What are the key factors behind Thermo Fisher's expense changes in Q4 2024?

Thermo Fisher Scientific Inc. (TMO) experienced several notable changes in expenses in Q4 2024, which can be attributed to a combination of strategic initiatives, market conditions, and business segment performances. Here are the key factors behind these changes:

1. **Strategic Acquisitions**: Thermo Fisher has been actively pursuing strategic acquisitions to enhance its capabilities and expand into new markets. For instance, the acquisition of Olink Holdings is expected to drive growth in the high-growth proteomics market. Such acquisitions often lead to increased expenses related to integrating new operations and technologies.
2. **New Product Launches**: The company has launched several high-impact innovations, including the Thermo Scientific Iliad scanning transmission electron microscope and the Applied Biosystems magnetic sequential DNA RNA kit. Marketing and selling these new products incurs additional expenses, including research and development, marketing, and sales costs.
3. **Expansion of Bioproduction Capacity**: Thermo Fisher is expanding its bioproduction purification resin capacity, which is used in the mRNA manufacturing process. This expansion requires significant investments in equipment, facilities, and workforce, leading to increased expenses.
4. **Currency Fluctuations**: As a global company with operations in various countries, Thermo Fisher is exposed to currency fluctuations. Changes in exchange rates can affect the company's financial results, particularly when consolidating foreign subsidiaries.
5. **Runoff of Vaccine and Therapy Revenue**: The company's Pharma and biotech segments experienced a low single-digit decline due to the runoff of vaccine and therapy revenue. This decline in revenue can lead to reduced expenses related to production and sales of these products.
6. **Organic Revenue Growth**: Despite the challenges, Thermo Fisher has seen strong growth in its electron microscopy business and research and safety market channel. The growth in these segments can lead to increased expenses related to scaling up operations and meeting the demands of a growing customer base.

In summary, Thermo Fisher's expense changes in Q4 2024 are primarily driven by strategic investments for growth, new product launches, and the impact of market conditions on specific business segments. These factors collectively influence the company's financial performance and position it for future growth.