TMO - Both Revenue And Cost Synergies For The PPD-Thermo Fisher Scientific Combination As From 2022

• Thermo Fisher Scientific has announced that it will acquire PPD for $47.50 per share.
• After having covered many biotechs for SA, I make sense of this acquisition from the perspective of pharmaceutical research, where PPD operates.
• In this case, by serving its pharma and biotech customer base through a one-stop solution, TMO stands to benefit from significant revenue and cost synergies.
• I also consider the regulatory and talent-related risks.
• TMO has surged since I last covered it, with momentum indicators pointing to a drop, possibly to the $590-600 level, thereby constituting an opportunity to buy for those who do not own the stock.

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