Investing.com – ResMed (NYSE:
RMD
) Shares rose more than 4% on Monday after rival Philips (NYSE:
PHG
) to recall certain ventilators and ventilators because of concerns that they could harm patients.
Needham & Company analyst Michael Matson (NYSE:
MATX
) said Philips’ problems could benefit ResMed. Needham has a buy rating on the stock with a target of $ 229. The stock hit a high of $ 229.17 in today’s session.
Philips shares fell over 4% today after a decision to voluntarily recall Bi-Level Positive Airway Pressure, Continuous Positive Airway Pressure and mechanical ventilators .
A certain type of foam, polyester-based polyurethane, is used to dampen the noises made when using these devices.
According to Philips, the PE-PUR foam can break down into particles, which enter the airways of the device and can be ingested or inhaled by the user, and the foam can outgas certain chemicals.
The foam breakdown can be increased by unapproved cleaning processes. Environments with high heat and high humidity can also contribute to the breakdown of the foam, the company said in a note.
Philips will replace the previous soundproof foam with a new material and has already started preparations, including obtaining the appropriate regulatory approvals , has begun.
The company has advised patients to consult their physician before taking action and to weigh the risks of continuing therapy and the risks identified in the recall notice.
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