Yahoo Finance Thermo Fisher (TMO) Expands Central Lab Footprint in Kentucky
Thermo Fisher Scientific Inc. TMO recently announced the expansion of its central laboratory operations in Kentucky under its PPD clinical research business.
The new 65,000-square-foot space in Covington, KY, will expand the company’s sample management and biorepository operations. The latest development will be in addition to its existing site in nearby Highland Heights.
The latest addition will help TMO to accelerate pharmaceutical and biotech customers’ delivery of safe, effective medicines to patients.
More on the News
The new laboratory building involves a $47.8 million investment, with renovation and construction expected to start later this year.
The PPD clinical research business has operated a central lab operation in Highland Heights that includes central lab services, biomarker operations, sample management, and testing to support new therapeutics, including vaccines and cell and gene therapy products. The renovation of an existing building in Covington should enhance its lab footprint.
This expansion is expected to offer 250 new jobs across the two sites — Highland Height and Covington — over the next eight years.
About Central Lab
The Highland Heights central lab offers safety testing, including automated chemistry, urinalysis and hematology, anatomic pathology, flow cytometry, microbiology and molecular assays. It has more than 600 analytical laboratory staff, scientific and support professionals, and Ph.D.-level scientists.
The central lab also offers a wide variety of other services, such as clinical sample management, processing and storage, kit design and preparation for the collection of clinical samples, and sample testing services. The biomarker lab provides support for regulated biomarkers with immunoassays, flow cytometry and molecular assays.
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Industry Prospects
Per a report from Future Market Insights, the global central lab market was estimated at $2.6 billion in 2023 and is expected to reach $4.5 billion in 2033, at a CAGR of 5.8%. The primary factors responsible for the market surge include an increase in clinical trials and an increase in the prevalence of genetic illnesses, new medications, and medical gadgets that are constantly being developed through clinical trials at such modern facilities, and also a pressing need to lower the expense of pharmaceutical research and development processes.
Hence, Thermo Fisher’s latest addition to the central laboratory operations in Kentucky has turned out to be in favor of market growth.
Other Recent Developments
Earlier this month, the company announced a new clinical research laboratory building at its good manufacturing practices (GMP) lab in Middleton, WI, under its PPD clinical research business. The new addition of a 72,500-square-foot building is likely to improve clinical development and laboratory services by expanding the site’s chemistry, manufacturing, and control (CMC) analytical capabilities. This, in turn, should help its customers to provide high quality and safety standards for patients.
Last month, Thermo Fisher introduced the Gibco CTS OpTmizer One Serum-Free Medium (CTS OpTmizer One SFM), a novel animal origin-free formulation designed specifically for clinical and commercial cell therapy manufacturing to deliver increased scalability and performance of T cell expansion. Its ready-to-use, one-part medium can help cell therapy manufacturers scale their manufacturing from process development to clinical trials and commercial manufacturing while maintaining consistent performance.
Price Performance
In the past year, TMO’s shares have risen 6.5% compared with the industry’s 3.1% growth.
Zacks Rank and Key Picks
Thermo Fisher currently carries a Zacks Rank #3(Hold).
Some better-ranked stocks in the broader medical space are Hims & Hers Health, Inc. HIMS, The Joint Corp. JYNT, and Medpace Holdings MEDP. While Hims & Hers and The Joint currently sport a Zacks Rank #1(Strong Buy) each, Medpace carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hims & Hers Heath stock has surged 121.6% in the past year. Estimates for the company’s 2024 earnings have moved north 11.1% to 20 cents per share in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%.
Estimates for The Joint’s 2024 earnings per share (EPS) have remained constant at 21 cents in the past 30 days. In the past year, shares of JYNT have surged 4.3% compared with the industry’s 5.4% growth.
In the last reported quarter, JYNT delivered an earnings surprise of 300%. It has a trailing four-quarter average earnings surprise of 18.75%.
Estimates for Medpace’s 2024 EPS have remained unchanged at $11.29 in the past 30 days. Shares of the company have surged 72.3% in the past year compared with the industry’s 5.8% growth.
MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.8%. In the last reported quarter, it delivered an earnings surprise of 30.6%.
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