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Tag Archive for: (TMO)

Mad Hedge Fund Trader

Unleashing Genomic Superpowers

Biotech Letter

In a world where the longing for personalized cancer treatments echoes the craving of superheroes for justice, Thermo Fisher Scientific (PFE) and Pfizer (PFE) have forged an alliance to expand the global reach of next-generation sequencing technologies.

Their ambitious mission? To bring a ray of hope to patients by advancing a more accurate technology that can be used against cancer.

Cancer treatment is evolving at lightning speed, shaking up the status quo and dazzling experts worldwide. In the past, most treatment options revolved around traditional approaches like radiation. But now, a new kid on the block is changing the landscape: genomics.

Genomics might sound like a fancy scientific term, but it's a captivating branch of molecular biology that holds the key to unlocking the secrets deep within our genes. By studying our genetic profile, we can diagnose cancer more precisely than ever.

One breakthrough advancement that's causing quite a stir is genomic sequencing.

This technique allows doctors to analyze an individual's genetic sequence and pinpoint their unique genetic makeup. With this information, they can devise treatments finely tuned to each person's needs.

In fact, studies have shown that genomic sequencing can help match cancer patients to the most effective treatments based on their unique genetic makeup, significantly improving survival rates and treatment outcomes.

A recent study even showcased that patients who underwent genomic-guided therapy experienced an astonishing 35% higher overall response rate than those receiving conventional treatments.

Imagine a world where there are no more blanket treatments, only personalized care that targets the source of individual cancers.

In terms of the target market, the projected size of the global genomics market is a staggering $29.1 billion by 2025, and the profound impact on cancer, as the primary target for genomic analysis, is nothing short of colossal.

Here is the next question: Is this technology truly available, accessible, and sustainable in the long run? The resounding answer is yes.

The rise of next-generation sequencing as the gold standard in selecting cancer treatments has put the spotlight on access and affordability. Sequencing technology, once the sluggish tortoise in the race, has transformed into a lightning-fast hare.

Remember the mythical "$1,000 genome?" Well, it's no longer a myth.

Thanks to the groundbreaking unveiling of the $100 genome by Ultima Genomics in 2022, the cost of whole-genome sequencing has plummeted to a fraction of its former self. As costs continue to nosedive and swiftness skyrockets, the stage is unequivocally set for a genomic revolution, with cancer patients emerging as the ultimate beneficiaries of this scientific triumph.

Consequently, the biotechnology and healthcare market stands on the precipice of a seismic shift as Thermo Fisher and Pfizer join forces to democratize genomic sequencing.

With an initial focus on lung and breast cancer patients across more than 30 countries in Latin America, Africa, the Middle East, and Asia, this duo aims to shatter the barriers that have limited access to cutting-edge testing resources.

That is, more lives are about to be touched by the power of precision medicine.

This collaboration also unveils a compelling investment opportunity. As the demand for next-generation sequencing technologies skyrockets, Thermo Fisher Scientific, the vanguard of sequencing equipment and reagents, stands poised to ride this wave of progress.

Envision sales figures soaring as they equip local laboratories, guaranteeing the possession of indispensable technology, robust infrastructure, and expertly trained personnel to orchestrate these genomic symphonies.

Meanwhile, Pfizer, not content with just making blockbuster drugs, seeks to make DNA tests more affordable for patients and enlighten healthcare providers about the tremendous benefits of genomic screening.

As the costs of sequencing continue to decrease, even enabling the elusive $1,000 genome to become a reality, the accessibility and adoption of genomic sequencing are poised to expand, paving the way for personalized cancer therapies and transforming the landscape of oncology. Can you hear the sound of stock prices ascending?

So hold onto your lab coats and stethoscopes; Thermo Fisher and Pfizer's collaboration is about to reshape the landscape of cancer treatment.

As investors, consider the potential windfall of increased demand for sequencing technologies and expansion into emerging markets.

As humanity, marvel at the possibilities that arise when genomic superheroes unite. The era of personalized medicine is dawning, and these two trailblazers may just be your ticket to ride the genomic wave of the future.

