Trinity Biotech plc Q2 FY2024 earnings call

• Growing TrinScreen HIV revenues: Continued ramping up of TrinScreen HIV production with over 50% q-o-q point-of-care revenue growth, implemented manufacturing automation, outsourced less complex aspects of HIV production, and pursued new commercial opportunities at the International AIDS conference.
• Comprehensive transformation plan: Progressed in three pillars - consolidate/offshore manufacturing (completed technical transfer of HIV manufacturing, moving HbA1C manufacturing), optimize supply chain (transitioned hemoglobin instrumentation supply chain to lower cost providers), and centralize offshore corporate services (identifying functions to transfer to new location).
• Continuous glucose monitoring (CGM): Designed prototypes, roadtesting with user groups, working on digital interfaces, initiated prepivotal clinical trials, on track for pivotal trials by summer 2025 and EU approval by end 2025, aiming for a more affordable and sustainable CGM solution.

Point-of-care revenue saw over 50% quarter-on-quarter growth in Q2 2024, driven by TrinScreen HIV sales of approximately $3.1 million, which was a significant increase from $1.2 million in Q1. Clinical laboratory revenues were $11.3 million in Q2 2024, a 4.6% decrease compared to Q2 2023. The clinical chemistry portfolio grew by over 20% year-over-year, but this was offset by lower hemoglobins revenues, down 10.8% year-over-year primarily due to lower instrument sales. The point-of-care revenue contribution was substantial from TrinScreen HIV's growth, while clinical laboratory had mixed performance with chemistry growth and hemoglobin instrument challenges.

• Reiterate annualized run rate revenues of approximately $75 million and EBITDASO of approximately $20 million by Q2 2025.
• Expect TrinScreen HIV to be on track for $8 million revenue in 2024 with potential upside.
• Anticipate clinical chemistry growth to continue and Premier instruments to improve, expecting overall clinical laboratory business to be positive by Q4 2024.

• Risks associated with forward-looking statements as outlined in SEC filings.
• Uncertainties in the scale and outcome of CGM pivotal trials.
• Potential challenges in manufacturing transitions and supply chain optimizations.

Q: How did TrinScreen HIV compare to internal expectations and what's the full-year outlook?

A: It met expectations; on track for $8 million revenue in 2024 with potential upside.

Q: What drove clinical chemistry growth and is it sustainable?

A: Price increases and market availability challenges; likely sustainable in short to medium term.

Q: When will new Premier instruments be available and impact on clinical laboratory?

A: Focus on new column system being rolled out; expect overall clinical laboratory business to be positive by Q4 2024.

Q: Details on CGM trial design and trials compared to previous?

A: Prototypes need user feedback to narrow design; trials involve in-body sensors with different protocols; scale and trial type (global vs individual) still unknown.

Q: Impact of new distribution partner for clinical chemistry products?

A: Expected to be positive, providing access to new sales contacts in the U.K.

Q: Relationship with MiCo?

A: MiCo made public filing of disposing of investments late last year/early this year