Philips details plans to increase its hospital ventilator production to 4,000 units/week by Q3 2020, and introduces its new P...
April 14 2020 - 7:00AM
April 14, 2020
- Philips engages manufacturing partners Flex Ltd. (NASDAQ: FLEX)
and Jabil (NYSE: JBL), as well as other partners, to further expand
its hospital ventilator assembly lines and strengthen its supply
chain
- Company introduces the Philips Respironics E30 ventilator, a
versatile and easy-to-use ventilator to treat patients with
respiratory insufficiency, designed for large scale production
- FDA authorized the Philips Respironics E30 ventilator for use
in the US during the COVID-19 public health emergency through its
EUA process on April 8, 2020; Philips is working with the relevant
regulatory authorities to also distribute the device globally
- Philips continues to work with its global suppliers to ensure a
sufficient and uninterrupted supply of components. This is the
rate-limiting step, and requires the support of all countries
involved
Amsterdam, the Netherlands – Royal Philips
(NYSE: PHG, AEX: PHIA), a global leader in health technology, today
provided an update on its plans to double the production of its
hospital ventilators by May 2020 and achieve a four-fold increase
by the third quarter of 2020. This plan builds on Philips’ initial
production increase in the first three months of the year, which
already enabled the supply of additional ventilators – that are
critical for the treatment of COVID-19 patients – to hospitals in
the most affected regions in China, southern Europe and the US. To
further address the huge global demand, Philips introduced its new
Philips Respironics E30 ventilator, a versatile and easy-to-use
non-invasive and invasive ventilator, which has been designed for
large scale production.
“In line with Philips’ mission, we are fully committed to
helping as many healthcare providers as possible diagnose, treat
and monitor the growing numbers of COVID-19 patients,” said Frans
van Houten, CEO of Royal Philips. “We have been mobilizing as a
company to do so since January. The collaboration with our trusted
partners Flex and Jabil will rapidly expand our hospital ventilator
production capacity, and reinforce the supply chain to enable the
ramp up to a production of 4,000 hospital ventilators per week by
the third quarter. To complement this, our team has developed the
new Philips Respironics E30 ventilator, which can be safely used
when there is limited access to a fully featured critical care
ventilator. The Philips Respironics E30 ventilator can deliver a
range of treatment options, and we will quickly scale its
production to 15,000 units per week in April.”
Ramp up of hospital ventilator production for critical
COVID-19 patients Philips has engaged manufacturing
solutions partners Flex and Jabil, as well as other partners, to
further expand its hospital ventilator assembly lines and
strengthen its supply chain. Flex and Jabil have expertise in
medical device technologies, and possess a global industry
footprint, as well as a network of certified materials and
component suppliers. Flex already produces one of Philips’ other
respiratory products.
The assembly lines at Philips’ manufacturing site in Murrysville
in western Pennsylvania (US) and at Flex focus on the production of
the Philips Trilogy hospital ventilator for invasive and
non-invasive ventilation, while the assembly lines at Philips’ site
in California (US) and at Jabil focus on the production of the
Philips Respironics V60 hospital ventilator for invasive and
non-invasive ventilation. The combined hospital ventilator output
is projected to increase to 4,000 units per week by the third
quarter of 2020.
Philips is working with its suppliers in the US, Europe and Asia
to ensure a sufficient and uninterrupted supply of the 650+
different components that are needed for the assembly of Philips’
hospital ventilators. This is the rate-limiting step, and requires
the support of all countries involved.
Introduction of Philips Respironics E30 for emergency
use to fill the critical hospital ventilation shortageTo
further address the pressing need for critical care ventilators,
Philips has been working closely with leading respiratory
physicians and medical device regulators in the U.S. and other
countries to develop a readily available ventilator that fills the
critical hospital ventilation shortage.
Designed for large scale production by a team deeply experienced
in respiratory care, the Philips Respironics E30 ventilator is
optimized to treat patients with respiratory insufficiency. This
easy-to-use ventilator offers quick set-up and simple operations
allowing healthcare providers with a wide range of skill sets to
treat and monitor patients. The Philips Respironics E30 can be used
non-invasively, as well as invasively, offering the flexibility to
adapt to the treatment needs of patients with COVID-19.
Philips is now quickly scaling the production of this new
ventilator with the unprecedented needs of healthcare providers and
COVID-19 patients in mind, while also complying with medical device
quality standards. On April 8, 2020, the US FDA authorized the
device for use in the US during the COVID-19 public health
emergency through its Emergency Use Authorization (EUA) process.
Philips is working with the relevant regulatory authorities to also
distribute the device globally. Philips started the production of
the Philips Respironics E30 ventilator in its New Kensington site
in western Pennsylvania (US). Philips targets a production of
15,000 of these ventilators per week in April.
Production expansion investmentsTo facilitate
the production expansion across its three ventilator manufacturing
sites in the US, Philips is investing several tens of millions in
additional tools and molds, final assembly lines and test
facilities. Moreover, the company is hiring extra manufacturing
employees and changing to 24/7 shifts.
COVID-19 treatment depends on international
collaborationAs COVID-19 treatment depends on the global
availability of ventilators and components, Philips continues to
engage with governments, health authorities, and relevant
industries to safeguard the production expansion of materials,
components and final products, as well as their shipment between
countries. This is fully in line with the call to action by the
International Chamber of Commerce (ICC) and World Health
Organization (WHO) in March 2020.
Fair and ethical allocation of scarce medical
equipmentPhilips believes that scarce medical equipment,
such as hospital ventilators, should be made available across the
world using a fair and ethical approach to allocate supply to acute
patient demands based on data such as the COVID-19 statistics per
country/region (e.g. provided by the WHO and Johns Hopkins
Coronavirus Resource Center) and the available critical care
capacity. Philips may divide orders into batches to be delivered in
phases, so that the company can simultaneously serve multiple
countries/regions in need.
For additional information about the collaboration with Flex and
Jabil, click here, and for additional information about the Philips
Respironics E30 ventilator, click here.
For further information, please contact:
Steve KlinkPhilips Global Press OfficeTel.: +31 6
10888824E-mail: steve.klink@philips.com
Leandro MazzoniPhilips Investor RelationsTel.: +31 20 59
77222E-mail: leandro.mazzoni@philips.com
About Royal PhilipsRoyal Philips (NYSE: PHG,
AEX: PHIA) is a leading health technology company focused on
improving people's health and enabling better outcomes across the
health continuum from healthy living and prevention, to diagnosis,
treatment and home care. Philips leverages advanced technology and
deep clinical and consumer insights to deliver integrated
solutions. Headquartered in the Netherlands, the company is a
leader in diagnostic imaging, image-guided therapy, patient
monitoring and health informatics, as well as in consumer health
and home care. Philips' health technology portfolio generated 2019
sales of EUR 19.5 billion and employs approximately 80,000
employees with sales and services in more than 100 countries. News
about Philips can be found at
http://www.philips.com/newscenter.
Forward-looking statements This release
contains certain forward-looking statements with respect to the
financial condition, results of operations and business of Philips
and certain of the plans and objectives of Philips with respect to
these items. Examples of forward-looking statements include
statements made about the strategy, estimates of sales growth,
future EBITA, future developments in Philips’ organic business and
the completion of acquisitions and divestments. By their nature,
these statements involve risk and uncertainty because they relate
to future events and circumstances and there are many factors that
could cause actual results and developments to differ materially
from those expressed or implied by these statements.
- Philips Respironics E30 Ventilator Testing
- Philips Respironics V60 Plus Hospital Ventilator
- Philips Trilogy Hospital Ventilator
- Philips Respironics E30 Ventilator Assembly Line
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