BD, Thermo Fisher, Quest and Others Release Mid-2020 Financial Reports: Who Demonstrates Stronger Commercial Conversion Capability?

Thermo Fisher Scientific is a leading global manufacturer and distributor of clinical diagnostic reagents, instruments, and supplies. The company offers a comprehensive range of scientific instruments, from basic laboratory equipment to advanced mass spectrometers and sequencers. It also sells chemicals, culture media, and antibodies for biotechnology research. Currently, Thermo Fisher Scientific has grown into a $12 billion company, serving healthcare, drug discovery, academic, government, and industrial laboratories.

Recently, Thermo Fisher Scientific announced its financial report,The announcement showed that the company's revenue in the second quarter increased by 10%, reaching $6.92 billion.In 2019, the figure stood at $6.32 billion. Organic revenue increased by 11%, while currency translation reduced revenue by 1%.

• Life Sciences Solutions segment: Revenue was $2.6 billion, compared to $1.71 billion in the second quarter of 2019.

  
  

• Analytical Instruments Segment: Revenue in the Analytical Instruments segment was $1.05 billion in the second quarter of 2020, compared to $1.32 billion in the second quarter of 2019.

  
  

• Professional Diagnostic Department:The Diagnostic segment’s revenue in the second quarter of 2020 was $990 million, compared to $940 million in the second quarter of 2019. The company divested its anatomic pathology business at the end of June 2019.

  
  

• Laboratory Products and Services Segment: Revenue in the second quarter of 2020 was $2.79 billion, compared to $2.63 billion in the second quarter of 2019.
  

Thermo Fisher Scientific stated: The primary driver of growth in the second quarter of 2020 was strong global demand related to the COVID-19 pandemic,Revenue from COVID-19-related products was approximately $1.3 billion.

Thermo Fisher Scientific's H1 Developments:

▷ July 20: To support the accelerated development of vaccines in the United States, the Biomedical Advanced Research and Development Authority (BARDA), under the Office of the Assistant Secretary for Preparedness and Response at the U.S. Department of Health and Human Services, announced funding to support Thermo Fisher Scientific’s expansion of its sterile injectable manufacturing capacity, enabling large-scale vaccine fill-finish operations.

▷ July 15: Thermo Fisher Scientific and QIAGEN announced that they had amended the terms of the acquisition agreement, raising the offer for QIAGEN shares by 10% to €43 ($49) per share. Based on this adjustment, the total acquisition price would increase by €1 billion ($1.17 billion). On July 22, QIAGEN issued a supplementary statement in response. With this development, Thermo Fisher Scientific’s acquisition of QIAGEN is essentially finalized.

▷ May 27: Thermo Fisher Scientific held an online exhibition of its new mass spectrometry platform to introduce to the public, healthcare institutions, and scientists a range of newly developed products that expand research applications on its leading Orbitrap platform.

▷ In May 2020, Thermo Fisher Scientific established a strategic partnership with global biotechnology company CSL to provide top-tier pharmaceutical services. It is reported that Thermo Fisher will leverage its pharmaceutical services network to support CSL’s product portfolio, including drug development, biologics manufacturing, sterile fill-finish, packaging, and clinical trial logistics.

Quest Diagnostics (Quest Diagnostics)

Quest Diagnostics is a U.S.-based clinical laboratory and one of the world’s leading independent medical laboratories and prominent providers of biochemical medical device testing, with operations spanning the United States, India, Brazil, and Mexico. Quest also maintains long-term, stable collaborative agreements with hospitals and clinics worldwide.

The company provides diagnostic testing services for cancer, cardiovascular diseases, infectious diseases, neurological disorders, and employment-related screenings, as well as court-ordered drug testing.Quest Diagnostics’ core business is routine and pathology testing.. Apart from its main competitor, LabCorp, Quest is a major supplier of drug diagnostic tests for cancer histology, physicians, and hospital laboratories.

Quest Diagnostics’ Revenue in Q2 2020 Was $1.83 Billion, a 6.4% Decrease from 2019; among which:

• Diagnostic Information Revenue: $1.827 million, a year-over-year decrease of 6.4%

  
  

• Revenue was $283 million, a year-over-year decrease of 7.6%;

Since its establishment in 1967, Quest Diagnostics has undergone multiple mergers and acquisitions and restructurings, and was listed on the New York Stock Exchange in 1996. Currently, Quest Diagnostics operates nearly 40 large regional diagnostic centers, more than 160 rapid-response laboratories, and over 2,300 patient service centers across the United States, processing more than 100 million specimens annually.

