- Trinity Biotech (TRIB, Financial) secures WHO approval for outsourced manufacturing of its TrinScreen™ HIV rapid test.
- The new manufacturing model is expected to improve gross margins, reduce fixed costs, and enhance supply chain resilience.
- Implementation is slated for Q3 2025, aligning with strategic goals for financial and operational transformation.
Trinity Biotech (NASDAQ:TRIB) has received World Health Organization (WHO) approval to offshore and outsource the upstream manufacturing of its high-volume TrinScreen™ HIV rapid test. This strategic move is a significant part of the company's transformation plan focused on financial turnaround and sustainable profitability.
The transition from in-house to an outsourced manufacturing model is anticipated to deliver several financial advantages, including enhanced gross margins through reduced production costs, improved working capital by decreasing inventory investments, and increased scalability to better align production with demand. This approach is expected to convert significant fixed costs into variable expenses, a critical aspect for the financial restructuring of the company.
Trinity Biotech plans to implement this new manufacturing model by the third quarter of 2025. Investors can anticipate seeing the positive financial effects in late 2025, with the full impact likely reflected in the 2026 financial statements. This move not only addresses core challenges in cost structure but also aligns with broader industry trends of outsourcing production for better economies of scale.
The WHO approval is deemed a milestone in maintaining product integrity and regulatory compliance while transitioning to a cost-efficient model. Trinity Biotech is strategically focusing on TrinScreen™, a cornerstone product, to maximize financial impact while minimizing operational disruptions during the transition.
