Boston Scientific, a medical device maker valued at $72 billion, disclosed on Wednesday that it was hit by a cyberattack earlier in the week, significantly affecting its operations and access to company information systems and applications, including shipment services [1]. The company revealed this information in an SEC filing, noting that while efforts to restore affected functions are ongoing, the timeline for a full restoration remains unknown [1].
Following the announcement, Boston Scientific's shares fell 5.8% in premarket trading on Wednesday [1]. The company's stock has already been under pressure this year, having been nearly cut in half after issuing a weak profit forecast in the first quarter [1].
Analysts at Piper Sandler, after speaking with company management, indicated that it may take weeks before Boston Scientific can resume normal business operations [1]. Matt O'Brien at Piper Sandler stated, "We believe BSX may be able to return to shipping all of its products in less than three weeks," but also noted that the company is currently unable to process and ship orders, which will likely have an adverse impact on sales [1]. O'Brien added, "clearly, this is not great for a company that is already seeing sales growth slow" [1].
When asked for further comment, Boston Scientific reiterated the information provided in its SEC filing [1].
CONCLUSION
Boston Scientific is facing significant operational disruptions due to a cyberattack, resulting in a sharp decline in its share price and further pressure on its already weakened sales outlook. The company is working to restore systems, but analysts expect it may take weeks to resume normal operations, with sales likely to be negatively impacted in the interim.