Big pandemic-related growth in 2021 is allowing Thermo Fisher Scientific (TMO) to now expand into new areas to serve science and prepare for the next medical crisis before it hits.
Marc Casper, chairman, president and CEO of Thermo Fisher, which makes tools and diagnostics for the life sciences industry, told Jim Cramer on a recent episode of the Mad Money TV show about changes in the industry.
Casper said that Thermo Fisher had a spectacular year in 2021 and grew over 20%, including the largest acquisition in the company's history.
The first thing it did with its pandemic windfall was dramatically increase investments outside of vaccines and testing. Thermo Fisher has ramped research and development from $1 billion to $2.5 billion to fuel a robust pipeline of new products it hopes will power the company for years to come.
Real Money Pro Columnist Bruce Kamich reviewed the charts on Thermo Fisher recently. “The overall view of the TMO charts is mixed but with the weakness in the broader market averages a cautious approach is warranted” Kamich wrote. “”Avoid the long side for now.”
In December, Thermo Fisher announced that it has completed its acquisition of PPD, Inc., a leading global provider of clinical research services to the biopharma and biotech industry, for $17.4 billion.
When asked what is still needed to get past this pandemic and ahead of the next one, Casper said America needs a holistic approach that includes surveillance for viruses and sequencing to quickly identify threats.
The nation needs diagnostics and testing to prevent the spread, Casper told Cramer. And it needs therapeutics that can treat patients and reduce anxiety levels. Casper said Thermo Fisher is well positioned to assist in all of these areas and has the capacity to help manufacture vaccines as well, Casper said.
