Trinity Biotech Provides Preliminary Second Quarter 2024 Update and Enters into UK Distribution Agreement with MedScience

Rhea-AI Summary

Trinity Biotech (Nasdaq: TRIB) announces preliminary Q2 2024 revenues expected between $15.5-$16.0 million, showing significant growth from $13.9 million in Q2 2023. The company reiterates its financial guidance of $20 million annualized run-rate EBITDASO on $75 million annualized run-rate revenues by Q2 2025. Trinity also enters a UK distribution agreement with MedScience, effective August 1, 2024, covering clinical chemistry, infectious disease, and autoimmune products. This partnership aims to expand Trinity's presence in the UK market and support growth objectives. The company attributes revenue growth to initiatives like the new HIV screening product, TrinScreen HIV. Full Q2 2024 earnings report is expected mid-August, providing updates on the Comprehensive Transformation Plan and continuous glucose monitor (CGM) program.

Positive

• Q2 2024 revenues expected between $15.5-$16.0 million, showing double-digit percentage year-over-year growth
• Reiterating financial guidance of $20 million annualized run-rate EBITDASO on $75 million annualized run-rate revenues by Q2 2025
• Entered UK distribution agreement with MedScience, expanding market presence for clinical chemistry, infectious disease, and autoimmune products
• Strong revenue growth attributed to new HIV screening product, TrinScreen HIV

Negative

• None.

Insights

Financial Analyst

Trinity Biotech's preliminary Q2 2024 update reveals promising financial performance and strategic expansion. The expected revenue range of $15.5-$16.0 million represents a double-digit percentage growth year-over-year, signaling robust business momentum. This growth is particularly noteworthy given the company's Q2 2023 revenue of $13.9 million.

The company's reiteration of its financial guidance is a strong vote of confidence in its growth trajectory. Targeting $20 million in annualized run-rate EBITDASO on $75 million annualized run-rate revenues by Q2 2025 suggests an ambitious yet potentially achievable goal. This guidance implies a healthy EBITDASO margin of approximately 26.7%, indicating strong operational efficiency.

The new distribution agreement with MedScience in the UK is a strategic move that could significantly boost Trinity's market presence and sales in a key market. This partnership, covering clinical chemistry, infectious disease and autoimmune products, aligns well with Trinity's product portfolio and could be a major driver for reaching their financial targets.

Investors should note that while the revenue growth is impressive, the company mentions that gross margin percentage is expected to be broadly in line with Q2 2023. This suggests that while top-line growth is strong, there might not be significant margin expansion in the near term. The success of new products like TrinScreen HIV and the continuous glucose monitor (CGM) program will be important for future profitability and market position.

Medical Research Analyst

Trinity Biotech's focus on human diagnostics and diabetes management solutions positions it well in high-growth segments of the healthcare industry. The company's new HIV screening product, TrinScreen HIV, appears to be a significant driver of revenue growth. This is particularly important in the context of global efforts to combat HIV/AIDS, where early and accurate screening plays a important role.

The company's ongoing development of a continuous glucose monitor (CGM) is another area of potential growth. The global CGM market is expanding rapidly, driven by the increasing prevalence of diabetes and the push for more efficient disease management tools. Trinity's entry into this space could open up substantial new revenue streams if successfully executed.

The distribution agreement with MedScience in the UK is a strategic move that could accelerate the adoption of Trinity's diagnostic products. The UK market, with its robust healthcare system, represents a significant opportunity for Trinity's clinical chemistry, infectious disease and autoimmune product portfolios. MedScience's established presence and technical expertise could help Trinity overcome market entry barriers and rapidly scale its presence.

However, investors should be aware that the diagnostic and medical device markets are highly competitive and subject to stringent regulatory oversight. Trinity's success will depend on its ability to innovate, navigate regulatory pathways and effectively commercialize its products in a crowded marketplace. The company's ability to execute its Comprehensive Transformation Plan and advance its CGM program will be critical factors to watch in the coming quarters.

Market Research Analyst

Trinity Biotech's strategic moves reflect a keen understanding of market dynamics in the diagnostics and diabetes management sectors. The company's focus on HIV screening aligns with the global health priority of HIV prevention and treatment. With UNAIDS targeting 95% of people living with HIV knowing their status by 2030, there's a substantial market opportunity for efficient screening tools like TrinScreen HIV.

