Gustavo Ballvé on April 1st, 2010
Healthcare, Home, Industries, Investment Themes, Pharma, Portfolio Management

Brazilian newspaper Valor Econômico featured an article today (in portuguese) on one of our global favorites: Thermo Fisher. It’s an opportunity to continue learning about a company that we’ve dealt with since 2006, after a Value Investing Congress presentation by Glenview’s Larry Robbins. It’s always great when a global analysis effort pays unexpected dividends.

The company is a $10 billion enterprise that caters mainly to the life sciences (drug development) and industrial markets. Thermo is not dear to us for its state-of-the-art technology (albeit it does sport a couple of interesting high-end divisions in mass spectrometry and specialty diagnostics), nor for its powerful distribution channel drawn from the Fisher acquisition in 2006 – it’s for the combination of both strengths (the acquisition was largely misinterpreted by the markets at the time).

The article talks about the company’s definitive entry into the Brazilian market with sales force of its own and technical support staff, aiming at customers in mining, steel, oil & gas. This is an extension of Thermo’s global distribution network and a good opportunity for the company in high-growth emerging markets. The possibility of a future domestic manufacturing operation was also discussed. This could mean a great move on a country with such high import barriers for high-priced goods.

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We’ve mentioned Thermo quite briefly here on Buysiders as it was one of the “picks and shovels” ways to play the increased healthcare spending trend.

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