Original from: Genomeweb

Thermo Fisher Scientific on Wednesday morning reported a 1 percent increase in fourth quarter revenues and a 22 percent rise in full-year 2021 revenues. The company also raised its revenue and earnings guidance for 2022.

For the quarter ended Dec. 31, the Waltham, Massachusetts-based firm booked $10.70 billion in revenues, up from $10.55 billion in Q4 2020 and beating the average analyst estimate of $9.29 billion. 

Organic revenues decreased 4 percent in Q4, acquisitions increased revenues by 6 percent, and currency translation effects dampened revenues by 1 percent. The firm saw 8 percent organic growth from its base business in the quarter, and COVID-19 response revenue contributed $2.45 billion to revenues.

"We had an outstanding 2021, as we continued to execute our proven growth strategy, powered by our PPI Business System, and operated with speed at scale to help our customers and governments around the world advance their important work," said Marc Casper, Thermo Fisher's CEO, chairman, and president, in a statement.

"Customer demand is strong, our core business is performing very well, we're gaining market share, and we continue to play a leading role in the societal response to COVID-19," he added in a conference call to discuss the firm's financial results.

Revenues in the life sciences solutions segment fell 5 percent in Q4 to $4.15 billion from $4.37 billion a year ago, and 8 percent organically. Strong growth in the bioproduction and biosciences businesses was offset by lower revenue in the genetic sciences business due to lower testing-related revenue compared to the year-ago quarter.

Casper noted, though, that the Mesa Biotech rapid PCR technology that Thermo Fisher acquired last year has been doing well. He said it has been deployed in pharmacies, doctors' offices, and at events, and that the company is working on expanding its testing menu beyond COVID-19 and respiratory disease.

Analytical instruments Q4 revenues grew 5 percent to $1.73 billion year over year from $1.64 billion, and 6 percent organically. Growth was driven by the electron microscopy, chromatography, and mass spectrometry businesses. 

Specialty diagnostics revenues declined 27 percent to $1.45 billion from $1.97 billion, and 26 percent organically. Strong growth in the transplant diagnostics and immuno-diagnostics businesses was offset by lower COVID-19 testing revenues compared to the year-ago quarter.

Laboratory products and biopharma services revenues grew 16 percent to $4.20 billion in Q4 from $3.62 billion a year ago, and 5 percent organically. About $375 million in revenues came from PPD, the clinical research business Thermo Fisher acquired last year.

Net income in Q4 totaled $1.66 billion, or $4.17 per share, down from $2.50 billion, or $6.24 per share, for the year-ago quarter. Adjusted EPS for the quarter was $6.54, beating the consensus analyst estimate of $5.27.

R&D costs increased 4 percent in Q4 to $392 million from $376 million the previous year, and SG&A costs climbed 9 percent to $1.96 billion from $1.79 billion a year ago.

For full-year 2021, Thermo Fisher booked $39.21 billion in revenues, up 22 percent from 32.22 billion in 2020 and beating the consensus analyst estimate of $37.65 billion. Organic revenues grew 17 percent, acquisitions increased revenue by 3 percent, and currency translation effects grew revenues by 2 percent. The firm's base business saw 14 percent organic growth and COVID-19 response revenues totaled $9.23 billion in 2021.

Life sciences solutions revenues grew 28 percent year over year to $15.63 billion from $12.17 billion, and 23 percent organically. Analytical instruments revenues rose 19 percent to $6.07 billion from $5.12 billion, and 17 percent organically; specialty diagnostics revenues increased 6 percent to $5.66 billion from $5.34 billion, and 5 percent organically; and laboratory products and services revenues grew 21 percent to $14.86 billion from $12.25 billion, and 15 percent organically.

R&D costs grew 19 percent in 2021, to $1.41 billion from $1.18 billion the year before, and SG&A expenses climbed 19 percent to $6.84 billion from $5.76 billion.

Net income for 2021 totaled $7.73 billion, or $19.46 per share, up from $6.38 billion, or $15.96 per share, in 2020. Adjusted EPS was $25.13, beating the average analyst estimate of $23.78.

Thermo Fisher finished 2021 with $4.48 billion in cash and cash equivalents.

The company raised its revenue and earnings guidance for 2022. "This increase is a result of both the strong performance of our core business and an increase in the assumption for COVID-19 testing-related revenue," Casper said.

Thermo Fisher now expects $42 billion in revenues for the year, $1.5 billion more than previously. This represents 7 percent revenue growth over 2021 and 8 percent core organic revenue growth. The PPD clinical research business, in particular, is expected to deliver $6.5 billion in revenues in 2022. 

CFO Stephen Williamson explained that four factors contributed to the revenue guidance raise: a $1 billion increase in anticipated COVID-19 testing revenues, a $900 million increase in core revenues, a $500 revenue decrease due to foreign exchange effects, and a $100 million increase in revenues from recently acquired recombinant protein manufacturer PeproTech.

He said the company currently assumes $1.75 billion of COVID-19 testing revenue in 2022 but could imagine "scenarios where testing demand could be higher."

Casper added that once COVID-19 becomes pandemic, Thermo Fisher expects about $100 million in related molecular diagnostic testing revenue per quarter, or $400 million per year. The company currently believes this will start happening in Q3 but Casper cautioned this assumption may change depending on "how the pandemic plays out."

Thermo Fisher also raised its EPS guidance by $1.07 to $22.43 per share.In morning trading on the New York Stock Exchange, Thermo Fisher's shares were up 2 percent, at $606.14.

Source: Thermo Fisher Scientific Revenues Grow 1 Percent in Q4, 22 Percent in 2021