Chemical company Avantor (NYSE:AVTR) recently said it expects to achieve sales growth of 5.4% in its third fiscal quarter of 2020, with biopharma and healthcare businesses driving quarterly revenues of $1.6 billion.
Avantor offers a range of ultra-high-purity materials to biopharma companies. This year, the company also created a COVID-19 division to support virus detection, therapy development, clinical trials and vaccine and therapy production services.
Avantor isn’t alone in its ability to capitalize on the COVID-19 crisis. Thermo Fisher Scientific (NYSE:TMO), for instance, has seen its stock increase roughly 50% since the beginning of the year. Danaher (NYSE:DHR), which has expanded its biopharma involvement in 2020, has won more than $1 billion in new business related to the novel coronavirus.
Avantor’s COVID-19–related businesses drove roughly 5.5% of its growth in the second quarter.
The Radnor, Pa.-based company’s stock has been “a recent outperformer,” according to a research note from UBS. Since March 18, shares in Avantor have shot up by nearly 200%, from $8.27 to $24.73 on Oct. 26, 2020. Year-to-date, however, the stock growth clocks in at 34%.
For the quarter ended Sept. 30, 2020, the company’s revenue was up 6.7% year over year.