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Thermo Fisher (TMO) Expands Capabilities in St. Louis Facility
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Thermo Fisher Scientific (TMO - Free Report) recently announced the expansion of its manufacturing capacity at the St. Louis site. The increased capability will support biologic therapies for diseases ranging from cancers to autoimmune conditions to rare genetic disorders.
The St. Louis site is integral to the company’s global biologics manufacturing network, which also includes facilities in North America, Europe, Australia and Asia. The latest development is likely to strengthen the company’s Laboratory Products and Biopharma Services segment.
News in Detail
Since 2021, Thermo Fisher has made significant investments to add 58,000 square feet of biologics manufacturing space. The addition was facilitated by state and local tax incentives, including a 10-year new project abatement beginning in 2024. The company employs more than 1,000 people in Missouri and more than 900 work at the site.
Image Source: Zacks Investment Research
The St. Louis manufacturing site has produced biologic therapies since the early 1990s and currently develops products for customers that are commercially available worldwide. The expansion adds manufacturing suites that will contain up to four Thermo Scientific DynaDrive Single-Use Bioreactors, each of which can process up to 5,000 liters. St. Louis also has a collaboration center where TMO’s pharma services and bioproduction businesses develop additional technologies, products and services for customers.
Significance of the News
Unlike other drugs that are chemically synthesized, biologics are manufactured within living cells, making them inherently more complex to manufacture. Thermo Fisher has decades of experience in biologics and is competent to address the span of activities from supporting initial research to process development to commercial production.
The company’s representative states that the expansion of the facility will provide its customers with greater flexibility to scale manufacturing and better serve patients who need these unique medicines.
Industry Prospects
Per a Research report, the global biologics market was valued at $461.74 billion in 2022 and is expected to witness a CAGR of 10.3% in the 2023-2030 period.
Highlights of the Laboratory Products and Biopharma Services Segment
Thermo Fisher’s Laboratory Products and Biopharma Services segment offers a unique combination of self-manufactured and sourced products, and an extensive service offering enables customers to focus on their core activities and helps them to be more efficient, productive and cost-effective. In addition, the comprehensive offering of outsourced services is used by the pharmaceutical and biotech industries for drug development, clinical research, clinical trials services and commercial drug manufacturing.
In the last reported second quarter of 2023, organic revenue growth in this segment was led by the Pharma Services and Clinical Research Businesses. The company recently made an announcement to acquire CorEvitas, a leading provider of regulatory-grade real-world evidence for approved medical treatments and therapies. The strategic addition is highly complementary to PPD, Thermo Fisher’s leading clinical research business, and will help the company better serve its pharma and biotech customers and strengthen its value proposition.
Price Performance
In the past six months, TMO shares have decreased 13.4% against the industry’s rise of 11.2%.
Zacks Rank and Key Picks
Thermo Fisher currently carries a Zacks Rank #4 (Sell).
Haemonetics stock has risen 15.3% in the past year. Earnings estimates for Haemonetics have remained constant at $3.82 in 2023 and at $4.07 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Quanterix’s 2023 loss per share have remained constant at 97 cents in the past 30 days. Shares of the company have surged 149% in the past year against the industry’s fall of 3.6%.
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for Align Technology’s 2023 earnings have moved up from $8.77 to $8.78 per share in the past 30 days. Shares of the company have increased 32.4% in the past year compared with the industry’s rise of 51.2%.
ALGN’s earnings beat estimates in three of the trailing four quarters and missed in one. In the last reported quarter, it posted an earnings surprise of 9.90%.
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Thermo Fisher (TMO) Expands Capabilities in St. Louis Facility
Thermo Fisher Scientific (TMO - Free Report) recently announced the expansion of its manufacturing capacity at the St. Louis site. The increased capability will support biologic therapies for diseases ranging from cancers to autoimmune conditions to rare genetic disorders.
The St. Louis site is integral to the company’s global biologics manufacturing network, which also includes facilities in North America, Europe, Australia and Asia. The latest development is likely to strengthen the company’s Laboratory Products and Biopharma Services segment.
News in Detail
Since 2021, Thermo Fisher has made significant investments to add 58,000 square feet of biologics manufacturing space. The addition was facilitated by state and local tax incentives, including a 10-year new project abatement beginning in 2024. The company employs more than 1,000 people in Missouri and more than 900 work at the site.
Image Source: Zacks Investment Research
The St. Louis manufacturing site has produced biologic therapies since the early 1990s and currently develops products for customers that are commercially available worldwide. The expansion adds manufacturing suites that will contain up to four Thermo Scientific DynaDrive Single-Use Bioreactors, each of which can process up to 5,000 liters. St. Louis also has a collaboration center where TMO’s pharma services and bioproduction businesses develop additional technologies, products and services for customers.
Significance of the News
Unlike other drugs that are chemically synthesized, biologics are manufactured within living cells, making them inherently more complex to manufacture. Thermo Fisher has decades of experience in biologics and is competent to address the span of activities from supporting initial research to process development to commercial production.
The company’s representative states that the expansion of the facility will provide its customers with greater flexibility to scale manufacturing and better serve patients who need these unique medicines.
Industry Prospects
Per a Research report, the global biologics market was valued at $461.74 billion in 2022 and is expected to witness a CAGR of 10.3% in the 2023-2030 period.
Highlights of the Laboratory Products and Biopharma Services Segment
Thermo Fisher’s Laboratory Products and Biopharma Services segment offers a unique combination of self-manufactured and sourced products, and an extensive service offering enables customers to focus on their core activities and helps them to be more efficient, productive and cost-effective. In addition, the comprehensive offering of outsourced services is used by the pharmaceutical and biotech industries for drug development, clinical research, clinical trials services and commercial drug manufacturing.
In the last reported second quarter of 2023, organic revenue growth in this segment was led by the Pharma Services and Clinical Research Businesses. The company recently made an announcement to acquire CorEvitas, a leading provider of regulatory-grade real-world evidence for approved medical treatments and therapies. The strategic addition is highly complementary to PPD, Thermo Fisher’s leading clinical research business, and will help the company better serve its pharma and biotech customers and strengthen its value proposition.
Price Performance
In the past six months, TMO shares have decreased 13.4% against the industry’s rise of 11.2%.
Zacks Rank and Key Picks
Thermo Fisher currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , Quanterix (QTRX - Free Report) and Align Technology (ALGN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics stock has risen 15.3% in the past year. Earnings estimates for Haemonetics have remained constant at $3.82 in 2023 and at $4.07 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Quanterix’s 2023 loss per share have remained constant at 97 cents in the past 30 days. Shares of the company have surged 149% in the past year against the industry’s fall of 3.6%.
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for Align Technology’s 2023 earnings have moved up from $8.77 to $8.78 per share in the past 30 days. Shares of the company have increased 32.4% in the past year compared with the industry’s rise of 51.2%.
ALGN’s earnings beat estimates in three of the trailing four quarters and missed in one. In the last reported quarter, it posted an earnings surprise of 9.90%.