In an extremely competitive industry, there’s no room for error. Especially when it comes to products that directly affect human health. Unfortunately, one of the largest medtech manufacturers, Philips, has been struggling since the recall of the company’s Respironics Sleep and Respiratory devices. Will Philips recover from this massive set back? How are other medtech companies reacting to this news? If you find yourself seeking answers to the above questions, keep reading.
Which Philip’s Devices Were Recalled and Why?
Philips offers numerous medical devices, however, the devices in the most recent recall were the company’s CPAP, BiPAP, and Mechanical Ventilator devices. In terms of when this occurred, the company mentions that in June 2021 a problem was discovered with the foam in these devices and a voluntary Field Safety Notice was issued. The foam within these devices is a polyester-based polyurethane (PE-PUR) that reduces sound and vibration. However, many discovered that the foam can break-down, and, if this occurs, black pieces of foam can be inhaled by the user of the device which puts them at risk. In August of 2022, the FDA updated the safety communication for the recall and listed out the specific devices as provided below:
- A-Series BiPAP A30
- A-Series BiPAP A40 (ventilator)
- A-Series BiPAP Hybrid A30
- A-Series BiPAP V30 Auto (ventilator)
- C-Series ASV (ventilator)
- C-Series S/T and AVAPS
- DreamStation ASV
- DreamStation Go
- DreamStation ST, AVAPS
- Dorma 400
- Dorma 500
- Garbin Plus, Aeris, LifeVent (ventilator)
- OmniLab Advanced+
- REMstar SE Auto
- SystemOne ASV4
- SystemOne (Q-Series)
- Trilogy 100 (ventilator)
- Trilogy 200 (ventilator)
Philips mentions that the company aims to be finished with the repair and replacement program by December 2022.
How Are Other Competitors Dealing With This Recall?
According to iData, Philips Healthcare was the leading company in the anesthesia, respiratory, and sleep management device market. Philips primarily dominated the respiratory space with a strong presence in sleep apnea and ventilation. In terms of product offerings, Philips offers a non-invasive home care ventilator under the BiPAP® brand, a new Respironics®E30 ventilator, and several others. On the other hand, ResMed was the second-leading competitor in the anesthesia, respiratory, and sleep management device market. ResMed led the therapeutic obstructive sleep apnea device market with a notable presence in both the sleep therapy interface and PAP device segments.
In a note released today (October 26, 2022), William Blair analysts led by Margaret Kaczor stated that “players like ResMed and React Health (formerly 3B Medical) continue to gain share with Philips out of the market. While it is unclear how long Philips will be out of the market, we believe that providers will want to source from multiple providers going forward (including Respironics) though still see durable market share gains for other players.”
Perhaps this recall that is holding Philips back might be exactly what ResMed needed to finally surpass Philips and gain the leading market share position. If you find yourself wanting to better understand the competitive nature of the global anesthesia, respiratory, and sleep management device market – follow the link or submit a request through the button below to receive a complimentary executive summary.