Thermo Fisher Scientific is selling its microbiology business to European private equity firm Astorg for approximately $1.075 billion. The company is also conducting a $1 billion share repurchase before the sale closes, while its stock is in recovery.
On 12 August, Thermo Fisher reached an agreement to sell its microbiology business to Astorg for approximately $1.075 billion. The transaction is expected to reduce its 2026 revenue outlook by approximately $200 million, while the company conducted a share repurchase of approximately $1 billion ahead of its earnings release. The stock recently closed at $629.27, representing an approximately 45% increase from its low.
In its earnings update, the company announced an upward revision to second-quarter revenue and raised its full-year forecast. The upside is supporting the stock’s valuation, while the market is questioning what justifies buyers paying the current share price of $629.
From a valuation perspective, the NTM EV/EBITDA multiple remains elevated at approximately 20.95x, and many believe the stock offers less value than IQVIA and other companies. The price target under the mid-case scenario is approximately $828, with the gap between the growth expectations priced into the stock and its valuation becoming a key issue.
The CEO’s share sale was conducted under a Rule 10b5-1 plan and is viewed as a strategic sale, while the market is focused on whether operating performance will continue to improve. Over the medium term, growth in the clinical research franchise and DynaDrive is expected to support profitability.