 

thermo fisher and pfizer

 

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2023-05-11 16:00:262023-05-31 18:31:54Unleashing Genomic Superpowers
Mad Hedge Fund Trader

April 27, 2023

Biotech Letter

Mad Hedge Biotech and Healthcare Letter
April 27, 2023
Fiat Lux

Featured Trade:

(THE UNDERAPPRECIATED GIANT)
(TMO)

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Mad Hedge Fund Trader

The Underappreciated Giant

Biotech Letter

Here’s a question to test your biotechnology and healthcare knowledge: Can you think of a company that doubled its earnings during the pandemic yet currently trades at a lower valuation than it did at the beginning of 2020?

The answer might surprise you. It’s Thermo Fisher Scientific (TMO).

Despite benefiting from Covid-related demand, Thermo Fisher's stock price has not kept pace with its strong sales growth. Perhaps you weren't aware of Thermo Fisher and its role in supplying researchers with essential tools for developing life-saving drugs and tests. Regardless, it's a company worth paying attention to now.

Based in Waltham, Massachusetts, this healthcare supplier is one of the world's most prominent analytical instrument, reagent, consumables, software, and service providers, catering to industries like biotechnology, clinical diagnostics, pharmaceuticals, environmental monitoring, and food safety.

With a market capitalization of over $210 billion, the company benefited greatly from Covid-19 testing, resulting in earnings per share skyrocketing from $12.35 in 2019 to over $25 in 2021.

Thermo Fisher's earnings have declined as the pandemic subsides, leading to a corresponding dip in stock price. However, this downturn looks to be temporary. Moreover, the company is still poised for growth.

Looking at the turn of events, it’s clear that investors tend to be overly fixated on the company's performance during the pandemic, which represented only a tiny part of its overall business. This should no longer be the case, especially since Thermo Fisher has already provided strong guidance, which is more critical than short-term fluctuations.

Thermo Fisher Scientific's full-year guidance was offered in February following the announcement of impressive fourth-quarter results. The healthcare supplier expects to earn $23.70 per share in 2023, alongside revenue of $45.3 billion, exceeding the average analyst projections of $23.07 per share in earnings and $43.8 billion in revenue. Nevertheless, the predicted per-share profit is lower than the previous year's $25.13.

Due to the two-year decline in earnings since the pandemic boom, the company's shares have fallen by 14% since the end of 2021. As expected, this has led to investors being spooked by the problematic comparisons to the pandemic period. Consequently, the stock is currently trading at 24 times forward earnings, which is about its five-year average and below its pandemic high of 26.6 in December of 2021.

By 2024, however, Thermo Fisher is expected to surpass its all-time high earnings, with estimated earnings per share of $26.70. This figure is expected to continue to increase, with a projection of more than $30 per share in 2025.

Given these metrics, it’s evident that Thermo Fisher is a stock worth holding onto for the long term. More importantly, its current valuation makes it an attractive option for new investors.

Despite being categorized as a growth stock, Thermo Fisher benefits from consistent, recurring revenue from customers engaged in complex research and development. This makes the shares appealing in light of recent market volatility.

Thermo Fisher is a beacon of hope in the healthcare industry, where creating drugs is complex and requires advanced tools and technologies.

For example, newer products, such as biologics and larger molecule drugs, which are produced differently and require specialized equipment, provide Thermo Fisher with excellent opportunities to shine. The company is positioned to benefit from this trend as it provides researchers and developers the necessary tools and equipment.

Notably, Thermo Fisher is agnostic to specific drugs or the success of individual companies in the industry. Hence, regardless of the focus of healthcare companies, the company remains a staple in their laboratories.

In the company's latest earnings report, the confidence that comes with supplying a range of growing healthcare end markets was evident, thanks to an aging population and increasing treatment options. Additionally, the company raised its dividend by almost 17%, and its guidance suggests 7% core organic revenue growth, excluding acquisitions.

Discussing Thermo Fisher's acquisition strategy is almost inevitable when examining the company. Through this strategy, Thermo Fisher has broadened its revenue streams, customers, geographical reach, and business segments.

For context, ten years ago, the company was more instrument-focused. If a recession had occurred during that period, it would have had a much more significant impact on the company. Today, the business is less cyclical and less vulnerable to severe downturns.

Thermo Fisher executed its acquisition strategy without raising its debt ratios too high. At the end of 2022, the company's net debt to Ebitda ratio was 2.2 times, its second lowest level since 2013. Its total debt to Ebitda ratio of 2.9 times is also below the pre-pandemic period dating back to 2013.

