Why Thermo Fisher (TMO) Is Up 8.0% After FDA Expands Oncomine Dx Use in Lung Cancer Therapy

• Thermo Fisher Scientific announced that its Oncomine Dx Target Test has received FDA approval as a companion diagnostic to identify non-small cell lung cancer patients who may benefit from the newly approved HERNEXEOS® (zongertinib tablets), developed by Boehringer Ingelheim.
• This approval expands the test’s clinical use and strengthens Thermo Fisher’s presence in precision oncology diagnostics through a key collaboration with a major pharmaceutical partner.
• We'll examine how the FDA approval for broader cancer testing capabilities could further support Thermo Fisher's long-term investment case.

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Thermo Fisher Scientific Investment Narrative Recap

To be a shareholder in Thermo Fisher Scientific, you need to believe in the ongoing expansion of precision medicine and diagnostic testing, supported by the company’s innovation, partnerships, and global reach. The recent FDA approval of the Oncomine Dx Target Test as a companion diagnostic broadens Thermo Fisher’s clinical footprint in oncology, which could help drive adoption and revenue. However, the biggest short-term catalyst remains momentum in pharma and biotech manufacturing, while persistent weakness in China and funding headwinds in academic/government markets continue to be the most important risks, this specific news, while positive, does not appear to materially shift either in the near term.

Among recent announcements, Thermo Fisher’s enhanced Oncomine genomic profiling solution, now offering next-day results, is especially relevant. This development reinforces the company’s strength in delivering high-impact, rapid testing platforms to support pharmaceutical innovation and underscores its capacity to scale precision diagnostic offerings, a recurring theme across its major growth catalysts.

In contrast, investors should remain aware of the ongoing risk posed by international revenue exposure, particularly the impact of economic challenges and tariff issues in China, which...

Read the full narrative on Thermo Fisher Scientific (it's free!)

Thermo Fisher Scientific is projected to achieve $49.8 billion in revenue and $8.9 billion in earnings by 2028. This outlook assumes a 4.8% annual revenue growth rate and a $2.3 billion increase in earnings from the current level of $6.6 billion.

Uncover how Thermo Fisher Scientific's forecasts yield a $550.28 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Fourteen members of the Simply Wall St Community have shared fair value estimates between US$393.23 and US$667.16 per share. This broad range of perspectives sits alongside persistent international revenue risks that could influence the company’s outlook, so consider exploring alternative viewpoints for a fuller picture.

Explore 14 other fair value estimates on Thermo Fisher Scientific - why the stock might be worth as much as 38% more than the current price!

Build Your Own Thermo Fisher Scientific Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Thermo Fisher Scientific research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Thermo Fisher Scientific research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Thermo Fisher Scientific's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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