing the impact of the product recall.

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