DUBLIN - Trinity Biotech plc (NASDAQ:TRIB), a company specializing in diagnostics and diabetes management including wearable biosensors, has been granted an extension until October 31, 2024, to demonstrate compliance with Nasdaq's continued listing requirements. The company faced a potential delisting due to its market value of publicly held shares (MVPHS) falling below the minimum $15 million threshold required by The Nasdaq Global Select Market.
The issue was first brought to light on November 21, 2023, when Trinity Biotech received a deficiency letter from Nasdaq's Listing Qualifications Department. The letter indicated that the company had not met the MVPHS requirement for 30 consecutive business days. In response, Trinity Biotech engaged with the Nasdaq Hearings Panel on July 16, 2024, to discuss a plan to regain compliance and requested the extension that has now been granted.
The company's current focus includes the development and marketing of diagnostic systems for both point-of-care and clinical laboratory use. It also recently expanded into the wearable biosensor market following the acquisition of assets from Waveform Technologies Inc. Trinity Biotech aims to launch a continuous glucose monitoring product as part of its new biosensor range.
In other recent news, Trinity Biotech has made strides in its operations with significant revenue growth and strategic partnerships. The company anticipates Q2 2024 revenues to range from $15.5 to $16.0 million, a year-over-year increase from $13.9 million. This growth is attributed to the successful sales of their new HIV screening product, TrinScreen HIV.
In a recent development, Trinity Biotech has also embarked on a distribution agreement with MedScience, a subsidiary of Pharmed Group. This partnership seeks to distribute Trinity Biotech's products within the United Kingdom. Further, Trinity Biotech has announced the appointment of Louise Tallon as its new Chief Financial Officer, a move expected to support the company's strategic growth.
Despite reporting a net loss from continuing operations in Q1 2024, Trinity Biotech remains focused on its growth strategy. This includes plans to manufacture four times as many TrinScreen HIV tests compared to the previous year and the development of a new continuous glucose monitoring (CGM) device. As part of their financial targets, the company aims 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. These are recent developments that reflect Trinity Biotech's commitment to capturing market opportunities.
InvestingPro Insights
As Trinity Biotech plc (NASDAQ:TRIB) strives to meet Nasdaq's continued listing requirements, the company's financial situation presents a complex picture. Notably, Trinity Biotech operates with a significant debt burden and is quickly burning through cash, as highlighted by two InvestingPro Tips. These challenges are underscored by analysts' expectations, suggesting the company will not turn a profit this year and has not been profitable over the last twelve months.
InvestingPro Data offers a glimpse into the company's current valuation and performance metrics. Trinity Biotech's market capitalization stands at approximately $29.34 million, reflecting its size within the industry. The company's price-to-earnings (P/E) ratio is currently negative at -0.48, indicating that it is not generating net earnings at present. Over the last twelve months, the adjusted P/E ratio has further declined to -1.78, reinforcing concerns about profitability.
While the financial outlook may seem challenging, Trinity Biotech has experienced strong returns over the last month, with a 51.96% increase, and over the last three months, with a 79.19% increase in price total return. These gains reflect investor optimism and could be linked to strategic moves such as the expansion into the wearable biosensor market. However, it is important to note that the company does not pay a dividend, which could be a consideration for income-focused investors.
For those interested in a deeper analysis, there are additional InvestingPro Tips available on the platform to help investors make more informed decisions about Trinity Biotech's stock. Visit https://www.investing.com/pro/TRIB for further insights and expert analysis.
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