On Monday, Philips reported lower-than-expected annual results for 2023 and a ban on sales of its sleep therapy and respiratory care devices in the US, announcements that sent its share price down 5% on the Amsterdam stock exchange.

The Dutch healthcare giant explained this morning that it had entered into a 'consent decree' with the US Department of Justice, on behalf of the FDA, setting out a clear roadmap for demonstrating compliance with regulatory requirements.

Until these measures are satisfied, Philips will not be allowed to market any new sleep therapy or respiratory care devices in the US.

At around 9.40 am, the share price was down by around 5%, by far the biggest fall in the AEX index on Euronext Amsterdam.

The stock had already fallen by almost 75% between mid-2021 and mid-2022, following the appearance of particulate matter emissions on its respiratory equipment, deemed likely to cause harm to patients' health.

Philips also announced sales of 18.2 billion euros last year, representing organic growth of 7%, against a consensus target of 18.5 billion.

Its operating profit, however, showed a loss of 115 million euros for the year, notably taking into account a provision of 363 million euros linked to the agreement reached with the US authorities.

For 2024, the Group forecasts organic growth of 3% to 5%, with an adjusted Ebita margin of between 11% and 11.5%, compared with 10.5% last year.

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