Yahoo Finance Thermo Fisher (TMO) Expands Manufacturing Facility in APAC
Thermo Fisher Scientific, Inc. TMO established a new sterile drug facility in Singapore that will make it easier for clients to distribute novel medications and vaccines in the Asia-Pacific market. For Singapore, which is quickly transforming into a biomedical centre in the Asia-Pacific region, the new facility marks a significant milestone and investment in pandemic preparedness.
The new site enables Thermo Fisher to better assist clients in accelerating their research, development and marketing of fresh medications and vaccines in the Asia-Pacific region.
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The current Good Manufacturing Practises (cGMP) facility was built with assistance from the Singapore Economic Development Board (EDB), in line with the government's investment in preparedness for upcoming health emergencies. It will offer rapid vaccine fill-finish capabilities along with Thermo Fisher's end-to-end pharmaceutical development and manufacturing services.
A fast, fully-automated aseptic fill-finish line for small and large molecules is part of the new facility. Thermo Fisher Scientific's Customer Experience Centre and Bioprocess Design Centre, two other operating lab facilities that highlight the most recent bioprocessing, life science and analytical technologies, are complemented by expanded research capabilities owing to this strategic investment in Singapore.
Significance of the New Facility
Singapore is a centre for the development and supply of significant pharmaceutical products to meet Asia's healthcare demands because of its strengths in manufacturing and connection to the region. Thermo Fisher Scientific's fill-finish manufacturing facility will help the country to conduct end-to-end vaccine manufacture. This will improve the region's future pandemic preparedness and raise the robustness of TMO’s vaccine supply chain.
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Per management, the robust sterile fill-finish global network of Thermo Fisher is significantly expanded by this new location. With this growth, the firm is more strategically prepared than ever to meet the demands of clients by facilitating the delivery of essential drugs and vaccinations to patients.
Industry Prospects
According to Precedence Research, the global medical supply delivery service market was valued at $ 50.33 billion in 2021 and is expected to reach more than $97.5 billion by 2030, poised to witness a CAGR of 7.6% by 2030. The growing number of surgical procedures across the globe due to the growing prevalence of chronic diseases among the population is boosting the demand for market.
Expansion Continues
Thermo Fisher is currently expanding its bioproduction purification resin capacity, which is used in the mRNA manufacturing process.
In April 2023, Thermo Fisher expanded the early development work for oral solid dose therapies at its location in Bourgoin, France. This move demonstrates the company's dedication to assisting clients in accelerating the delivery of medications to patients by addressing workflow issues from early drug development through commercial manufacturing at that location.
In the fourth quarter, the company opened new manufacturing sites in China and Singapore to enhance the capacity for single-use technology. These new sites are intended to meet local and global demand from biopharma customers. In South Korea, the company continues to enhance local capabilities with customer-focused innovation centers for the semiconductor industry and biopharma customers.
Price Performance
Shares of the company have declined 1.7% in the past year against the industry’s rise of 5.3%.
Zacks Rank and Key Picks
Thermo Fisher carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Addus Homecare Corporation ADUS, Merit Medical Systems, Inc. MMSI and Davita Inc DVA.
The Zacks Consensus Estimate for Addus Homecare’s 2023 earnings indicates a 10.9% year-over-year growth. The Zacks Consensus Estimate for ADUS’s 2023 earnings has moved 0.5% north in the past 30 days.
Addus Homecare has a long-term estimated growth rate of 11.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Merit Medical reported a first-quarter 2023 adjusted EPS of 64 cents, beating the Zacks Consensus Estimate by 16.4%. Revenues of $297.6 million surpassed the Zacks Consensus Estimate by 5.9%. It currently carries a Zacks Rank #2.
Merit Medical has a long-term estimated growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 20.2%.
DaVita, carrying a Zacks Rank #2 at present, has a long-term estimated growth rate of 14.6%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 17.3%.
DaVita has lost 1.9% compared with the industry’s 18% decline in the past year.
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