About Remel Inc.
Thermo Fisher Scientific preps the laboratory for research, analysis, discovery, or diagnostics. The company makes and distributes analytical instruments, scientific equipment, consumables, and other laboratory supplies. Products range from chromatographs and spectrometers to Erlenmeyer flasks and fume hoods to gene-sequencers. Moving into other areas, it offers testing and manufacturing of drugs, including biologicals. Thermo Fisher also provides specialty diagnostic testing products, as well as clinical analytical tools. The company tallies more than 400,000 customers worldwide. Its key markets are pharmaceutical and biotech, diagnostics and health care, academic and government, and industrial and applied research. Nearly half of the company's sales were generated in the US.
Thermo Fisher Scientific operates in four segments.
The Laboratory Product and Services unit, which generates some 40% of revenue, provides basics for the lab. It sells equipment (refrigerators, ovens, filtration systems), consumables (slides, dishes, flasks), and chemicals (solvents and reagents). It also includes the Research and Safety Market Channel (catalogs and access to more than 1.5 million products) and Pharma Services (clinical trials).
Life Sciences Solutions, about 25% of revenue, provides reagents, instruments, and consumables used in biological and medical research, drug discovery, and drug production. The unit's businesses are Biosciences, Genetic Sciences, Clinical Next-Generation Sequencing, and BioProduction.
Analytical Instruments, more than 20% of revenue, supplies instruments, consumables, software, and services. Its businesses are Chromatography and Mass Spectrometry, Chemical Analysis, and Materials and Structural Analysis.
Specialty Diagnostics, about 15% of revenue, offers diagnostic test kits, reagents, culture media, and instruments. Its businesses are Clinical Diagnostics, ImmunoDiagnostics, Anatomical Pathology, Microbiology, Transplant Diagnostics, and the Healthcare Market Channel.
Products from those operational units are sold under Thermo Fisher's five main brands: Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, and Unity Lab Services.
Overall, sales to its products accounts for about three-fourth of total revenue and the rest comes from services.
About half of Massachusetts-based Thermo Fisher's revenue comes from its US customers. China is the second biggest single-country market, accounting for about 10% of revenue.
The country has office, engineering, laboratory, and productions facilities worldwide, from 50 countries.
Sales and Marketing
Thermo Fisher's sales channels include direct sales, e-commerce, distributors, and catalogs. Its sales staff numbers about 13,000. The company also offers supply chain management services.
Thermo Fisher's revenue has risen 51% from 2015-2019, lifted by the company's penchant for acquisitions. Net income have enjoyed growth too for the same period.
Revenue in 2019 were $25.5 billion, an increase of $1.2 billion from 2018. Sales increased $153 million due to acquisitions, net of a divestiture.
Thermo Fisher posted a profit of $3.7 billion in 2019, $758 million above the 2018 profit, primarily due to higher sales, the gain on the sale of the Anatomical Pathology business and, to a lesser extent, productivity improvements, net of inflationary cost increases.
Cash and equivalents in Thermo Fisher's coffers totaled $2.4 billion in 2019 compared to $2.1 billion in 2018. In 2019, operations generated $5 billion, while investing and financing activities used $1.5 billion and $3.1 billion, respectively.
Thermo Fisher's growth strategy includes significant investment in and expenditures for product development. It sells its products in several industries that are characterized by rapid and significant technological changes, frequent new product and service introductions and enhancements and evolving industry standards. Competitive factors include technological innovation, price, service and delivery, breadth of product line, customer support, e-business capabilities and the ability to meet the special requirements of customers. Its competitors may adapt more quickly to new technologies and changes in customers' requirements than it can. Without the timely introduction of new products, services and enhancements, our products and services will likely become technologically obsolete over time, in which case our revenue and operating results would suffer.
The Company's growth depends in part on the growth of the markets which it serves. Any decline or lower than expected growth in its served markets could diminish demand for its products and services, which would adversely affect its results of operations and financial condition. To address this issue, it is pursuing a number of strategies to improve its internal growth, including: strengthening our presence in selected geographic markets; allocating research and development funding to products with higher growth prospects; developing new applications for our technologies; expanding our service offerings; continuing key customer initiatives; combining sales and marketing operations in appropriate markets to compete more effectively; finding new markets for our products; and continuing the development of commercial tools and infrastructure to increase and support cross-selling opportunities of products and services to take advantage of our depth in product offerings.
If the Company may not be able to successfully implement these strategies, it may not result in the expected growth of its business.
Mergers and Acquisitions
Thermo Fisher bought HighChem, Ltd., a developer of mass spectrometry software based in Bratislava, Slovakia, in 2019. HighChem's software products are used to analyze complex data and identify small molecules in pharmaceutical and metabolomics research. The acquisition becomes part of Thermo Fisher's chromatography and mass spectrometry business in its Analytical Instruments segment.
In 2019 Thermo Fisher acquired Brammer Bio, a viral vector manufacturer for gene and cell therapies, for $1.7 billion. Brammer's technologies help Thermo Fisher's biopharma customers deliver medicines based on gene therapies and gene-modified cell therapies.
Predating the acquiring company, Thermo Electron, Fisher Scientific dates back to 1902, when 20-year-old Chester Fisher bought the stockroom of Pittsburgh Testing Laboratories (established 1884) and formed Scientific Materials Co. The company's earliest products, supplied from Europe, included simple tools such as microscopes, balances, and calorimeters. It published its first catalog in 1904.
When the outbreak of WWI disrupted supplies from Europe, Scientific Materials established its own R&D and manufacturing facilities. It acquired Montreal-based Scientific Supplies in 1925 and the following year changed its name to Fisher Scientific Company. By 1935 Fisher had doubled its size, adding glass-blowing operations and an instrument shop.
During the German occupation of Greece in WWII, George Hatsopoulos, part of a well-to-do family packed with politicians and engineering professors, made radios for the Greek resistance. After the war he came to the US and became a professor of mechanical engineering at MIT. With a $50,000 loan, Hatsopoulos founded Thermo Electron in 1956 to identify emerging technology needs and create solutions for them.
In 2006 Thermo Electron merged with Fisher Scientific International in a stock-swap transaction valued at nearly $11 billion.
12076 Santa Fe Trail Dr
Lenexa, KS 66215-3594
Phone: 1 (800) 255-6730
Employer Type: Privately Owned
President, Drug Development And Commercial Europe Division: Andrew Burch
President Commercial Operations Pharmaceutical Services Group: Franco Negron
Vp And General Manager, Oem and Contract Manufacturing, Clinical Diagnostics Division: John Schueler
Employees (This Location): 505
Employees (All Locations): 4,900
Shawnee Mission, KS