A handful of major diagnostics companies are flush with unprecedented gains from COVID-19 testing revenues. Hologic is using its COVID windfall to reshape its business in a post-pandemic world even as investors worry that the momentum is unsustainable.
If COVID-19 is reshaping the world order, it is also accelerating change in the diagnostics industry, where the major companies are reaping the rewards of global demand for COVID-19 testing. This has been recently highlighted in the latest qurterly financial results, where ThermoFisher Scientific Inc., Danaher, Abbott Laboratories Inc., Quidel Corp. and Hologic Inc., have reported double-digit and in some cases triple-digit quarterly year-on-year gains, due largely to COVID-19 testing. ThermoFisher, for example, saw first-quarter non-GAAP earnings per share rise 145% and revenues rise 59%, including 150% growth in its clinical diagnostics business.