MISYS Healthcare Systems was recovering, today, after reports that some of its software products had been "recalled" from America hospitals.

The US Food and Drug Agency announced last Friday that the company - a subsidiary of Misys plc, based in Pitchill, near Evesham - was recalling some of its laboratory software.

The announcement was followed by a fall in share prices at the start of the week. But, last night, Misys share prices closed at 318.5p, up by 5.75p.

The recall of the software, which collates information from blood and urine tests, was due to a defect that could lead to inaccurate results being used to diagnose patients.

John Sussens, group managing director of the company, said he was at a loss as to why the US regulatory body had announced on its website that the company was "initiating a nationwide recall" of the product as it had dealt with the issue in August.

The regulator's statement was worded "too strongly" and was potentially misleading.

Analysts said the news could affect the reputation and financial future of Misys's US healthcare business, which contributes to a third of its profits and sales.

One analyst told The Financial Times: "A lot of software programs come with bugs, but you don't want to make mistakes in healthcare. This will not do Misys any favours."

Mr Sussens said the defect had only affected a small amount of software, and dismissed the cost to fix it as "irrelevant".

"Our assessment was and remains that its financial impact won't be

material and that the impact on our business will be minimal," he added. "You have to appreciate the use of the word 'recall' here.

"It's not like in the traditional sense, when a batch of cars have to be recalled.

"We haven't had this software sent back and it's not saying that this product can't be sold. It continues to be sold."

He said the company sent out letters to all 468 US hospitals using its systems, explaining what the problem was and how users could solve it.

The FDA stressed that to date no injuries had been reported in connection with the defected system.

Around 250 people are employed at Misys plc's subsidiary, Misys General Insurance, at its head office in Buckholt Drive, Warndon.