Thermo Fisher (TMO) Expands Biologics Network With New Facility
Thermo Fisher's (TMO) Lengnau site will offer biopharma companies a pathway from development to large-scale production.
Thermo Fisher Scientific Inc. TMO recently announced the opening of a new biologics manufacturing site in Lengnau, Switzerland. The commencement of this new operational responsibility came on the heels of Thermo Fisher’s previously-announced strategic partnership with CSL Limited.
For investors’ note, in May 2020, Thermo Fisher entered into a strategic partnership with CSL Limited to meet the increasing demand for biologic therapies while also accelerating CSL's broader manufacturing objectives.
The opening of the Lengnau site is a significant expansion of Thermo Fisher's biologics manufacturing network, including Princeton, NJ, and St. Louis, MO, USA; Groningen, NL; Brisbane, AU; and Hangzhou, China. Following the construction, the Lengnau site will become part of Thermo Fisher's global biologics manufacturing network.
More on the New Lengnau Site
The 1.5 million-square-foot Lengnau site facility will utilize highly flexible bioproduction technologies, including single-use and stainless steel with up to 12,500L bioreactor capacity. As manufacturing needs evolve, the new site will offer biopharma companies a pathway from development to large-scale production.
Following the completion of site construction in 2022, Thermo Fisher will initially support manufacturing CSL's next-generation recombinant factor IX product Idelvion for patients with hemophilia B. Further, Thermo Fisher is planning to expand the utilization of the site to incorporate additional biopharma customers over time.
Per Thermo Fisher’s management, through the partnership with CSL, the Lengnau site further fortifies the unique customer value proposition to leverage the scale and depth of capabilities for pharma and biotech customers.
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Thermo Fisher is allowing customers to start their projects and stay with the company as their manufacturing requirements develop with the addition of new high-volume stainless-steel capabilities in Lengnau.
In September 2021, Thermo Fisher announced its plans to set up a manufacturing facility in Nashville intended to produce single-use technologies (SUT) products. The Nashville site is part of Thermo Fisher's more than $650-million capital investment to expand its bioprocessing production capabilities across 11 manufacturing sites in North America, Europe and Asia. The site in Nashville plays a vital role in Thermo Fisher's global network to continue to support the biopharma industry's work in developing life-saving biologics and vaccines.
In July 2021, Thermo Fisher announced the opening of a new current good manufacturing practice (cGMP) plasmid DNA manufacturing facility in Carlsbad, CA. The new facility will enable the company to meet the growing demand for plasmid DNA-based therapies and vital mRNA-based vaccines.
Per a report by MARKETSANDMARKETS, the global biologics market size is expected to reach $749.62 billion in 2028, at a CAGR of 10.8%.
Increasing awareness regarding the usefulness of cellular and gene-based biologics to treat various diseases, especially rare conditions, coupled with the rising prevalence of chronic and rare diseases across the globe, is driving the market.
Shares of the company have gained 27% in a year’s time compared with the industry’s rise of 11.8%.
Zacks Rank and Key Picks
Currently, Thermo Fisher carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the broader medical space are Envista Holdings Corporation NVST, Neogen Corporation NEOG and Biolase, Inc. BIOL, each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.
Envista Holdings has an estimated long-term earnings growth rate of 27%.
Neogen has an estimated long-term earnings growth rate of 13%.
Biolase has a projected long-term earnings growth rate of 15%.
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