Thermo Fisher Scientific

Thermo Fisher is a globally dominant business with characteristics we like, namely high margins, good pricing power, a large proportion of recurring revenues and favourable macro factors. The business is central to the world’s healthcare R&D community and is delivering on its aims in an increasingly environmentally sustainable way.

Thermo Fisher generates very attractive profit margins and it benefits from high levels of repeatable service-related revenues. There is also the option to boost earnings through sensible acquisitions or to return excess capital to shareholders. 

Like many healthcare companies, Thermo Fisher faces risks related to product safety and the methods used to ensure products are safe for human use. The company manufactures and distributes laboratory testing products, some of which are used in animal testing.

While animal testing is often mandated by regulatory authorities to protect human health, it raises ethical concerns. Thermo Fisher also operates globally in regions with varying regulatory and labour standards, which increases the risk of non-compliance and product safety issues.

The company’s environmental impact includes high energy consumption, hazardous waste generation, and emissions associated with manufacturing and distribution.

As a key supplier to the life sciences and healthcare sectors, Thermo Fisher faces increasing pressure to enhance transparency and reduce its carbon footprint throughout its value chain.