Thermo Fisher benefits from biopharma recovery, China momentum
TMO•TMO•TMO•TMO•Thermo Fisher beat analyst estimates for third-quarter results, citing strong demand for life sciences tools as biotech companies increase research and manufacturing spending. Analysts pointed to improving biotech markets and low-double-digit growth in China revenue.
William Blair said positive data points supported the market recovery thesis, while Evercore said biotech customers expect research-reagent spending to increase over the next couple of quarters. Leerink Partners said Thermo Fisher is well positioned to deliver at the upper end of its 3%-6% organic growth framework.
RBC Capital Markets said Thermo Fisher's China revenue accelerated to low-double-digit growth, an encouraging indication that a biopharma-led recovery is gaining traction. Jefferies said the company's contract drug manufacturing business posted significant growth, though some work originally scheduled for the fourth quarter was completed earlier, in the third quarter.
