By Fineline Cube 
US-based life sciences giant Thermo Fisher Scientific Inc. (NYSE: TMO) is reported by the Financial Times to be evaluating the divestiture of its underperforming diagnostic business segment, with an estimated valuation of USD 4 billion. The company has recently engaged advisors to approach private equity firms to assess interest in select diagnostic units, including its microbiology division responsible for manufacturing infectious disease testing equipment.
Business Overview and Financials
The diagnostic units under consideration generate approximately USD 300 million in annual adjusted earnings and contribute about USD 1.4 billion in annual revenue. This represents roughly one-third of Thermo Fisher’s professional diagnostics segment. According to two sources, the company aims to secure a sale price exceeding the USD 4 billion valuation.
Market Context and Company Response
This potential divestment comes amid significant volatility across the healthcare sector. Thermo Fisher’s shares have declined 20% since the beginning of this year, with competitors Danaher (DHR) and Becton Dickinson (BDX) experiencing 11% and 23% drops respectively. Investors are expressing concerns that potential budget cuts by the National Institutes of Health (NIH) under President Trump may impact Thermo Fisher’s sales. However, CEO Marc Casper has maintained that the impact of NIH reductions would be less than projected. The company has also committed to USD 2 billion in additional US investments over four years this April.-Fineline Info & Tech