After a busy year of buildouts, Thermo Fisher sets plans for growth in 2023
Last year, Thermo Fisher expanded widely across the US and abroad. This year, however, it’s expecting a big dip in vaccine and therapeutics revenue.
The company brought in $44.92 billion in revenue last year, a growth of 15%, with revenues in the fourth quarter totaling $11.45 billion, a 7% growth from 2021. On the investment call, Thermo Fisher CEO Marc Casper said that its pharma and biotech sector had “impressive performance” with growth in the low teens for the quarter and mid-teens for the year.
Casper said that growth this year was driven by product launches and improvements to its capabilities, as well as leveraging the manufacturer’s “scale in emerging markets.”
“We continue to strengthen our capabilities serving these markets during the year and highlight a recent example. In the quarter we opened the new cGMP biologics and sterile manufacturing facility in Hangzhou, China, which provides integrated clinical and commercial drug substance and drug product capabilities to help customers in China and the Asia Pacific region,” Casper said on the call.
In 2023, Thermo Fisher is expecting to reach $45.3 billion in revenue, marking a growth of around 7%. CFO Stephen Williamson said on the investor call that the company is expecting $400 million in testing revenue, and anticipates a return to more “normal market growth conditions in 2023.”
Williamson also stated that Thermo Fisher is expecting $500 million of revenue for vaccines and therapies in 2023, which is $1.2 billion less than in 2023.
In speaking to investors on the call, Casper said the figure is related to Thermo Fisher’s pharma services activity, including active pharmaceutical ingredients for therapies and sterile fill finish services for vaccines and some drugs.
Thermo successfully expanded its footprint in the US throughout 2022. In its home state of Massachusetts, the manufacturer opened a $160 million, 85,000-square-foot facility in Chelmsford, MA, and a $180 million, 300,000-square-foot site in Plainview, MA.
It has also opened manufacturing sites in Tennessee, Ogden, UT, and New York State.