Furthermore, Thermo Fisher's free cash flow is expected to increase to $7.2 billion this year, nearly twice the amount in 2018. This allows the company to pursue additional acquisitions and return more cash to shareholders in the form of dividends and share repurchases, as it has been doing in recent years.

Overall, Thermo Fisher holds a winning formula. It has good returns and a management team that makes the right decisions with its cash. On top of these, the company has more than ample room for long-term growth.

 

thermo fisher

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2023-04-27 18:00:342023-05-02 00:43:41The Underappreciated Giant
Mad Hedge Fund Trader

March 14, 2023

Biotech Letter

Mad Hedge Biotech and Healthcare Letter
March 14, 2023
Fiat Lux

Featured Trade:

(A MARKET LEADER SELLING AT A DISCOUNT)
(GE), (GEHC), (MTD), (DHR), (BSX), (TMO)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2023-03-14 17:02:032023-03-14 21:17:15March 14, 2023
Mad Hedge Fund Trader

A Market Leader Selling at a Discount

Biotech Letter

The spanking new multibillion-dollar healthcare spinoff from General Electric (GE) is gradually turning into a favorite in the industry.

The healthcare company, GE HealthCare (GEHC), was officially spun out of GE last January 4, but its shares began trading around mid-December. To date, GEHC is up about 30%. The stock has been trading for roughly 23 times its projected earnings in 2023.

While that value is already above the market multiple, GEHC is still anticipated to boost its earnings at an average of approximately 15% per year until 2026.

GEHC’s fourth-quarter earnings report was pretty solid. The company recorded $4.94 billion in revenue, rising by 8% year over year compared to the previous $4.59 billion. Most of the growth came from its imaging division, which climbed 11% from $2.44 billion to $2.71 billion thanks to the increasing demand.

For this year, GEHC is projected to generate over $19 billion in sales. This estimate is conservative since the company has yet to gain traction on Wall Street. Given its solid performance thus far, the company is expected to post a higher figure in the coming months.

Not much is known about GEHC yet. Aside from being an Illinois- based healthcare company focusing on medical technology, healthcare software and analytics, patient monitoring systems, and medical equipment maintenance and repair services, the spinoff only describes itself as “a leading global precision care innovator.”

That’s a relatively vague explanation that could cover much ground, but it appears to be focused on artificial intelligence (AI) in healthcare. After all, this is a lucrative and growing market that has sustained the ever-increasing demand.

Based on its records, GEHC generates the majority of its revenue from ultrasound and imaging services and products. These segments comprise about 75% of the company’s overall revenue. The rest are from various services, including clinical networking systems and financial solutions.

At the moment, more than 4 million of GEHC’s products are installed across the globe, lending support to over 2 billion patients since 2022.

Although this sounds less exciting than the other developments in the healthcare industry, the total addressable market for the medical imaging segment is impressively huge.

In 2021, this market was projected to reach $28 billion and will reach $47.4 billion by 2030. This represents a promising compounded annual growth rate of 4.9%. Critical to this growth and expansion is the climbing number of chronic diseases, which triggered earlier and more frequent checkups.

GEHC notably ensures that it sustains its momentum and gains a larger market share. The company has invested aggressively in research and development, allocating $2.7 billion to this effort alone from 2020 to 2022.

In February, the spinoff shelled out $3 billion to acquire Caption Health, a healthcare technology company developing AI software for medical imaging. The company's flagship product, Caption AI, is an FDA-approved medical imaging software that uses AI to guide healthcare professionals in acquiring and interpreting ultrasound images.

Basically, Caption AI is designed to help healthcare professionals who may need more specialized training in medical imaging, such as primary care physicians and nurses, to accurately and confidently perform and interpret ultrasound exams.

Apart from those, Caption Health's AI technology can assist in acquiring cardiac, lung, abdominal, and musculoskeletal images. It is intended to improve patient access to quality care by reducing the need for specialized medical personnel to conduct ultrasound exams.

By leveraging AI, these services could increase the speed and accuracy of diagnoses and treatment, ultimately improving patient outcomes. Needless to say, this deal significantly bolstered GEHC’s lineup and is expected to generate more than enough revenue to cover the price the company paid for the acquisition.

