Royal Philips (NYSE:PHG) announced today that it plans to double production of its hospital ventilators by next month with an eye on a four-fold increase by the third quarter of 2020.
The Amsterdam-based company is building on its initial doubling of production amid a shortage of equipment for the COVID-19 pandemic. On top of that, the company introduced its Philips Respironics E30 ventilator, capable of non-invasive and invasive ventilation and designed for large-scale production.
Respironics E30 received FDA emergency use authorization (EUA) last week and Philips is working with other regulatory authorities to distribute the device around the world. The company is producing the ventilator at its New Kensington, Pa., facility with a target of 15,000 units produced per week this month.
Philips entered into collaborations with Flex, Jabil and other partners to expand its hospital ventilator assembly lines and strengthen its supply chain as well. The combined output is projected to increase to 4,000 units per week by the third quarter of this year.
Additionally, Philips said in a news release that it is investing tens of millions of dollars in additional tools and molds, assembly lines and test facilities while hiring extra manufacturing employees and changing to 24/7 shifts.
“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,” Philips CEO Frans van Houten said in the news release. “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.”
