DUBLIN - Trinity Biotech plc (NASDAQ:TRIB), a biotechnology company focused on diagnostics and diabetes management, has announced the acquisition of Metabolomics Diagnostics, an Irish company specializing in biomarker-based diagnostics. The acquisition, valued at approximately $1.3 million, comprises over 270,000 Trinity Biotech ADS and a cash balance, along with the assumption of liabilities.
The deal provides Trinity Biotech with a deep-tech platform that combines mass spectrometry and machine learning for advanced diagnostic solutions. A key product of this acquisition is the PrePsia test, which can predict the risk of preeclampsia in pregnant women as early as the 12th week of pregnancy. This early detection could allow for interventions to prevent serious health issues for mothers and babies.
Trinity Biotech plans to commercialize PrePsia in the U.S. market in 2025 through its New York-based Immco reference laboratory, with expectations for it to contribute to revenues that year. The company intends to manufacture PrePsia test reagents in-house, leveraging its expertise and existing infrastructure for rapid market introduction.
The acquisition aligns with Trinity Biotech's strategy to integrate its capabilities with innovative technologies, addressing significant clinical issues, particularly in maternal and fetal health. John Gillard, President and CEO of Trinity Biotech, emphasized the strategic importance of the acquisition and its expected accretive nature to the company's franchise.
Dr. Robin Tuytten, Director of Metabolomics Diagnostics, will join the Trinity Biotech management team. He expressed confidence in Trinity Biotech's manufacturing and regulatory expertise to bring their maternal risk screening diagnostics to the market.
Preeclampsia affects up to 5% of pregnancies and can lead to serious health complications, including premature delivery. The PrePsia test's predictive ability at week 12, as demonstrated in peer-reviewed papers, represents a significant advancement in maternal health.
This acquisition is part of Trinity Biotech's broader initiative to develop a range of diagnostic tests in the maternal health sector, enhancing its diagnostic innovation pipeline. The information for this article is based on a press release statement.
In other recent news, Trinity Biotech has unveiled plans to launch its Continuous Glucose Monitoring technology in India. The company has also revised its 2024 sales revenue forecast for its rapid HIV test, TrinScreen HIV, from $8 million to approximately $10 million. Trinity Biotech has also made strategic staffing decisions, appointing Adrian Donohue as its new Chief Commercial Officer, David Ouston as its new Biosensor Marketing Director, and Louise Tallon as its new Chief Financial Officer.
The company has entered a distribution agreement with MedScience to distribute its products within the United Kingdom and has been granted an extension until October 31, 2024, to meet Nasdaq's listing requirements. Trinity Biotech's Q2 2024 revenues are projected to range from $15.5 to $16.0 million, a year-over-year increase from $13.9 million.
These recent developments are part of Trinity Biotech's broader efforts, including its acquisition of biosensor assets from Waveform Technologies Inc. and its aim to achieve approximately $20 million of annualized run-rate EBITDASO on annualized run-rate revenues of around $75 million by the second quarter of 2025.
InvestingPro Insights
As Trinity Biotech plc (NASDAQ:TRIB) takes a significant step in expanding its diagnostic capabilities with the acquisition of Metabolomics Diagnostics, it's important for investors to consider the company's financial health and market performance. InvestingPro data reveals a market capitalization of $11.83 million, reflecting the company's current valuation in the market. Despite the promising technology that Trinity Biotech is acquiring, the company operates with a significant debt burden and has not been profitable over the last twelve months. This context is critical when evaluating the potential long-term benefits of the acquisition.
InvestingPro Tips suggest that Trinity Biotech's stock is currently in oversold territory, as indicated by the RSI (Relative Strength Index), which could mean that the stock is undervalued or due for a rebound. However, with analysts not anticipating profitability this year and a significant price drop over the last three months, the stock's performance remains uncertain. Trinity Biotech does not pay a dividend to shareholders, which is a notable consideration for income-focused investors.
InvestingPro Data metrics provide further insight into the company's financial state, with a negative P/E ratio of -0.75 and a decline in revenue growth of -19.01% over the last twelve months as of Q2 2024. The company's gross profit margin stands at 34.27%, which may offer some solace as it indicates the company's ability to control its cost of goods sold relative to its sales.
For a more comprehensive analysis and additional InvestingPro Tips on Trinity Biotech, investors can visit their page on InvestingPro.
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