The phrase Haves and Have-Nots” accurately describes medtech companies’ performances during the pandemic. The companies with a diversified product portfolio and diagnostic testing options are doing well and fall into the Haves category. Firms that don’t have these elements are on the Have Nots list.
Thermo Fisher Scientific falls into the category of the Haves as it dominated in its 4Q21 earnings strengthened by the intense testing demand driven by the Omicron variant.
The Waltham, MA-based company said it now expects to bring in $42 billion this year, which is $1.5 billion more than guidance.
According to a transcript from the Motley Fool, Marc Casper, chairman, president and CEO of Thermo Fisher said, “In the quarter, we generated $2.45 billion in COVID 19 response-related revenue. This was driven by the emergence of the Omicron variant, which led to strong testing demand as well as our significant role in enabling vaccine and therapy production. Throughout 2021, we continue to operate with speed at scale to meet our customers' needs related to COVID-19 and generated total response revenue of over $9 billion, of which $2 billion were from vaccines and therapies.”
Testing wasn’t the only strong driver for Thermo Fisher. The company also received a boost from its PPD, its pharma and biotech clinical research service business. Thermo Fisher acquired the company for $17.4 billion in 2021.
“Our clinical research business PPD is really had a really excellent 2021, with 30% growth and it was broad-based strength across biotech, biopharma,” Casper said, according to a transcript from the Motely Fool. “All of the very important therapy areas that they're focused on, including work in the support of COVID 19 vaccines and therapies. As we look at the authorizations were very strong last year, which gives the business great momentum coming into 2022 and 2023, and we feel good to be able to grow that business in line with our core average of about 8% this year.”
There are other firms that have able to weather and overcome some of the uncertainties caused during the pandemic and fall into the Haves category.
Hologic is a prime example. While Hologic said the global chip shortage impacted its breast health division, the company was still able to increase its full year revenue outlook because its other businesses are doing well. Abbott Laboratories is another. The Abbott Park, IL-based company has been able to have strong revenues because of its leadership role in COVID-19 testing and its diversified product portfolio.
Abbott reported global COVID-19 testing-related sales of $2.3 billion in 4Q21, with $2.1 billion of that coming from the sale of rapid tests such as BinaxNOW, Panbio, and ID NOW.