In short, Quest Diagnostics is a top-tier reference laboratory in the United States and worldwide. The company provides the most extensive range of diagnostic testing services through its nationwide network of laboratories and patient service centers.Quest Diagnostics is a pioneer in developing innovative diagnostic tests.

Recent Updates from Quest:

▷ On July 18, it was announced that Emergency Use Authorization (EUA) had been obtained from the FDA to use pooled samples in conjunction with its proprietary molecular diagnostic test for COVID-19.

▷ On June 20, Quest Diagnostics expanded its operations in Indiana by acquiring the extended laboratory services of Community Health Networks and St. Vincent Ascension, which are now provided through Mid America Clinical Laboratories.

▷ May 20: Walmart and Quest Diagnostics announced that seven Walmart stores in New Jersey will launch drive-through COVID-19 testing sites starting May 22. These testing sites, operated in collaboration with state and local officials, Walmart, and Quest Diagnostics, will provide testing to adults who meet the criteria set by the Centers for Disease Control and Prevention (CDC) as well as state and local guidelines. Eligible individuals include first responders, healthcare providers, other individuals exhibiting COVID-19 symptoms, and asymptomatic individuals at high risk.

Buildings Department (BD Medical)

BD is a global leader in medical technology, developing, manufacturing, and selling medical devices, instrument systems, and reagents. Founded in 1897 and headquartered in Franklin Lakes, New Jersey, BD employs more than 30,000 people in over 50 countries worldwide.

BD’s diagnostic product portfolio includes: automated blood culture systems, molecular testing systems for sexually transmitted infections and healthcare-associated infections (HAIs), microbial identification and antimicrobial susceptibility testing systems, liquid-based cytology systems for cervical cancer screening (TriPath Imaging), rapid diagnostic assays, and microbiological media.

BD’s Total Medical Revenue in 2020: $4,253 million; of which, the Medical segment accounted for $2,151 million

• Drug Delivery Solutions: Revenue of $904 million, primarily driven by strong demand for injection and vascular access devices in the United States and Europe; however, sales of these products declined in China due to the impact of COVID-19 on tendering processes.
  

  
  

• Medication Management Solutions $568 Million

  
  

• Pharmaceutical Systems: $400 Million, Pre-filled Syringes Drive Sustained Strong Growth

  
  

• Diabetes Care: $278 million
  

Life Sciences Segment Revenue: Total revenue of RMB 7.791 billion, a year-over-year increase of +7.1%

• Diagnostic Systems: Revenue of $434 million in the second quarter of 2020, a year-over-year increase of +12.9%; performance was stronger than during a typical flu season due to increased demand for COVID-19-related testing

  
  

• Pre-Analytics Systems: Revenue in the second quarter of 2020 was $400 million, representing a year-over-year increase of 10.8%. Strong growth and favorable development in developed markets were partially offset by a decline in routine specimen collection volumes, due to comparisons against the prior year’s distributor ordering patterns.

  
  

• Biological Sciences: Revenue of $280 million; a year-over-year decrease, primarily due to a significant decline in laboratory services caused by the impact of COVID-19.
  

It is worth noting that although BD’s diagnostic revenue is less optimistic than that of the global “Big Four,” BD remains an industry leader in infectious disease testing and flow cytometry.

(Agilent Technologies)

Agilent Technologies is a technology leader in the fields of chemical analysis, life sciences, electronics, and communications. In its early days, Agilent was a division of Hewlett-Packard (HP) in the United States, primarily focused on components, test and measurement, chemical analysis, and medical instruments. Later, due to the vast size of HP's assets, which made management difficult, HP underwent a strategic restructuring in 1999. It announced Agilent Technologies Inc. as the name for the new measurement company, marking Agilent's complete independence.

Agilent’s chemical analysis business primarily provides high-end instruments such as gas chromatography (GC), gas chromatography–single quadrupole mass spectrometry (GC-SQ MS), tandem quadrupole mass spectrometry (QQQ MS), and quadrupole time-of-flight mass spectrometry (Q-TOF MS).

Revenue in the second quarter of 2020 was $1.24 billion, flat compared to the same period; core business (1) decreased by 1.7% year-over-year; operating cash flow was strong at $313 million, a 24% year-over-year increase

• Life Sciences and Applied Markets Group: Agilent’s Life Sciences and Applied Markets Group (LSAG) reported revenue of $526 million, a 1% year-over-year decline.

  
  

• Agilent CrossLab Group (ACG) reported second-quarter revenue of $449 million, a 1% year-over-year decline.

  
  

• Diagnostics and Genomics Group: The Diagnostics and Genomics Group (DGG) reported second-quarter revenue of $263 million, a 3% year-over-year increase.