Thermo Fisher Plans $4 Bn Sale of Diagnostics Units Amid Strategic Shift

Two individuals familiar with the negotiations said the company targets a price exceeding $4 billion.

Thermo Fisher Scientific seeks to divest parts of its diagnostics business for over $4 billion, marking a broader trend among life sciences companies to shed lower-growth assets. 

According to sources familiar with the matter, the company has initiated contact with private equity firms via advisers to gauge interest in a portion of its diagnostics operations, including its microbiology division, which produces infectious disease testing equipment.

The units under consideration for sale generate approximately $1.4 billion in annual sales and $300 million in adjusted earnings, accounting for about a third of Thermo Fisher’s specialty diagnostics segment. Two individuals familiar with the negotiations said the company targets a price exceeding $4 billion.

The potential sale arrives during a turbulent period for Thermo Fisher and the broader healthcare market. Shares in Thermo Fisher have declined 20% this year, reducing its market value to $157 billion. Analysts point to investor concerns over the potential impact of funding cuts to the National Institutes of Health (NIH) under President Donald Trump’s administration. Comparable companies like Danaher and Becton Dickinson have also seen 11% and 23% share price declines, respectively.

Thermo Fisher has not issued a public statement regarding the sale. Sources noted that the auction process may not result in a final deal, and the company could choose to retain the asset.

The move mirrors a recent decision by Becton Dickinson, which earlier this year announced plans to separate its life sciences business, including its diagnostics division. According to earlier reports by the Financial Times, Becton has also engaged private equity firms regarding a possible sale and is considering a public listing of the unit.

Thermo Fisher’s last significant divestment occurred six years ago, when it sold its anatomical pathology business to Japan’s PHC Holdings Corporation for $1.1 billion. In contrast, the company agreed earlier this year to acquire Solventum’s purification and filtration unit for $4.1 billion.

Speaking at an investor event last month, CEO Marc Casper said, “That should be a point of confidence,” while addressing concerns about NIH budget reductions. He also highlighted Thermo Fisher’s plans to invest an additional $2 billion in US manufacturing over the next four years.

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