DUBLIN - Trinity Biotech plc (NASDAQ:TRIB), a company specializing in human diagnostics and diabetes management, has acquired EpiCapture Limited, a firm developing a non-invasive test for aggressive prostate cancer risk assessment. The acquisition, announced today, signals Trinity Biotech's entry into the oncology diagnostics market.
Prostate cancer is the most common non-skin cancer in American men, with significant diagnosis and treatment costs. The EpiCapture test aims to improve patient quality of life by reducing the need for invasive prostate biopsies, which can lead to complications. Utilizing urine samples, the test employs epigenetic analysis to identify DNA methylation patterns indicative of high-grade cancer, potentially offering a less invasive and more accurate method for monitoring disease progression.
In a study published in The Journal of Clinical Oncology "Precision Oncology," the EpiCapture test, alongside the prostate-specific antigen (PSA) test, successfully predicted all high-grade cancers. John Gillard, CEO of Trinity Biotech, expressed enthusiasm for the strategic move into oncology and molecular diagnostics. He emphasized the company's intent to leverage its manufacturing capabilities and Immco reference laboratory certification to further develop and commercialize the EpiCapture technology.
Associate Professor Antoinette Perry, the inventor of the EpiCapture test from University College Dublin, welcomed the acquisition, expressing confidence in Trinity Biotech's ability to bring the test to market and improve patient outcomes.
The transaction involved an initial consideration of approximately $3 million and an additional $0.5 million contingent on future milestones, paid through the issuance of around 1.7 million American Depository Shares in Trinity Biotech. EpiCapture is a spin-out of NovaUCD, part of University College Dublin.
Trinity Biotech plans to capitalize on its three decades of diagnostic product experience to introduce the EpiCapture test in the US and explore regulatory pathways for other markets. The company also announced a separate strategic investment in Novus Diagnostics today.
This news is based on a press release statement from Trinity Biotech. The company cautions that forward-looking statements within the press release are subject to risks and uncertainties and invites readers to refer to the detailed risk factors outlined in their annual report and other SEC filings.
In other recent news, Trinity Biotech has made significant strides in various areas. The company has announced a strategic investment in Novus Diagnostics, a firm specializing in rapid sepsis testing technology, to advance the development and commercialization of its diagnostic tools. This move follows Trinity Biotech's acquisition of EpiCapture Limited, which is developing a non-invasive test for aggressive prostate cancer monitoring.
Trinity Biotech has also successfully completed a key pre-pivotal clinical trial in Europe for its innovative continuous glucose monitoring (CGM) technology. This achievement marks a significant milestone following the acquisition of Waveform Technologies' assets. The company also plans to conduct an in-country study in India as part of its global launch strategy for this technology.
In terms of acquisitions, Trinity Biotech has acquired Metabolomics Diagnostics, a company specializing in biomarker-based diagnostics. This acquisition is expected to enhance Trinity Biotech's diagnostic capabilities, particularly in maternal and fetal health.
Additionally, Trinity Biotech has made several strategic staffing decisions. The company has appointed 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.
Finally, Trinity Biotech has revised its 2024 sales revenue forecast for its rapid HIV test, TrinScreen HIV, from $8 million to approximately $10 million. The company projects Q2 2024 revenues to range from $15.5 to $16.0 million, a year-over-year increase from $13.9 million.
InvestingPro Insights
Trinity Biotech's acquisition of EpiCapture Limited marks a significant strategic move into the oncology diagnostics market. This expansion comes at a critical time for the company, as recent financial data from InvestingPro reveals some challenges and opportunities.
According to InvestingPro data, Trinity Biotech's market capitalization stands at $17.32 million USD, reflecting its current position in the market. The company's revenue for the last twelve months as of Q2 2023 was $58.65 million USD, with a revenue growth of 8.6% over the same period. This growth suggests that Trinity Biotech's core business has been expanding, which could provide a foundation for integrating new technologies like EpiCapture.
However, InvestingPro Tips highlight some financial concerns. The company is currently operating with a significant debt burden and is quickly burning through cash. These factors may have influenced Trinity Biotech's decision to acquire EpiCapture through a stock-based transaction rather than a cash purchase, preserving liquidity for operations and development.
Despite these challenges, the market seems to be responding positively to Trinity Biotech's strategic moves. An InvestingPro Tip notes a strong return over the last month, with the 1 Month Price Total Return showing an impressive 53.78%. This surge could indicate investor optimism about the company's new direction in oncology diagnostics.
It's worth noting that analysts do not anticipate the company will be profitable this year, according to another InvestingPro Tip. This aligns with the reported Operating Income of -$12.83 million USD for the last twelve months as of Q2 2023. The acquisition of EpiCapture and the investment in Novus Diagnostics may be seen as steps toward improving future profitability by diversifying into high-potential markets.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of Trinity Biotech's financial position and growth prospects. There are 7 additional InvestingPro Tips available for Trinity Biotech, which could offer valuable context for evaluating the potential impact of this acquisition on the company's future performance.
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