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Thermo Fisher (TMO) Expands Global Footprint With New Facility
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Thermo Fisher Scientific, Inc. (TMO - Free Report) recently announced the expansion of its global Biologics and Steriles manufacturing with the opening of a new facility in Hangzhou, China. The new facility will support pharmaceutical and biotechnology customers to deliver patient’s therapies more quickly.
The latest development is likely to strengthen Thermo Fisher’s Laboratory Products and Biopharma Services segment.
More on the News
The new facility featuring 80,000-square-meter current Good Manufacturing Practices (cGMP) will provide cohesive clinical and commercial drug substance and drug product capabilities and process development, cell line development, biologics drug substance manufacturing and sterile fill-finish. Eventually, it will also feature commercial packaging and labeling capabilities.
The new site includes rigorous quality control processes that address or exceed regulatory guidelines established by the China National Medical Products Administration (NMPA), FDA, and authorities in Europe and elsewhere.
It is worth mentioning that the Hangzhou site is representative of Thermo Fisher’s wide-ranging end-to-end contract development and manufacturing capabilities at a global scale.
Strategic Efforts
Thermo Fisher has been serving China market for the past 40 years through its bioproduction, clinical research and pharma services businesses. Per management, based on “in China, for China” localization strategy, the company is advancing its workflow capabilities to support pharmaceutical and biotechnology companies in China and globally.
Image Source: Zacks Investment Research
The facility is a strategic addition to the company’s global pharma services network as it extends its capabilities to support the manufacturing needs of the customers, enabling them to serve more patients throughout the world.
With the opening of Hangzhou facility and Thermo Fisher’s competencies in clinical packaging and logistics, the company can now provide a streamlined end-to-end solution from molecule development through the accelerated delivery of critical medicines to patients.
Industry Prospects
According to the latest research by McKinsey & Co, China’s healthcare market is projected to grow at a CAGR of nearly 12%, reaching $2.3 trillion by 2030. Improvements in infrastructure, the broadening of insurance coverage, and significant support for innovation are the key catalysts driving the market.
Recent Developments
In December 2022, Thermo Fisher launched the TrueMark Infectious Disease Research Panels intended to allow rapid and accurate detection and categorization for investigating microorganisms that cause respiratory, vaginal, urinary, gastrointestinal, and sexually transmitted diseases. By utilizing real-time PCR technology, the assays can detect over 90 different disease pathogens.
In the same month, Thermo Fisher received FDA approval itsSeCore CDx HLA Sequencing System was granted De Novo Classification. The SeCore CDx HLA Sequencing System is the first HLA typing test to receive marketing authorization from the FDA for use as a companion diagnostic
Price Performance
Shares of the company have lost 12.1% in a year compared with the industry’s fall of 24.4%.
Zacks Rank and Key Picks
Currently, Thermo Fisher carries a Zacks Rank #3 (Hold).
Few other better-ranked stocks in the broader medical space that investors can consider are ShockWave Medical, Inc. , Orthofix Medical Inc. (OFIX - Free Report) and Merit Medical System (MMSI - Free Report) .
ShockWave Medical, sporting a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has outperformed its industry in the past year. SWAV has gained 35% against the industry’s 32.6% fall in the past year.
Orthofix Medical, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2022 adjusted EPS of 13 cents, which beat the Zacks Consensus Estimate by stupendous 550%. Revenues of $114 million outpaced the consensus mark by 2.7%.
Orthofix Medical has an estimated next-year growth rate of 58.97%. OFIX’s earnings surpassed estimates in the trailing three quarters and missed in one, the average being 129.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Merit Medical, currently carrying a Zacks Rank of 2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.
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Thermo Fisher (TMO) Expands Global Footprint With New Facility
Thermo Fisher Scientific, Inc. (TMO - Free Report) recently announced the expansion of its global Biologics and Steriles manufacturing with the opening of a new facility in Hangzhou, China. The new facility will support pharmaceutical and biotechnology customers to deliver patient’s therapies more quickly.
The latest development is likely to strengthen Thermo Fisher’s Laboratory Products and Biopharma Services segment.
More on the News
The new facility featuring 80,000-square-meter current Good Manufacturing Practices (cGMP) will provide cohesive clinical and commercial drug substance and drug product capabilities and process development, cell line development, biologics drug substance manufacturing and sterile fill-finish. Eventually, it will also feature commercial packaging and labeling capabilities.
The new site includes rigorous quality control processes that address or exceed regulatory guidelines established by the China National Medical Products Administration (NMPA), FDA, and authorities in Europe and elsewhere.
It is worth mentioning that the Hangzhou site is representative of Thermo Fisher’s wide-ranging end-to-end contract development and manufacturing capabilities at a global scale.
Strategic Efforts
Thermo Fisher has been serving China market for the past 40 years through its bioproduction, clinical research and pharma services businesses. Per management, based on “in China, for China” localization strategy, the company is advancing its workflow capabilities to support pharmaceutical and biotechnology companies in China and globally.
Image Source: Zacks Investment Research
The facility is a strategic addition to the company’s global pharma services network as it extends its capabilities to support the manufacturing needs of the customers, enabling them to serve more patients throughout the world.
With the opening of Hangzhou facility and Thermo Fisher’s competencies in clinical packaging and logistics, the company can now provide a streamlined end-to-end solution from molecule development through the accelerated delivery of critical medicines to patients.
Industry Prospects
According to the latest research by McKinsey & Co, China’s healthcare market is projected to grow at a CAGR of nearly 12%, reaching $2.3 trillion by 2030. Improvements in infrastructure, the broadening of insurance coverage, and significant support for innovation are the key catalysts driving the market.
Recent Developments
In December 2022, Thermo Fisher launched the TrueMark Infectious Disease Research Panels intended to allow rapid and accurate detection and categorization for investigating microorganisms that cause respiratory, vaginal, urinary, gastrointestinal, and sexually transmitted diseases. By utilizing real-time PCR technology, the assays can detect over 90 different disease pathogens.
In the same month, Thermo Fisher received FDA approval itsSeCore CDx HLA Sequencing System was granted De Novo Classification. The SeCore CDx HLA Sequencing System is the first HLA typing test to receive marketing authorization from the FDA for use as a companion diagnostic
Price Performance
Shares of the company have lost 12.1% in a year compared with the industry’s fall of 24.4%.
Zacks Rank and Key Picks
Currently, Thermo Fisher carries a Zacks Rank #3 (Hold).
Few other better-ranked stocks in the broader medical space that investors can consider are ShockWave Medical, Inc. , Orthofix Medical Inc. (OFIX - Free Report) and Merit Medical System (MMSI - Free Report) .
ShockWave Medical, sporting a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has outperformed its industry in the past year. SWAV has gained 35% against the industry’s 32.6% fall in the past year.
Orthofix Medical, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2022 adjusted EPS of 13 cents, which beat the Zacks Consensus Estimate by stupendous 550%. Revenues of $114 million outpaced the consensus mark by 2.7%.
Orthofix Medical has an estimated next-year growth rate of 58.97%. OFIX’s earnings surpassed estimates in the trailing three quarters and missed in one, the average being 129.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Merit Medical, currently carrying a Zacks Rank of 2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.