The partnership with MedScience in the UK is a savvy market penetration strategy. The UK's healthcare market, valued at over £200 billion, offers significant growth potential. By leveraging MedScience's established distribution network and technical expertise, Trinity can potentially accelerate its market share growth without the substantial investment required to build a direct sales force.

The company's venture into the continuous glucose monitoring (CGM) market is particularly noteworthy. The global CGM market is projected to grow at a CAGR of over 10% through 2028, driven by the rising prevalence of diabetes and increasing adoption of wearable health tech. If Trinity can successfully bring its CGM product to market, it could tap into this high-growth segment and diversify its revenue streams.

However, Trinity faces stiff competition in both the diagnostics and CGM markets. Established players like Abbott, Dexcom and Roche have significant market share and brand recognition. Trinity's success will hinge on its ability to differentiate its products, potentially through improved accuracy, user-friendliness, or cost-effectiveness. The company's ability to execute its transformation plan and meet its ambitious financial targets will be important in building investor confidence and capturing market share in these competitive but lucrative markets.

-Second Quarter 2024 revenues are expected to fall between $15.5-$16.0 million, reflecting double digit percentage year over year growth-

-Reiterating financial guidance of approximately $20 million of annualized run-rate EBITDASO¹ on annualized run-rate revenues of approximately $75 million by Q2 2025-

-Entered into MedScience distribution agreement in UK effective as of August 1, 2024 which encompasses clinical chemistry, infectious disease, and autoimmune products-

DUBLIN, Aug. 02, 2024 (GLOBE NEWSWIRE) -- Trinity Biotech plc (Nasdaq: TRIB) a commercial stage biotechnology company focused on human diagnostics and diabetes management solutions, including wearable biosensors, today announces preliminary second quarter 2024 revenues which are expected to fall in the $15.5-$16.0 million range, demonstrating significant growth, versus $13.9 million in total revenues reported for the second quarter of 2023. Gross margin percentage is expected to be broadly in line with that reported for the second quarter of 2023. Additionally, Trinity also announces entry into a distribution agreement in the United Kingdom (UK) with MedScience, an established distributor that is a subsidiary of the privately held Pharmed Group, a leading healthcare services provider across UK and Ireland. The distribution agreement encompasses Trinity Biotech’s clinical chemistry, infectious disease, and autoimmune products in the UK and is effective as of August 1, 2024.

Trinity Biotech President and Chief Executive Officer, Mr. John Gillard, stated, “Our robust year-over-year revenue growth is a testament to the initiatives we are taking to grow product sales from our new HIV screening product, TrinScreen HIV. We plan to issue our full second quarter 2024 earnings report in mid-August to provide an update on our full business activity including our Comprehensive Transformation Plan and our initiatives to advance our continuous glucose monitor (CGM) program. Additionally, we are excited to partner with MedScience, a well-known distributor in their focus markets with comprehensive geographic coverage within the UK. Its large, technically trained and experienced sales organization will enable Trinity Biotech to significantly grow its presence in the UK market across our clinical chemistry, infectious disease, and autoimmune product portfolios and further support the growth of our existing business lines and our stated financial objectives.”

MedScience Chief Commercial Officer, Mr. John Gannon further added, “We are delighted with the partnership agreement with Trinity Biotech. We have long been familiar with Trinity Biotech, their expertise, and product range, and we are looking forward to developing a long and successful relationship between our companies.”

Trinity Biotech continues to reiterate its financial guidance to achieve approximately $20 million of annualized run-rate EBITDASO² on annualized run-rate revenues of approximately $75 million by second quarter 2025.

