Boston Scientific Cuts Financial Outlook After Cyberattack Disrupts Operations

Medical device maker Boston Scientific has warned investors that a cybersecurity incident discovered on August 25 will cause it to fall short of the net sales and earnings targets it issued earlier this year. The unauthorized activity on company systems triggered a network outage that disrupted access to operating systems and business applications, hampering the company's ability to manufacture, process and ship customer orders.

The company activated containment measures and brought in third-party cybersecurity specialists to investigate. It says it has found no evidence of ongoing unauthorized access, though the investigation continues, and it has not yet said whether any data was compromised. Major distribution centres are now shipping orders at or above normal levels, and most manufacturing and sterilization facilities are back online, though a full recovery timeline is still unclear.

Boston Scientific expects to recover some of the lost revenue by working through order backlogs, but the full financial impact remains uncertain. Executives plan to give a revised outlook during their third-quarter earnings call on October 28. The company does not believe the incident will cause long-term financial damage, though its share price fell more than 5% following the disclosure.