Boston Scientific left nursing its bottom line after cyberattack
Boston Scientific has warned that it will likely miss its third-quarter and full-year sales growth and adjusted earnings targets after a cyberattack disrupted operations last month. The medical device maker disclosed the financial hit in an SEC filing published on Tuesday, two weeks after unauthorised network activity forced it to take systems offline and interrupted order processing and shipping worldwide. The disclosure matters because it shows a major healthcare manufacturer still absorbing the operational and financial fallout weeks after containment began, with the full cost still unclear.
The company detected the intrusion on 25 August and says the disruption is expected to have a "material impact" on results, making it unlikely to meet the guidance ranges it issued in July, though it expects to recoup some lost revenue as backlogs clear. Recovery is progressing: major distribution centres are shipping at or above normal levels, sterilisation facilities are running, manufacturing has resumed at most sites, and a problem affecting new patient activations for certain cardiac remote-monitoring devices has been fixed. However, some systems remain affected with no timeline for full recovery, and Boston Scientific has not disclosed how attackers got in, whether ransomware or data theft was involved, or who was responsible; no group has claimed responsibility, and an updated outlook is due with Q3 results on 28 October.
- Boston Scientific won't meet Q3/full-year financial guidance after August cyberattack
- Distribution and manufacturing mostly restored, but full recovery timeline unknown
- Cause, attacker identity and possible data theft remain undisclosed