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(Reuters) -Thermo Fisher Scientific on Thursday forecast annual profit above Wall Street estimates, banking on improved demand for its products and services used in developing therapies, sending its shares up 6.5% in morning trading.
The company also beat estimates for fourth-quarter profit and revenue, boosted by strong demand for its analytical instruments segment.
Contract drug manufacturers witnessed reduced spending from biotech clients in the past two years, but recent interest rate cuts could improve the funding environment for biotechs as borrowing costs might ease.
However, some life sciences firms such as rival Danaher have indicated that despite the rate cuts smaller biotech clients are still cautious with their investments.
Earlier this week, Franco-German peer Sartorius reported preliminary annual results that beat expectations and posted a 23.1% rise in fourth-quarter orders for its key Bioprocess Solutions division, lifting shares of life sciences firms such as Thermo Fisher.
The medical device maker forecast 2025 adjusted profit in the range of $23.10 to $23.50 per share, while analysts were expecting $23.10 per share.
On an adjusted basis, Thermo Fisher earned a profit of $6.10 per share for the quarter ended Dec. 31, beating analysts' estimates of $5.94 per share, as per data compiled by LSEG.
The Waltham Massachusetts-based company's revenue rose 5% to $11.40 billion, ahead of estimates of $11.28 billion.
(Reporting by Sneha S K in Bengaluru; Editing by Shailesh Kuber)