Yahoo Finance Thermo Fisher (TMO) Announces the Acquisition of CorEvitas
Thermo Fisher Scientific TMO recently entered into a definitive agreement to acquire the leading biotechnology company, CorEvitas, LLC. Both companies share the culture and commitment led by science and mission, to drive innovation and improve patient outcomes.
Thermo Fisher will execute the buyout from Audax Private Equity Fund VI for $912.5 million in cash. Upon completion, CorEvitas will become part of Thermo Fisher's Laboratory Products and Biopharma Services segment.
About CorEvitas
Headquartered in Waltham, MA, CorEvitas has been serving pharma and biotech customers for more than 20 years. The company provides regulatory-grade, real-world evidence solutions to biopharmaceutical companies with objective data and clinical insights to improve patient care and clinical outcomes.
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CorEvitas operates 12 registries, including nine autoimmune and inflammatory syndicated registries across the United States, Canada, and Japan. The registries collect structured patient clinical data from more than 400 participating investigator sites in both academic and community-based settings of care. This includes a collection of biosamples linked to deep clinical data.
News in Detail
The strategic addition of CorEvitas is highly complementary to Thermo Fisher’s leading clinical research business, PPD. With approximately 300 employees, operational momentum and strong leadership, CorEvitas is well-positioned to grow its revenues organically in the low double digits, with projected revenues of $110 million in 2023.
The transaction is likely to be completed by the end of 2023, subject to customary closing conditions. The acquisition will be immediately accretive to TMO’s adjusted earnings per share of $0.03 in 2024.
Industry Prospects
Real-world evidence is considered to be a high-growth market segment, which was valued at $2.45 billion in 2022 and is expected to witness a CAGR of 8.2% by 2030.
Pharmaceutical and biotechnology customers, as well as regulating bodies, are increasingly looking to monitor and evaluate the safety of approved therapies and examine their effectiveness and value in the post-approval setting.
Recent Developments
In June 2023, TMO launched the OncoPro Tumoroid Culture Medium Kit to accelerate the development of novel cancer therapies. This is the first commercially available culture medium specifically developed for the expansion of patient-derived tumoroids or cancer organoids, from multiple cancer indications.
In addition, Thermo Fisher introduced the Metrios 6 Scanning Transmission Electron Microscope ((S)TEM) — a new-generation, fully automated (S)TEM metrology solution designed to help enhance productivity and deliver data quality assurance for high-volume semiconductor manufacturing.
Price Performance
In the past six months, TMO shares have decreased 11.8% against the industry’s rise of 3%.
Zacks Rank and Key Picks
Thermo Fisher currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall healthcare sector are Haemonetics HAE, Zimmer Biomet ZBH and SiBone SIBN. While Haemonetics sports a Zacks Rank #1 (Strong Buy), Zimmer Biomet and SiBone each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has risen 27.6% in the past year. The Zacks Consensus Estimate for Haemonetics’ earnings per share (EPS) has increased from $3.55 to $3.56 for fiscal 2024 and remained constant at $3.96 for fiscal 2025 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.21%. In the last reported quarter, the company registered an earnings surprise of 13.24%.
The Zacks Consensus Estimate for Zimmer Biomet’s 2023 EPS has remained constant at $7.45 in the past 30 days. Shares of the company have improved 36.4% in the past year against the industry’s 23.2% decline.
ZBH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.38%. In the last reported quarter, the company recorded an earnings surprise of 13.86%.
The Zacks Consensus Estimate for SiBone’s 2023 loss per share has narrowed from $1.44 to $1.42 in the past 30 days. SIBN shares have improved 95.4% in the past year compared with the industry’s 8.9% growth.
SiBone’s earnings beat estimates in three of the trailing four quarters and missed the same in one, the average surprise being 11.11%. In the last reported quarter, the company recorded an earnings surprise of 21.95%.
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Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
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