Despite its promising performance, GEHC remains under the radar and underappreciated. Comparing it to its peers, such as Mettler Toledo (MTD), Danaher (DHR), Boston Scientific (BSX), and Thermo Fisher (TMO), the company’s valuation looks discounted. Considering that it has the potential to become a long-term compounder, I suggest you buy the dip.

 

gehc

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2023-03-14 17:00:142023-03-30 00:10:13A Market Leader Selling at a Discount
Mad Hedge Fund Trader

February 13, 2023

Diary, Newsletter, Summary

Global Market Comments
February 13, 2023
Fiat Lux

Featured Trade:

(HOW CRISPR TECHNOLOGY MAY SAVE YOUR LIFE)
(TMO), (OVAS), (CLLS), (SGMO)

 

CLICK HERE to download today's position sheet.

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DougD

How CRISPR Technology May Save Your Life

Diary, Newsletter

When I was a DNA scientist at UCLA 50 years ago, the team used to slack off whenever our professor was attending an out-of-town conference.

We used to take pure 200 proof ethanol the university kept on hand “for research purposes,” used it to bring our beer up to 100 proof, and then speculate about the future of our obscure, neglected field.

With the technology at hand, we predicted it would take 3,000 years to fully decode the 3 billion base pairs of a length of human DNA. It then might take another 1,000 years to manipulate our genes to accomplish something useful, like curing cancer.

Maybe it was our “enhanced” beer talking, but we were off on our bold forecast by only 2,970 years.

Dr. Craig Venter published a map of his own DNA in 2001 using sophisticated algorithms to vastly accelerate our own snail-like progress.

The second step, that of functional genetic engineering, took only another decade instead of a millennium.

Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR).

Memorize this term, write it in your diary, and put it on a post-it note on your computer.

It may save your life someday, if not add decades to your life. And it could also make you a multimillionaire if you play your cards right. More on that below.

And I count myself on becoming one of its fortunate users, once the technology goes retail, which should be soon.

If you are another DNA scientist, all I need to tell you is that CRISPR is used to manipulate segments of prokaryotic DNA containing short repetitions of base sequences.

Each repetition is followed by short segments of spacer DNA from previous exposures to a bacteriophage virus or plasmids. The protein fragments that identify and snip these crucial gene segments are called CRISPRs.

If you are the average Joe stock trader, which most of you are, suffice it to say that CRISPR technology is being developed that will enable you to edit your own DNA on a customized basis and then pass the changes on to your future generations.

This will eventually allow you to become immune to all diseases, increase your intelligence, and possibly live forever. Just cut out a bad gene and put in a new one and you and all your future decedents are fixed for good.

You only have to make it five or ten more years at the most with your current vintage DNA, and you can easily live another century.

Oh, and by the way, the company that successfully brings CRISPR products to market in an economical, cost affordable way should see its stock price rise tenfold, if not one hundredfold.

Interested?

Reading up on the research for this piece, one thought kept recurring in my mind: “I can’t believe they are already doing this NOW!”

CRISPR technology was first mooted by a Japanese researcher in 1987. It turns out that the Japanese have a huge head start in developing DNA technologies thanks to a 300-year track record in brewing potent rice wines, like sake.

By 2007, CRISPR went mainstream, attracting funding from a broad range of industries. There was initial heavy interest from the food producers, which sought to make plants and their seeds immune to common crop-destroying diseases.

Their work is partly responsible for the record crop yields that are presently crushing agricultural prices across the board.

As of today, there have been over 3,000 peer-reviewed papers published about CRISPR, each one taking us an infinitesimal step forward.

Currently, there are clinical trials underway employing CRISPR technology to fight multiple forms of cancer, herpes viruses, and advance immunosuppression in human organ transplants.

A legal battle broke out over who owns the rights to CRISPR technology, with Thermo Fisher Scientific (TMO) holdings several key patents.

OvaScience Inc. (OVAS) has started applying CRISPR to human embryos. It didn’t take long to ignite a firestorm of controversy over the prospect of permanently altering the human germline.

Will the wealthy buy their way into genetic superiority and immortality? Or will we accidentally create an organism that could wipe out the human race? Cries of “Social Darwinism” are everywhere.

Or worse, what if the Chinese make their own population immune to bioweapons which they then unleash on the rest of the world?

