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Thermo Fisher cuts 2021 Covid-19 test sales forecast by $900 million The company, one of the major providers of coronavirus tests, benefited from strong demand during the pandemic
Thermo Fisher Scientific Inc on Wednesday raised its full-year revenue outlook, but cut its COVID-19 test sales forecast by $900 million, citing slowing demand for the rest of the year as vaccinations ramp up. The company, one of the major providers of coronavirus tests, benefited from strong demand during the pandemic, but rising vaccination has hit demand for these tests and other test makers have also warned of a slump.
Shares of Thermo Fisher fell 1% to $524.71 in midday trading. "We decided that the prudent thing to do is to assume that testing moderates in the second half (of the year)" said Marc Casper, Thermo Fisher's chief executive officer, in an interview with Reuters. Thermo Fisher, the biggest maker of scientific instruments, now expects COVID-19 testing revenue of $4.9 billion for 2021, down from $5.8 billion it expected earlier. The company, however, said demand for its raw materials used in COVID-19 vaccines and therapies is likely to sustain in the year and easing of curbs led to growth in its mainstay businesses. Thermo Fisher is positioning itself where the downside scenario risks to its outlook are very low, said Atlantic Equities LLP analyst James Mainwaring, adding that the results show the strong performance of its non-COVID-19 business.