Thermo Fisher (TMO) Extends Collaboration With Symphogen

Thermo Fisher Scientific, Inc. TMO recently announced the continuation of its collaboration with Symphogen -- a clinical-stage antibody oncology-focused company, pioneering the application of complex mAb mixtures for cancer therapy. The extension of the collaboration is intended to support biopharmaceutical discovery and development.

The recent development is likely to fortify Thermo Fisher’s Laboratory Products and Biopharma Services segment.

More on the Collaboration

In 2018, Thermo Fisher began its collaboration with Symphogen to accelerate innovation in biopharmaceutical characterization. Since 2018, Symphogen has adopted new and innovative instruments and software to enhance data quality and processes to develop, test and routinely implement platform workflows for intact and native mass analysis of therapeutic monoclonal antibody (mAb) mixtures.

Recently, the execution of the Thermo Scientific Orbitrap Exploris MX Mass Detector enables for the highest level of data confidence and an efficient workflow, with seamless method transfer from development instruments. This new system adds to Symphogen’s range of High-Resolution Accurate Mass (HRAM) mass spectrometry technologies, including Thermo Scientific Q Exactive Plus Orbitrap Liquid Chromatography-Tandem Mass Spectrometry (LC-MS/MS) system and others.

Notably, these systems will be managed using the Thermo Scientific Chromeleon Chromatography Data System (CDS) software, enabling secure, remote operations and data processing from anywhere worldwide, offering working flexibility and improved data protection.

Significance of the Extended Collaboration

Per Thermo Fisher’s management, the extension of the collaborative relationship with Symphogen demonstrates Thermo Fisher’s continued commitment to tackle tangible scientific challenges within the biopharmaceutical industry. Further, investment in this collaboration will enable critical insights that will be utilized directly into the development of new analytical tools, providing meaningful impact to the characterization of complex biotherapeutics.

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The extension of the collaboration is intended to provide biopharmaceutical discovery and development laboratories with advanced tools and streamlined workflows for efficient characterization of complex therapeutic proteins, aiding the creation of new cancer treatments.

Industry Prospects

Per a report by MARKETSANDMARKETS, the global drug discovery services market is projected to reach $31.4 billion by 2026 from $16.1 billion in 2021, at a CAGR of 14.3%. Rising R&D expenditure in the pharmaceutical & biopharmaceutical industry, increasing demand for outsourcing analytical testing services, initiatives for research on rare diseases and orphan drugs, and the high cost of in-house drug development are the factors driving the market.

Recent Developments

In January 2022, Thermo Fisher entered into a 15-year strategic collaboration agreement with Moderna MRNA to enable dedicated commercial large-scale manufacturing capacity for Spikevax, Moderna’s COVID-19 vaccine, and other investigational mRNA medicines in Moderna’s pipeline in the United States. With the expansion of collaboration, Moderna will further leverage Thermo Fisher’s scale and depth of capabilities to continue to transform its mRNA platform and bring new breakthrough medicines to patients worldwide.

In December 2021, Thermo Fisher completed its colossal $17.4-billion acquisition of PPD, Inc., a renowned global contract research organization (CRO) providing clinical research services to the biopharma and biotech industry. Per management, the addition of PPD's leading clinical research services expands the company’s value proposition for its biotech and pharmaceutical customers, strengthening its work in bringing life-changing therapies to market that benefit patients worldwide.

Price Performance

Shares of the company have gained 24.1% in a year against the industry's fall of 1.1%.

Zacks Rank and Key Picks

Thermo Fisher currently carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the broader medical space are McKesson Corporation MCK and Bio-Rad Laboratories, Inc. BIO.

McKesson, carrying a Zacks Rank #2 (Buy), reported third-quarter fiscal 2022 adjusted earnings per share (EPS) of $6.15, which beat the Zacks Consensus Estimate of $5.38 by 14.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

McKesson has a long-term earnings growth rate of 11.8%. MCK has gained 60% compared with the industry’s 11.3% growth in the past year.

Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. It currently has a Zacks Rank #2.

Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in the trailing four quarters, the average surprise being 66.9%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.