By Christy Santhosh and Sahil Pandey (Reuters) -Thermo Fisher Scientific raised its annual profit and revenue forecasts on Wednesday, as the medical equipment maker expects robust demand for lab tools and benefits from its recent acquisitions to offset a decline in China. Contract research firms such as Thermo Fisher are seeing renewed demand for their […]
Health
Thermo Fisher lifts annual forecasts on tools demand, recent deals
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By Christy Santhosh and Sahil Pandey
(Reuters) -Thermo Fisher Scientific raised its annual profit and revenue forecasts on Wednesday, as the medical equipment maker expects robust demand for lab tools and benefits from its recent acquisitions to offset a decline in China.
Contract research firms such as Thermo Fisher are seeing renewed demand for their services as pharmaceutical companies ramp up drug development and manufacturing in the U.S. while navigating President Donald Trump’s shifting trade policies.
“There’s a quiet confidence that they’re going to be able to navigate the government policies effectively, and you’re seeing that in some of the announcements that have been made on pricing, as well as on reshoring,” CEO Marc Casper said about its pharmaceutical customers.
The Trump administration has extended some tariff exclusions on China through November 29, but signaled potential new duties, prompting Beijing to threaten countermeasures.
Thermo said its revenue from China will be down by mid-to-high single-digit percentage due to the government’s program for buying medical devices in bulk at a sharp discount.
Its government and academic segment posted a slight single-digit revenue decline, the management said, at a time when the Trump administration has slashed academic research funding by nearly 40%.
The company also expects a delay in some expenditures by the U.S. government due to the shutdown, Casper said.
Thermo said it has benefited from recent deals such as the purchase of Sanofi’s New Jersey facility to produce critical medicines and Solventum’s purification and filtration business for about $4.1 billion to expand in bioprocessing.
The company reported quarterly revenue of $11.12 billion, compared with analysts’ estimate of $10.91 billion, according to data compiled by LSEG.
The Waltham, Massachusetts-based firm raised its annual revenue forecast to a range of $44.1 billion to $44.5 billion from $43.6 billion to $44.2 billion earlier.
It expects annual adjusted profit to be between $22.60 and $22.86 per share, compared with its previous range of $22.22 to $22.84 per share.
Thermo Fisher’s quarterly profit per share of $5.79 beat analysts’ estimate of $5.49.
(Reporting by Sahil Pandey and Christy Santhosh in Bengaluru; Editing by Shilpi Majumdar and Leroy Leo)