Siemens or be overtaken! IVD Roya Beisi four giant pattern will be broken!
             
Release Time:2024-02-12

Thermo Fisher is a world leader in serving the scientific community, with annual revenues of more than $40 billion, and a portfolio of brands that includes Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD.

Thermo Fisher released its annual report for 2023 on January 31, with annual revenue of $42.857 billion (about Rs. 308.5 billion), down 4.58% year-on-year; net profit of $5.995 billion (about Rs. 43.1 billion), down 14.44% year-on-year, and a net margin of 14.0%.
If we compare Thermo Fisher with the international IVD “big four” Roche, Abbott, Danaher and Siemens Healthcare, where does it rank?

The total revenue in 2023 will be CHF 58.7 billion for Roche, $40.1 billion for Abbott, $23.9 billion for Danaher, and €21.78 billion for Siemens Healthcare.

In terms of total revenue in 2023 alone, Roche > Thermo Fisher > Abbott > Danaher > Siemens Healthcare, with Roche a distant second, Thermo Fisher and Abbott roughly at the same level, Thermo Fisher marginally ahead, and both substantially ahead of Danaher. Danaher and Siemens Healthcare are roughly at the same level, with Danaher slightly ahead.

This comparison, however, is not very fair to Siemens Healthcare, after all, the first four are group companies, while Siemens Healthcare is just one of the many subsidiaries of the Siemens Group, which holds more than 75% of the shares of Siemens Healthcare.

If we look at the diagnostics business revenue in 2023 alone, where does Thermo Fisher rank among the five companies?

Diagnostics revenue in 2023, Roche for 14.1 billion Swiss francs (about 117.5 billion yuan), Abbott for 9.988 billion U.S. dollars (about 71.6 billion yuan), Danaher for 9.577 billion U.S. dollars (about 68.7 billion yuan), Siemens Healthcare for 4.44 billion euros (about 34.4 billion yuan).

In 2023, Thermo Fisher’s revenue in each business segment will be $9.977 billion for life science solutions, accounting for 23.3% of the total revenue; $7.263 billion for analytical instruments, accounting for 16.9% of the total revenue; $4.405 billion for diagnostics, accounting for 10.3% of the total revenue; and $23.041 billion for laboratory products and biopharmaceutical services, accounting for 10.3% of the total revenue. billion, accounting for 53.8% of total revenue.

In terms of diagnostic business revenue in 2023 alone, Roche > Abbott > Danaher > Siemens Healthcare > Thermo Fisher, Roche is still way ahead, Abbott and Danaher are almost at the same level, with Abbott slightly ahead, both are significantly ahead of Siemens Healthcare, and Danaher diagnostic business revenue is about twice as much as Siemens Healthcare.

Siemens Healthcare and Thermo Fisher’s diagnostics businesses are almost at the same level, with Siemens Healthcare slightly ahead, only 8.5% more than Thermo Fisher.

How long will it take roughly for Thermo Fisher’s diagnostics business to overtake Siemens Healthcare?

Thermo Fisher has four major business segments, Laboratory Products and Biopharmaceuticals, Life Sciences, Analytical Instruments, and Diagnostics, while Siemens Healthcare has four major business segments, Imaging, Diagnostics, Varian, and Advanced Therapeutics.

To see the future development trend of the diagnostic business, mainly to see the synergy between the enterprise’s various business segments and the diagnostic business, it is obvious that between Thermo Fisher’s several major business segments and the diagnostic business, there is a stronger synergy, especially the diagnostic business accounted for the race of Thermo Fisher’s total business of only 10%, is the smallest proportion of the business segments, the future of the development potential is greater.

Assuming that Thermo Fisher’s diagnostic business grows at 8% since 2024 and Siemens Healthcare’s diagnostic business growth rate stays at around 2%, Thermo Fisher is expected to surpass Siemens Healthcare in diagnostic business in the next two years.