Thermo Fisher Profit Up on Demand for Virus-Testing Products

Thermo Fisher earnings got a lift from demand for coronavirus lab testing products.
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Thermo Fisher Scientific  (TMO) - Get Report on Wednesday posted better-than-expected second-quarter results as demand for coronavirus lab testing products helped the medical technology company beat Wall Street's expectations

Shares of the Waltham, Mass., company at last check were up 1.8% to $410.20.

Thermo Fisher Scientific reported net income of $1.16 billion, or $2.90 a share, compared with $1.12 billion, or $2.77 a share, in the year-earlier quarter. Adjusted earnings came to $3.89 a share, beating FactSet's consensus analyst estimate of $2.89 a share. 

Revenue totaled $6.92 billion, up 10% from a year earlier and ahead of FactSet's forecast of $6.1 billion.

"Our teams worked with relentless intensity to establish Thermo Fisher as a global leader in covid-19 testing and leverage our pharma services leadership to support the development and production of therapeutics and vaccines," Marc Casper, chairman, president and chief executive, said in a statement.

In the second quarter, life sciences solutions segment revenue was $2.6 billion , compared with $1.71 billion a year earlier. The laboratory products and services segment revenue was $2.79 billion, compared with $2.63 billion.

On Monday, the company said, the Biomedical Advanced Research and Development Authority said it would provide funding to support Thermo Fisher's expansion of manufacturing capacity for sterile injectables, which can be used to fill a high volume of vaccine doses. 

Barda is part of the Office of the Assistant Secretary for Preparedness and Response at the U.S. Department of Health and Human Services. 

Last week, Thermo Fisher Scientific agreed to raise its bid for Qiagen, the Netherlands molecular-diagnostics company, by roughly 10%. 

Casper noted that both companies "are playing important roles in helping customers to battle the covid-19 pandemic."

"After careful consideration, we've decided to increase our offer for Qiagen to reflect the fair value of the business given the current environment," he said in a statement.

In March, Thermo Fisher Scientific said it received emergency-use authorization from the Food and Drug Administration to market its diagnostic test for the coronavirus.