What if a gene treatment that cures cancer also makes individuals, aggressive, paranoid, or violent?

Talk about letting a genie out of a bottle while also opening Pandora’s Box!

Some leading scientific journals, like Nature and Science, have refused to publish some CRISPR paper over ethical concerns. Unsurprisingly, Chinese scientists have the lead in the most controversial applications.

It’s all way beyond my pay grade.

During my lifetime, I have seen science drop some real clangers.

While in Europe this summer, I saw a Thalidomide baby grown up, now in his fifties. The anti-morning sickness drug developed by a German company produced children with horrifying flippers instead of arms.

Even today, Thalidomide is held out as an example of the need for enhanced drug regulation in the US.

In the early 1950s, one doctor developed the bright idea of giving newborn babies pure oxygen. Everyone who received this treatment went completely blind for life.

And then the CIA developed LSD as a potential weapon, testing it on its own unwitting employees, who developed an unfortunate tendency to jump out of windows from high floors. We all know how that one worked out.

We already know what genes people will choose when given the opportunity to do so, instead of using the ones they inherited, the old-fashioned way.

The unregulated human artificial insemination industry makes available genotypes of every race and nationality in abundance. More than 90% choose tall, blonde, intelligent donors, inadvertently creating a financial windfall from the UC Berkeley Men’s Water Polo Team.

It is an outcome Adolph Hitler would have been proud of, as more than 1 million of these children have been born in the US alone.

Some prolific water polo players have sired more than 100 children, which are now using websites like 23andMe and Ancestry.com to find each other and socialize.

It was not in the game plan.

As is always the case with new, cutting edge, groundbreaking technologies, it is hard to find a rifle shot investment that gives you a pure play.

Many such efforts are subsumed inside huge companies where a specific technology never moves the needle. Starts ups often go bust because they can’t keep up with rapidly evolving technology.

That’s what happened to the 3D printing industry, and I can’t remember how many hard drive companies and PC makers that have gone under.

Editas (EDIT), Caribou Biosciences (CRBU), Intellia (NTLA), CRISPR Therapeutics (CRSP), and Precision Biosciences (DTIL) have all gone public over the last five years. Here is your bite of the apple.

Cellectis (CLLS) is a $1.1 billion French company that is involved in both gene editing and cancer immunotherapy. The Company has improved the quality of crops for the food and agriculture industries.

And here is the really good news.

Many of these shares have dropped 70%-80% in the last year, thanks to the generalized biotech meltdown and the wholesale flight from profitless companies. Crisper alone fell 77% top to bottom, much to my own personal financial destruction.

Many will find the prospect of living another century enticing. I might be interested if I could get back the body I has when I was 25 but still know what I know now.

The possibility of finding a stock that could rise 10 or 100 times is MUCH more interesting.

 

 

 

 

 

 

 

Cell Membrane

 

CRISPR

Putting Another 100 Years on the Clock?

https://www.madhedgefundtrader.com/wp-content/uploads/2017/12/john-old-car-e1512925077646.jpg 316 400 DougD https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png DougD2023-02-13 09:02:132023-02-13 15:39:00How CRISPR Technology May Save Your Life
Mad Hedge Fund Trader

May 4, 2022

Biotech Letter

Mad Hedge Biotech and Healthcare Letter
May 4, 2022
Fiat Lux

Featured Trade:

(A PICK AND SHOVELS BUSINESS POISED TO EXPLODE)
(TMO), (CRSP), (MRNA), (BNTX), (A), (DHR), (ILMN)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2022-05-04 17:02:402022-05-05 00:51:13May 4, 2022
Mad Hedge Fund Trader

A Pick and Shovels Business Poised to Explode

Biotech Letter

There’s never a wrong time to begin investing. In 2021, the markets generated positive buzz when things started to heat up again.

That same optimism has recently transformed into bearishness following the decline in share prices.

Nevertheless, there’s still good news.

Given the lower valuations, investors can now get more bang for their buck.

In the past two years, we’ve experienced so many unprecedented events. Among the most heavily affected by the pandemic is the life sciences sector.

One of the biggest names in this field is Thermo Fisher Scientific (TMO).

