Trinity Biotech plc TRIB has announced the acquisition of privately held Irish deep-tech company Metabolomics Diagnostics. The acquired company specializes in the development of novel biomarker-based diagnostic solutions for complex diseases and is likely to improve diagnostic accuracy using mass spectrometry and machine learning for Trinity Biotech.

Trinity Biotech’s deal values Metabolomics Diagnostics at approximately $1.3 million. Trinity Biotech will pay the amount with just over 270,000 Trinity Biotech plc’s American Depositary Shares and the rest in cash and assumption of liabilities.

Trinity Biotech's acquisition of Metabolomics Diagnostics will expedite the U.S. commercialization of the PrePsia preeclampsia test, which leverages mass spectrometry and machine learning for personalized risk assessment. This technology will enhance Trinity's existing maternal health diagnostics and serve as a long-term growth driver alongside its continuous glucose monitoring technology.

The acquisition aligns with Trinity's strategy to integrate its manufacturing expertise and Immco reference lab with Metabolomics’ advanced analytics and bioinformatics, enabling the company to address significant healthcare challenges and improve patient outcomes.

Likely Trend of TRIB Stock Following the News

Following the news release, shares of TRIB rose 4.8% to $1.31 in after-hours trading yesterday. The recent acquisition is expected to enhance Trinity Biotech's diagnostics for complex diseases and diabetes management solutions.

Significance of Trinity Biotech’s Acquisition of Metabolomics

This acquisition is crucial for Trinity Biotech as it will add advanced mass spectrometry and machine learning to its diagnostics platform. The expertise from Metabolomics Diagnostics will expand Trinity's innovation pipeline and tackle significant maternal health issues like preeclampsia. The PrePsia test can predict preeclampsia as early as the 12th week of pregnancy, potentially reducing premature births and improving maternal-fetal outcomes. By enhancing its diagnostic offerings, Trinity is well-positioned for long-term growth in both maternal health and diabetes management markets.

Trinity Biotech's robust manufacturing and regulatory expertise will facilitate the quick launch of a maternal risk screening platform, including crucial preeclampsia diagnostics, through its U.S.-based Immco lab.

More on PrePsia Preeclampsia Test

In 2023, the United States recorded 3.6 million births, with preeclampsia impacting up to 5% of pregnancies. This serious maternal health condition can threaten the lives of mothers and babies. Diagnosed at around 20 weeks through blood pressure and kidney function tests, preeclampsia often lacks effective treatments, resulting in medically induced deliveries in about 30% of cases, leading to premature births.

Trinity Biotech plans to produce PrePsia test reagents in-house and commercialize the test through its New York State-certified Immco reference lab, with revenues from preeclampsia tests expected in 2025.

Market Prospects Favoring TRIB

Per a report in Market Research Future, the maternal health market is estimated to be worth $27.5 billion in 2024. It is anticipated to reach $72.6 billion by 2034 at a CAGR of 14.6%.

The robust growth is likely to be driven by the rising demand for specialized healthcare services, as more parents are increasingly seeking consultations with super-specialists to address specific medical needs. There is also a rising trend of individuals seeking maternal healthcare services, indicating increased awareness and prioritization of maternal health.

TRIB’s Stock Price Performance

Shares of Trinity Biotech have plunged 41.7% year to date against the industry’s 14.2% growth. The S&P 500 has risen 19.9% in the same time frame.

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Favorable Earnings Surprise Trend for TRIB

Trinity Biotech has an estimated long-term growth rate of 20%. TRIB’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 15.38%.

TRIB’s Zacks Rank & Other Key Picks

Currently, Trinity Biotech carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space are Universal Health Services UHS, ATI Physical Therapy (ATIP) and Aveanna Healthcare AVAH. While Universal Health Services sports a Zacks Rank #1 (Strong Buy), ATI Physical Therapy and Aveanna Healthcare carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.

Universal Health Services has gained 41.1% compared with the industry's 34.8% growth year to date.

ATI Physical Therapy's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.25%.

ATIP's shares have gained 5.5% year to date compared with the industry’s 18.6% growth.

Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 47.5%.

AVAH's shares have surged 104.5% year to date compared with the industry’s 15.7% growth.

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