How Is Thermo Fisher Scientific Accelerating Growth?


Nov. 30 2016, Updated 11:02 a.m. ET


Thermo Fisher Scientific’s business consists of four complementary businesses: Analytical Instruments, Specialty Diagnostics, Life Science Solutions, and Laboratory Products and Services. Growth in these segments is driven by the company’s three core strategies. Innovation leadership is one of these core growth strategies. Thermo Fisher Scientific has the largest research and development (or R&D) budget in the industry, which accelerates this growth strategy. The company invested around $700 million in 2015. In 2016, Thermo Fisher Scientific has invested over $542 million to date.

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Among TMO’s peers, Stryker (SYK) and Zimmer Biomet Holdings (ZBH) have invested approximately $526 million and $270 million, respectively, in R&D in 2016 to date. Investors who want to invest in Thermo Fisher Scientific but avoid focused exposure to the company can invest in the Vanguard Growth ETF (VUG), which holds approximately 0.62% of its total holdings in TMO.

Recent breakthrough innovations

On November 14, 2016, Thermo Fisher Scientific filed the PMA (pre-market approval) application with the FDA (U.S. Food and Drug Administration) for the Oncomine Universal Dx Test. It is a single NGS (next-generation sequencing)-based assay for multi-gene testing in NSCLC (non-small cell lung cancer) patients. It is a one-of-its-kind test that will help speed up the genetic profiling process due to the elimination of sequential testing, which takes time and also eliminates the need for sometimes dangerous biopsies for additional tissue requirements for testing. Clinical trials with other companies such as Pfizer (PFE) and Novartis (NVS) are also going on. Thermo Fisher Scientific has formed partnerships and collaborations with such companies to test drugs on a single panel.

For some of the latest product approvals, read A Look at Thermo Fisher Scientific’s Recent Product Approvals.

Next, let’s look at the integration progress of the recently acquired FEI Company.


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