Omicron Weakens Boston Scientific's Guidance

Boston Scientific's initial full-year guidance was lower than expected, due to the Omicron variant of COVID-19 and related headwinds, but the company is hopeful that the second half of the year will be better. Stryker was also impacted by Omicron, but the company’s Mako surgical robotics system was a saving grace during the unpredictable quarter.

Hologic Feels 'Annoying Little Body Blow' from Global Chip Shortage

Supply chain disruptions have become more specific for Hologic in recent weeks, as the global chip shortage is impacting mammography and other imaging systems in the company's breast health division. The chip shortage will temporarily lengthen delivery timelines for mammography systems as the company preserves enough inventory to mantain service continuity for its installed base of mammography systems. Hologic is estimating around $200 million of revenue will be pushed out of fiscal 2022 because of this supply disruption. Still, the fact that Hologic is able to absorb a $200 million revenue impact from the chip shortage without it hurting too much really speaks volumes to how far its come as a company.

"You think about that kind of a hit eight years ago would have been a big deal, even three or four years ago, would have been a very sizable knockdown punch," CEO Stephen MacMillan said. "And now it's kind of an annoying little body blow that we know we'll work right through and set ourselves up to continue to win."

BD Names Diabetes Spinoff

Becton Dickinson and Co. has named its diabetes spinoff Embecta. The company’s board approved the spin-off, which is set to occur April 1. The spinoff was first announced in May of last year.

And in case you missed our last Medtech in a Minute report...

J&J Is Hungry for Medtech M&A

Johnson & Johnson executives have indicated interest in medical device acquisitions that would build upon its capabilities, address portfolio gaps, and play in higher-growth markets. CFO Joseph Wolk said the company will assess opportunities of all sizes, but that J&J is partial to tuck-in deals, which typically offer greater value creation. J&J will also be busy this year preparing to split off its consumer products business from its medical device and pharmaceutical businesses, but CEO Joaquin Duato said that won't get in the way of merger and acquisition opportunities.

Abbott May Hop on the M&A Train – or Not

Abbott didn't seem overly eager to hop on the M&A train during the J.P. Morgan Health Care Conference earlier this month. However, last week during the company's fourth-quarter earnings call, suggested that there may be at least some merger and acquisition activity for the company in 2022. CEO Robert Ford offered a bit more insight into the company's M&A appetite last week during its fourth-quarter earnings call, however, saying that medical devices and diagnostics are where Abbott is looking more carefuly. He said the company is most likely to pull the trigger on tuck-in acquisitions or perhaps even some medium-sized deals, so long as the right opportunities present themselves.

Supply Chain Pressure Hits GE Healthcare

GE Healthcare reported a 4.1% decline in revenue during the fourth quarter because of supply chain and inflation challenges. GE Healthcare is expected to become a stand-alone business in 2023 as part of a three-way split that will create three public companies. Parent company GE wants to combine its renewable energy, power, and digital businesses into a separate company in a second spin-off slated for 2024. The remaining GE business will focus on aviation.