Thermo Fisher Expands Agreement – Analyst Blog

Thermo Fisher Scientific Inc. (TMO) recently expanded its clinical trial materials supply chain relationship agreement with Eli Lilly and Company (LLY). Per the new five-year agreement, Thermo Fisher will take over the responsibility of Lilly’s in-house clinical trial materials manufacturing, packaging and labeling operations at the Lilly Technology Center in Indianapolis.

 

The Fisher Clinical Services segment of Thermo Fisher will handle this transition and expects it to be completed by this summer. Furthermore, the segment will handle the distribution of clinical trial materials for Lilly throughout North America by the end of 2010.

 

The new agreement includes the purchase of Lilly’s clinical trial manufacturing and packaging equipment. This was done to reduce a portion of Lilly’s fixed costs. Eli Lilly has designed a new operating model that speeds the delivery of innovative medicines to patients while reducing fixed costs. Lilly employees who will be impacted by this transition will have the opportunity to apply for suitable positions in Fisher Clinical Services.

 

Thermo Fisher and Eli Lilly have been working together for two decades. The new agreement ensures the delivery of high quality clinical trial material to clinical trial sites around the world.

 

Headquartered in Indianapolis, Indiana, Eli Lilly and Company develops, manufactures and sells pharmaceutical products worldwide. The company is developing a growing portfolio of pharmaceutical products by applying the latest research from its own laboratories around the world and from collaborations with eminent scientific organizations.

 

Headquartered in Waltham, Massachusetts, Thermo Fisher Scientific Inc. was formed through the merger of Thermo Electron Corporation with Fisher Scientific International Inc. in November 2006. Thermo Fisher Scientific serves its customers through two principal brands, Thermo Scientific and Fisher Scientific.

 

Thermo Fisher offers a wide range of products and technology to its customers. This differentiates the company from its peers and gives it a competitive edge.

 

Presently, we have a ‘Neutral’ recommendation on Thermo Fisher.