FDA Identifies ResMed's Recall Of Certain Ventilator Device Masks With Magnets As Most Serious
Portfolio Pulse from Vandana Singh
The FDA has classified ResMed Ltd's (NYSE:RMD) recall of certain CPAP masks with magnets as a Class I recall, the most serious type. The magnets may interfere with certain medical devices, potentially causing serious harm or death. ResMed is updating labels to include more warnings and has recalled over 20 million devices in the U.S. since November 20, 2023. There have been six reported injuries but no deaths. RMD shares dropped 0.47% to $177.06.
January 12, 2024 | 3:07 pm
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ResMed is recalling over 20 million CPAP masks due to risks of magnetic interference with medical devices, following FDA's Class I recall designation. The company is updating warning labels and has issued an advisory letter.
The Class I recall is the most serious recall which indicates a situation where there is a reasonable probability that the use of the product will cause serious adverse health consequences or death. This negative news is likely to affect investor confidence and could lead to a short-term decline in ResMed's stock price. The reported drop in share price following the announcement confirms the negative impact. However, the impact may be somewhat mitigated by the fact that there have been no reported deaths and the company is proactively addressing the issue.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100