Boston Scientific has revealed that its assuming the Q2 2020 impact of COVID-19 will be more significant than that of Q1 2020. As a result, the company is “taking proactive steps to reduce costs and be in a strong position to support customers and patients when healthcare systems begin to recover, and elective procedures start to return to normal volumes”. It says these steps include “optimising appropriate variable costs, including manufacturing output, significantly reducing the salaries of its CEO, board of directors and executive committee members, and where appropriate, temporarily reducing work week schedules for employees”.
Furthermore, according to a press statement, Boston Scientific 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”.
For the first quarter of 2020, business trends through the first two months of the year were in line with company expectations; however, as COVID-19 reached a global pandemic level in March, procedural volumes significantly declined. Subsequently, the company now expects first Q1 2020 revenue growth on a GAAP basis to be approximately flat to up slightly versus the prior year period, and an organic revenue decline of approximately two to three percent.
However, Boston Scientific says it will continue to contribute to COVID-19 relief efforts globally through monetary and supply donations, and by providing engineering and manufacturing expertise and resources. This includes previous and planned donations of protective personal equipment (PPE) and medical equipment to local hospitals and government agencies.
Mike Mahoney, chairman and CEO, Boston Scientific, comments: “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. As healthcare systems respond to the increasing demands of managing COVID-19, emergent procedures need to be prioritised to help enable increased hospital capacity, and therefore elective procedures are being delayed. While we expect this to negatively impact short-term performance, we continue to believe in the excellent, long-term fundamentals of our company and will continue to manage through these challenges with strategic focus and the winning spirit of our talented global team.”