Boston Scientific Corp. Wells Fargo 21st Annual Healthcare Conference
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Good morning, everyone. Welcome to day three of the Wells Fargo Healthcare Conference. I'm Larry Biegelsen, the med tech analyst here, and it's my pleasure to host this fireside chat with the management team from Boston Scientific. With us, we have Mike Mahoney, Chairman and CEO, and Dr. Ken Stein, Chief Medical Officer. Gentlemen, thanks so much for being here.
Pleasure, Larry. Thanks, Larry. I'd be remiss if I didn't say we also have Lauren Tengler, Head of Investor Relations, also with us.
Mike, let's start with the unfortunate cyber attack. Hopefully, most people saw the update last night, which was very positive.
Yeah. Operations fully restored. Mike, I think people would love to hear from you, the status update and the impact.
You put out an 8-K earlier this week that said you're unlikely to meet the Q3 and the full-year guidance. How are you thinking about the financial impact and the recovery?
Yeah. So certainly, unfortunate event. Very proud of what our team has done the past eight days, to secure the IT systems globally, to secure distribution, to secure manufacturing. It was an eight-day impact, where we were not able to ship or manufacture. Obviously disappointed there, but really impressed with what our team did to recover very, very quickly, working around the clock over those eight days to ensure that. Also to ensure the integrity of the system with all our third-party suppliers, hospital connectivity, all the EDI capabilities. So it is all back to normal after that. It is fully restored. I was at our distribution center yesterday, and they are cranking through, working very hard, and manufacturing is back up and running. So that is all the really good news.
The unfortunate news with the eight-day impact, we did indicate that it is unlikely that we would meet our third quarter and full-year guidance. A big part of it is we just have to sift through what the recapture rate is, and that is still what we are working through now. We obviously lost procedures that day. Some areas or some regions or some businesses would have adequate supply. Many did not. Hospitals were unsure, as we were at the time, how long it would be. So some hospitals likely ordered from others during that time, which would be understandable. So it made sense for us to indicate that in our Form 8-K on the unlikely piece of it. But are very impressed with what our team has done to recover. Now our focus is on working closely with these customers to try to recapture as much as we can.
But it is hard to pinpoint that exact dollar amount at this point. By the earnings call October 28th, we will certainly be able to give more precise information there.
The impact was broad-based across Boston Scientific.
Around the world, yeah. Any areas impacted more than others?
Geographies? No. All of our plants were shut down.
Distribution centers were shut down globally.
I know it is really early, but implications for 2027, you talked about 2%-4% similar growth.
I think the big thing is the whole themes of the business, which we can talk about, are unchanged based on the cyber attack. We just have to get a better handle on your question on the recapture rate and the financial impact. We will know a lot more in the next 45 days.
We- Then we will be able to give a better sense.
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