The U.S. Defense Dept. last week picked up a $77.2 million option on a contract with Philips Healthcare (NYSE:PHG) for its patient monitoring devices.
It’s the 8th 1-year option on a potentially 9-year deal, according to the Pentagon. The Army, Navy, Air Force, Marine Corps and federal civilian agencies are included in the contract, with appropriation from the fiscal 2016 to the fiscal 2017 years, according to a press release.
The contract, inked in 2010, calls for the Dutch healthcare conglomerate to provide the systems, along with accessories, spare parts and training, to the U.S. Army, Navy, Air Force, Marine Corps and federal civilian agencies. The option has a March 29, 2018, closing date, the Defense Dept. said.
Last week the FDA classified the Philips recall of its HeartStart MRx monitor/defibrillator as Class I, denoting “a reasonable probability that use of these products will cause serious adverse health consequences or death.”
The HeartStart MRx monitor/defibrillator is designed to deliver lifesaving electrical shocks to people with sudden cardiac arrest or to pace individuals with a slow heart beat, according to the federal safety watchdog.
The company recalled the units due to electrical and battery connection issues which could prevent the device from powering up, charging and delivering electrical shock therapy, and could stop corrective pacing. The FDA said that a delay in delivery such therapy could result in serious patient injury.
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