Thermo Fisher Doubles Down On US Manufacturing In $2B Expansion Plan
Thermo Fisher Scientific Inc. (NYSE:TMO) announced Thursday that it would invest an additional $2 billion in the U.S. over the next four years.
As one of the largest manufacturers of medicines in the world, Thermo Fisher enables biopharma companies to develop and produce their medicines in America.
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These additional investments to the company’s American manufacturing capacity support a resilient U.S. healthcare supply chain and will have a strong multiplier effect across the American economy.
The $2 billion investment over the next four years includes:
- $1.5 billion in capital expenditures to enhance and expand U.S. manufacturing operations
- Complemented by $500 million in R&D focused on high-impact innovation
Thermo Fisher CEO Marc N. Casper explained that by expanding in the U.S., the company ensures that “life-saving medicines and therapies will continue to be developed and produced in America for decades to come.”
This investment builds on Thermo Fisher’s 64 U.S. manufacturing operations in 37 states.
The company also invests $1 billion annually in R&D in the U.S.
Over the next four years, the company will continue to expand its impact in the U.S. by creating high-paying jobs, adding manufacturing and lab services capacity, and investing in research and development.
On Wednesday, Thermo Fisher said that it expects U.S.-China tariffs to hurt sales in China for products made in the U.S. The company estimates this will reduce revenue by $400 million in 2025. These tariffs will also raise the cost of parts and subassemblies sourced from China.
After accounting for lower sales and higher costs—despite efforts to reduce the impact—the company expects adjusted operating income to take a $375 million hit compared to previous guidance.
Analyst Reactions on Thursday:
- Baird maintains Thermo Fisher Scientific with an Outperform, lowering the price target from $603 to $573.
- Wells Fargo maintains Thermo Fisher with an Overweight rating and lowers the price target from $580 to $570.
- Evercore ISI maintains Thermo Fisher with an Outperform, lowering the price target from $585 to $500.
- Stifel reaffirms the Buy rating for Thermo Fisher, lowering the price target from $665 to $620.
Price Action: TMO stock is down 2.57% at $420.55 at the last check Thursday.
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