Irish medical diagnostic company Trinity Biotech has booked a $24.4 million (€22.2 million) non-cash impairment charge, is closing a facility in California and is exiting two markets in which it operates.
In more positive news, however, the group also said it was close to completing a test to quickly detect Covid-19, and developing a second test that will indicate who has immunity.
The Nasdaq-listed group on Tuesday announced a 6.8 per cent decline in 2019 revenues to $9.4 million.
Pre-tax profits were down $2.2 million versus 2018 to $800,000 as earnings before interest, tax, depreciation, amortisation and share option expense came in at $11.4 million, down from $19.4 million a year earlier.
Trinity Biotech develops, manufactures and markets diagnostic systems for the point-of-care and clinical laboratory segments of the diagnostic market. Its products are sold in more than 110 countries, and it employs more than 500 people.
Full-year point-of-care sales were down 23.2 per cent to $11.4 million, due largely to a sharp fall in HIV-related sales in the US. Clinical laboratory revenues were 3.8 per cent higher at $82.2 million.
The company said a review of the carrying value of its net assets had resulted in a non-cash impairment charge of $24 million.
In other news, Trinity Biotech said it intends to close its Carlsbad, California facility, which specialises in solutions for Lyme disease. The plant will close in June following a decision to discontinue making products for the market.
It also announced its intention to withdraw from the US HIV market due to a reduction in funding for public health testing programmes and a recommendation in favour of antigen testing that has led to a decline in sales.
Trinity Biotech said it was working on the development of a test that will determine which people have had Covid-19 and are now immune.
It is also developing a rapid point-of-care test that would be able to test for the virus in just 12 minutes.
The company said the Covid-19 crisis was negatively affecting business but it expects revenues to return to more normal levels shortly.