With a market capitalization of roughly $200 billion, it’s no longer accurate to describe this as an under-the-radar company. TMO has received minimal fanfare among investors despite its massive size for decades.

A key reason for this is its lowkey steady execution of a well-established or tried-and-tested strategy.

Although it lacks the pizzazz of more exciting companies these days like CRISPR Therapeutics (CRSP), Moderna (MRNA), and BioNTech (BNTX), TMO has rewarded its investors with substantial returns.

Over the last 40 years, TMO has recorded an annual growth rate of 16.5%, hitting a 27,000% return in total by 2021.

In fact, TMO came off a strong 2021.

Its sales grew by 22% from 2020 to report $39.2 billion. While acquisitions played significant roles in the company’s growth, the 17% organic revenue growth of TMO served as its primary growth driver behind its solid numbers in 2021.

Even its COVID-19-related sales, particularly its testing products, contributed to reach $9.2 billion.

Looking at TMO’s business model, it’s evident that the company offers investors great exposure to the entire healthcare field via a single investment only.

That is, TMO is a broad business. It covers practically all life sciences solutions, analytical tools, specialty diagnostics, lab items, and even clinical, biotechnology, and pharmaceutical services.

Spanning the entire industry, such portfolio of products and services allow TMO to confidently go toe-to-toe against industry heavyweights like Agilent Technologies (A), Danaher (DHR), and Illumina (ILMN).

Actually, all of its segments grew last year, with TMO showing off quicker revenue increases than its competitors in the previous five years.

Hence, it is no surprise that TMO expects its numbers to climb in 2022. For this year, the company’s projected revenue is estimated to rise by at least 7% to reach $42 billion.

TMO strategically leveraged more significant acquisitions to build its diverse and deep portfolio today.

In 2011, the company spent $3.5 billion to buy Sweden’s blood-testing firm Phadia and cleverly maneuvered a relatively cheap deal to also grab chromatography company Dionex for only $2.1 billion.

In 2013, TMO bought a fast-growing genetic testing company called Life Tech for $13.6 billion.

At that time, Life Tech was the leader in this field and already possessed the technology to become a front-runner in the personalized medicine space.

In 2016, it shelled out $4.2 billion for electron microscopy company FEI and dropped another $7.2 billion in 2017 to buy pharmaceutical contract manufacturer Patheon.

To date, TMO’s most substantial deal is its $17.4 billion acquisition of contract research business Wilmington’s PPD.

This particular deal created a gateway between the biopharma giant and other drug developers, with TMO boosting its services segment focused on its biotechnology and pharmaceutical clients.

Between 2019 and 2021, the pharmaceutical and biotechnology market has experienced a promising over 20% growth.

This field is expected to grow to an additional $20 billion in 2022, following the growing interest in the industry in this post-pandemic era.

There is another emerging sector within the pharmaceutical and biotechnology market: the precision medicine and gene sequencing field.

Taking into consideration the growing demand for the products and services from this space, this market is estimated to reach roughly $1.6 trillion by 2030. 

This makes TMO’s PPD acquisition timely, as it would allow the company to gain a bigger market share and expand its reach across the globe.

Furthermore, the previous acquisitions would bolster the company’s hold on the current market and ensure its position as a first-mover in potential groundbreaking innovations in the biotech and pharma sector.

Considering its expansion strategies and growth history, TMO doesn’t seem to be stopping anytime soon.

While the environment for mergers and acquisitions did become a bit more restrictive these days, there are still several potential buyout targets that could deliver favorable returns. So, we might hear about another TMO-linked acquisition sometime soon.

Overall, TMO is a healthcare stock offering robust and stable growth and a promising future regardless of economic downturns.

Moreover, its pick-and-shovels play makes it an excellent stock that looks poised to sustain its momentum and is well-positioned for global expansion. Hence, it would be wise to buy the dip.

 

 

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2022-05-04 17:00:332022-05-05 00:52:18A Pick and Shovels Business Poised to Explode
Mad Hedge Fund Trader

April 6, 2022

Diary, Newsletter, Summary

Global Market Comments
April 6, 2022
Fiat Lux

SPECIAL CRISPR TECHNOLOGY ISSUE

Featured Trade:
(HOW CRISPR TECHNOLOGY MAY SAVE YOUR LIFE),
(TMO), (OVAS), (CLLS), (SGMO)

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