Forward-Looking Statements

This release includes statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”), including but not limited to statements related to Trinity Biotech’s cash position, financial resources and potential for future growth, market acceptance and penetration of new or planned product offerings, and future recurring revenues and results of operations. Trinity Biotech claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterised by the terms “may,” “believes,” “projects,” “expects,” “anticipates,” or words of similar import, and do not reflect historical facts. Specific forward-looking statements contained in this release may be affected by risks and uncertainties, including, but not limited to, our ability to capitalize on our purchase of the assets of Waveform, our continued listing on the Nasdaq Stock Market, our ability to achieve profitable operations in the future, the impact of the spread of COVID-19 and its variants, potential excess inventory levels and inventory imbalances at the company’s distributors, losses or system failures with respect to Trinity Biotech’s facilities or manufacturing operations, the effect of exchange rate fluctuations on international operations, fluctuations in quarterly operating results, dependence on suppliers, the market acceptance of Trinity Biotech’s products and services, the continuing development of its products, required government approvals, risks associated with manufacturing and distributing its products on a commercial scale free of defects, risks related to the introduction of new instruments manufactured by third parties, risks associated with competing in the human diagnostic market, risks related to the protection of Trinity Biotech’s intellectual property or claims of infringement of intellectual property asserted by third parties and risks related to condition of the United States economy and other risks detailed under “Risk Factors” in Trinity Biotech’s annual report on Form 20-F for the fiscal year ended December 31, 2023 and Trinity Biotech’s other periodic reports filed from time to time with the United States Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements were made. Trinity Biotech does not undertake and specifically disclaims any obligation to update any forward-looking statements.

About Trinity Biotech

Trinity Biotech is a commercial stage biotechnology company focused on human diagnostics and diabetes management solutions, including wearable biosensors. The Company develops, acquires, manufactures and markets diagnostic systems, including both reagents and instrumentation, for the point-of-care and clinical laboratory segments of the diagnostic market and has recently entered the wearable biosensor industry, with the acquisition of the biosensor assets of Waveform Technologies Inc. and intends to develop a range of biosensor devices and related services, starting with a continuous glucose monitoring product. Our products are used to detect infectious diseases and to quantify the level of Haemoglobin A1c and other chemistry parameters in serum, plasma and whole blood. Trinity Biotech sells direct in the United States and through a network of international distributors and strategic partners in over 75 countries worldwide. For further information, please see the Company's website: www.trinitybiotech.com.

About MedScience Distribution

MedScience, part of the Pharmed Group, is a leading provider of high-quality medical and scientific equipment, consumables, and servicing across the UK. Our exclusive distribution agreements with leading global manufacturers ensure we deliver state-of-the-art products to laboratories, medical, and scientific service providers. Proudly serving public and private hospitals, primary care centres, community diagnostic hubs, pharmaceutical companies, academia, and private industries. Our purpose-built headquarters in Banbury, Oxfordshire, offer modern offices, fully serviced UK based warehousing, and in-house servicing team, ideally located for major routes around the country. MedScience is committed to providing the best products, exceptional service, and comprehensive support to meet the evolving needs of our customers.

Contact:	Trinity Biotech plc	LifeSci Partners, LLC
	Micheal Roche	Eric Ribner
	(353)-1-2769800	(1)-646-751-4363
		investorrelations@trinitybiotech.com
		RedChip Companies Inc.
		Dave Gentry, CEO
		(1)-407-644-4256
		TRIB@redchip.com

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¹ Earnings before interest, tax, depreciation, amortisation, share based payments from continuing operations – also excludes impairment charges and one-off items.

² Earnings before interest, tax, depreciation, amortisation, share based payments from continuing operations – also excludes impairment charges and one-off items.

FAQ

What are Trinity Biotech's (TRIB) expected Q2 2024 revenues?

Trinity Biotech expects Q2 2024 revenues to be between $15.5-$16.0 million, showing significant growth compared to $13.9 million in Q2 2023.

What is Trinity Biotech's (TRIB) financial guidance for Q2 2025?

Trinity Biotech reiterates its financial guidance to achieve approximately $20 million of annualized run-rate EBITDASO on annualized run-rate revenues of approximately $75 million by Q2 2025.

What new distribution agreement has Trinity Biotech (TRIB) entered into for the UK market?

Trinity Biotech has entered into a distribution agreement with MedScience for the UK market, effective August 1, 2024, covering clinical chemistry, infectious disease, and autoimmune products.

What product is driving Trinity Biotech's (TRIB) revenue growth?

Trinity Biotech attributes its robust year-over-year revenue growth to initiatives to grow product sales from their new HIV screening product, TrinScreen HIV.