Thermo Fisher logged the highest quarterly increase of 2020 in its Q3 financial statement, with sales related to Covid-19 leading the surge
Medical device manufacturer Thermo Fisher has reported a 36% increase in its Q3 revenue for the third quarter when compared to the same period last year.
The increase was largely driven by the pandemic, with demand for equipment and reagents related to Covid-19 accounting for 31% of total growth, as well as $2bn of the $8.5bn the company made in total revenue.
The result marks the third consecutive quarterly increase on last year’s revenue for the company, with it logging a 10% boost to $6.9bn in Q2 and a 2% increase to reach $6.2bn in Q1.
Thermo Fisher chairman, president and CEO Marc N. Casper said: “We further accelerated our exceptional growth momentum in the third quarter.
“Our teams executed very well to build on our leadership in supporting the global pandemic response and also captured opportunities to grow our base business.
“We’ve continued to meet Covid-related customer demand by launching new products across our company, such as tests and automated workflows to accurately diagnose the virus and enable society’s return to work and school.
“At the same time, we’re adding new capabilities, including scaling up production of sample collection products and essential laboratory supplies as well as increasing our pharma services capacity to support new therapies and vaccines.
“The combination of all these activities is creating a strong foundation for future growth.
“We’re on track to deliver a record year, and importantly, positioning our company for an even brighter future.”
Thermo Fisher’s Q3 pre-tax operating profit grew 97% year-on-year to $2.8bn.
Thermo Fisher Q3 segment breakdown
In a call discussing Thermo Fisher’s Q3 financial results, Casper said growth in the diagnostics and healthcare segments of the Thermo Fisher business increased by 130% year-on-year.
This segment includes both proprietary Covid-19 diagnostic test kits as well as reagents used for laboratory-developed tests, along with sample collection products and instrumentation.
“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,” Casper said in the company’s earnings call.
On the same call the company’s CFO Stephen Williamson broke down how each segment of the Thermo Fisher business contributed to its Q3 results.
In Life Sciences Solutions – which includes products related to genetic sciences and biosciences – Q3 revenue increased 101% year-on-year, contributing $3.4bn in revenue.
The specialty diagnostics segment logged a revenue increase of $1.4bn, an increase of 63% on 2019’s Q3, while the laboratory products and services segment increased by 19%, contributing $3.1bn in revenue.
The analytical instruments segment was the only area of the Thermo Fisher business to record a revenue decrease, dropping by 2% in Q3 and contributing $1.34bn to the total.
From a geographical standpoint, Thermo Fisher’s combined business activities grew 40% in North America, 25% in Europe and 20% in the Asia Pacific region.