Will Trinity Biotech Stock Gain From Its Latest Patent Process?

Trinity Biotech plc TRIB recently provided an update on its continued development of its glucose biosensor technology. Earlier this year, the company was granted a European patent for a novel method that enhances the performance of its glucose biosensor. Recent testing of this patented process has confirmed its effectiveness in improving the performance of the sensor.

Trinity Biotech intends to use this breakthrough process to stabilize and improve the functionality of its glucose biosensor in its next-generation continuous glucose monitor (CGM) technology.

Shares of TRIB went down marginally by 0.05% in pre-market trading today following the news. However, as the company is gaining a high level of synergies from its continued development within the CGM market, this latest development might prove fruitful in strengthening its foothold in this space. Accordingly, we expect market sentiment to recover shortly.

Significance of Trinity Biotech's Patented Process

CGMs are small patch-like wearable medical devices that use biosensor wires under the skin to measure glucose in real time. Generally, these devices experience a "run-in" or "settling" period immediately after their insertion. During the run-in period, glucose readings are unreliable. 

Trinity Biotech's patent describes a unique process within the company's reusable transmitter unit that "conditions" the CGM biosensor wire. This conditioning process significantly reduces this run-in time, enabling reliable measurements more quickly. 

Additionally, the conditioning process has demonstrated notable improvements in the accuracy of the CGM device compared to laboratory reference methods for blood glucose testing. The process also improves the biosensor's mean absolute relative difference, which is the standard measure of accuracy used to compare CGM devices.

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The technology covered by this patent represents a major advancement for the company's CGM platform. The CGM technology, which Trinity Biotech acquired in January, has a unique self-inserted biosensor wire. It poses strong advantages in terms of affordability and sustainability.

The patented conditioning process will likely play an important role in further enhancing the CGM technology toward a more user-friendly and self-calibrating device. Along with other refinements to the biosensor, its wire design will be further evaluated in the upcoming pre-pivotal trials to create an optimized CGM that can be rapidly introduced into global markets.

Industry Prospects Favor Trinity Biotech

Per a Coherent Market Insights report, the global CGM device market was valued at $5.89 billion in 2022 and is expected to reach $12.51 billion by 2030, at a CAGR of 9.9% during the period.

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The market's growth is fueled by rising diabetes awareness and the increasing prevalence of diabetes among the population. The worrisome rise in the number of overweight and obese people around the world is expected to boost demand for CGM devices. 

Recent Development by Trinity Biotech

In May, Trinity Biotech made a strategic collaboration with PulseAI to enhance the former's recently acquired CGM biosensor technology. Under the collaboration, PulseAI has access to Trinity Biotech's unique multi-parameter CGM database. Further, the data is used to design and implement Trinity Biotech's AI-driven health & wellness analytics platform. This platform is a key component in Trinity Biotech's CGM solution. 

Price Performance of Trinity Biotech

Year to date, shares of TRIB have lost 17.4% against the industry's 8.5% growth.

TRIB's Zacks Rank and Other Key Picks

TRIB currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space are Intuitive Surgical ISRG, TransMedics Group TMDX and Boston Scientific BSX. While Intuitive Surgical and TransMedics sport a Zacks Rank #1 (Strong Buy) each, Boston Scientific currently carries a Zacks Rank #2.

Intuitive Surgical's shares have surged 58.6% in the past year. Estimates for the company's earnings have remained constant at $6.67 per share for 2024 in the past 30 days.

ISRG's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.97%. In the last reported quarter, it posted an earnings surprise of 16.34%.

Estimates for TransMedics' 2024 earnings per share have moved up 48.1% to $1.20 in the past 30 days. Shares of the company have risen 134% in the past year compared with the industry's 12.8% growth.

TMDX's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.

Estimates for Boston Scientific's 2024 EPS have increased 1.7% to $2.40 in the past 30 days. In the past year, shares of BSX have risen 51.5% compared with the industry's 15.5% growth.

In the last reported quarter, BSX delivered an earnings surprise of 6.90%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.18%.

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