Koninklijke Philips N : Philips statement on its ongoing collaboration with HHS and BARDA

Amsterdam, the Netherlands - In 2014, Royal Philips (NYSE: PHG; AEX: PHIA), a global leader in health technology, was awarded a three-year USD 13.8 million development contract from the U.S. Department of Health and Human Services (HHS) to develop a new disaster readiness ventilator for the Strategic National Stockpile (SNS). Philips has worked closely on this project with the Biomedical Advanced Research and Development Authority (BARDA) within the HHS Office of the Assistant Secretary for Preparedness and Response.

The resulting special Trilogy Universal ventilator was designed for disaster response deployment from the stockpile, which includes, for example, service readiness capabilities and rugged packaging to drop by parachute into disaster areas. The system received FDA 510(k) clearance in 2019.

The HHS funds to develop Trilogy Universal were only a part of the unit's total development costs. Philips' investment exceeded the HHS contribution. Additionally, the collaboration and government funding were taken into consideration when Philips agreed on the unit price for the future exercisable purchase option of 10,000 Trilogy Universal units.

Philips' commercial Trilogy ventilators for North America, the Trilogy EVO designed for hospital-to-home settings and Trilogy EV300 designed for hospital settings, received FDA 510(k) clearance in 2019 as well.

The purchase option for Trilogy Universal was exercised by the HHS in September 2019, with initial units scheduled for delivery in August 2020. Philips is fully committed to fulfill the contract with the HHS for the delivery of 10,000 Trilogy Universal units. Philips is working closely with BARDA to accelerate delivery to the SNS.