Boston Scientific Cuts Pay and Withdraws Revenue Guidance

As expected, medical device companies are feeling the financial impact of the new coronavirus – and it's only going to get worse. Boston Scientific was already expecting the virus to lower first-quarter revenue by $10 million to $40,000 as early as Feb. 5, when the company hosted it's last earnings call. Then, as COVID-19 reached a global pandemic level in March, procedure volumes took a nose dive. The Marlborough, MA-based company now expects first quarter 2020 revenue growth to be flat to "up slightly" compared to first quarter 2019 revenue, and an organic revenue decline of about 2% to 3%. As the second quarte impact of the pandemic is expected to be more significant than the first quarter impact, Boston Scientific reported cost-cutting measures, including "significantly" reducing the salaries of CEO Mike Mahoney, board of directors and executive committee members, and where appropriate, temporarily reducing work week schedules for employees. The company said it has also strategically decreased discretionary spending and implemented precautionary measures to ensure business continuity in its supply chain and manufacturing facilities, including rotational shifts, segregating buildings, and limiting movement across building sites. "We are focused on the safety and well-being of our people, who continue to find innovative solutions to support critical procedures and time-sensitive patient needs," Ma...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news