Why Shares of Koninklijke Philips Are Falling on Friday

Shares of medical technology company Koninklijke Philips (NYSE: PHG) were down more than 9% as of 10:45 on Friday. The company announced on Thursday that the Food and Drug Administration (FDA) is recommending further tests on certain recalled sleep apnea and respirator devices before allowing them back on the market.

The stock is up more than 26% so far this year.

On Thursday, Philips said that after discussing the matter with the FDA, it has agreed to perform further testing on the recalled devices. The FDA had said it wasn't satisfied with Philips' handling of the recall, so additional risk testing was required. It added that the testing and analysis Philips had shared were not enough to determine the risks to users.

Source Fool.com