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Thermo Fisher Scientific Inc.’s TMO strategic buyouts and partnerships are poised to help it grow in the upcoming quarters. The company continues to prioritize its partnership with customers to drive innovation and improve patient care. Its recent string of product launches also looks highly promising. Meanwhile, declining COVID-19 revenues and adverse macroeconomic volatilities may hurt growth.
In the past year, this Zacks Rank #3 (Hold) stock has rallied 7.8% compared with the industry’s 13.1% growth and the S&P 500 composite’s 30.9% rise.
The renowned medical and laboratory equipment provider has a market capitalization of $205.49 billion. TMO’s earnings yield of 4.04% compares favorably to the industry’s -4.75%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.63%.
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Let’s delve deeper.
Upsides for Thermo Fisher
Strategic Acquisitions to Boost Growth: Thermo Fisher’s business strategy primarily includes expansion through the strategic acquisition of technologies and businesses that augment the company’s existing products and services. A few of its recent deals likely to drive future growth include the $3.1 billion acquisition of Olink Holdings. The acquisition, closed in the third quarter of 2024, enhances Thermo Fisher’s capabilities in the high-growth proteomics market with the addition of highly differentiated solutions. TMO acquired CorEvitas in 2023, advancing its clinical research capabilities with a leading regulatory-grade registry platform. The acquisition of MarqMetrix has added highly complementary Raman-based in-line PAT to Thermo Fisher’s portfolio.
New Partnerships Expand Business: During the third quarter of 2024, the company entered into a partnership with the National Cancer Institute for the myeloMATCH precision medicine umbrella trial within its clinical next-generation sequencing business. In the Asia Pacific region, TMO expanded its partnership with the National Battery Research Institute in Indonesia to advance battery technology and energy storage and another with the Mandaya Hospital Group in Indonesia to help advance stem cell research and cell therapy development. Thermo Fisher collaborated with Bayer AG to develop next-generation sequencing (NGS)-based companion diagnostic assays (CDx).
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Product Launch Impressive: Thermo Fisher’s recent slew of product launches includes the new pre-transplant risk assessment assay through CLIA laboratory. It will help assess the risk of early acute rejection in kidney transplant recipients. The company also introduced the international CorEvitas Adolescent Atopic Dermatitis (“AD”) Registry for adolescent patients. Thermo Fisher launched Scientific KingFisher PlasmidPro Maxi Processor (PlasmidPro) and Scientific One Lambda Laboratories — a new CXCL10 testing service. The company introduced the Thermo Scientific Stellar Mass Spectrometer to extend its leadership in proteomics. In the bioproduction business, the company launched a first-of-its-kind bio-based film for single-use technologies.