COVID-19-related tests helped push Thermo Fisher Scientific’s 3Q20 growth. The Waltham, MA-based-company brought in about $8.5 billion in revenue for the quarter, which was a 36% increase year-over-year.
Thermo Fisher Scientific said3Q20 earnings per share increased by 91% to 5.63 and it generated $2 billion of COVID-19 related revenue – returning the base business to growth.
“In diagnostics and healthcare, we had an incredible quarter, delivering 130% growth, Marc Casper, president and CEO of Thermo Fisher Scientific said according to a Seeking Alpha transcript of the earnings call. “While we continue to see the impact of a lower level of routine doctor visits and related testing, demand did improve from Q2 levels and our COVID-related testing revenue grew significantly during the quarter. We saw the benefits of these dynamics across our Life Sciences Solutions and Specialty Diagnostics businesses. As you know, our involvement here includes providing both proprietary COVID-19 diagnostic test kits as well as reagents used for laboratory-developed tests, along with sample collection products and instrumentation.”
2020 has been a year full of twists and turns for many device and diagnostic companies - the same holds true for Thermo Fisher.
The company was on the cusp of acquiring Qiagen in what would have been one of the biggest medtech deals of the year. (Editor’s note: Teladoc Health’s proposed acquisition of Livongo for $18.5 billion is the largest to date.) However, Thermo Fisher backed out of the $12.5 billion deal after Qiagen’s earnings were strengthened by coronavirus testing offerings, which caused the Venlo Netherlands-based company’s shareholders to hold on a little bit tighter.
Around the same time the Qiagen deal fell through, FDA warned that Thermo Fisher Scientific’s TaqPath test could have a risk of false results.