Shares in Trinity Biotech gained more than 8 per cent yesterday in anticipation that it will be the prime beneficiary of proposals from US health authorities to radically expand voluntary HIV screening in that market.
Trinity operates in the "rapid" HIV testing segments and its shares rose in morning trading by 13 cent or 8.39 per cent to €1.68.
The rise followed the publication by the US Centre for Disease Control and Prevention (CDC) of new recommendations designed to make voluntary screening for the condition a routine part of medical care for all patients aged 13-64.
The company's house broker Davy described the recommendation as a "major boost" for the HIV testing market and said it may provide the potential to increase the revenue expected from that part of Trinity's business.
"As the CDC decision is not mandatory, it is difficult to know precisely how much of an impact it will have on the level of HIV testing carried out or if it will be via lab-based or rapid testing. However, it can only expand the potential market for all players in the space," said Davy analyst Jack Gorman.
While noting that the group's Orasure product provides only 3 per cent of its revenues, Mr Gorman said that Trinity's rapid HIV tests carried a higher gross margin (80 per cent) than the overall group (48-50 per cent).
"Our 2006 forecast currently anticipates that the company will generate $4.2 million (€3.28 million) in revenues from this segment, rising to $5.1 million in 2007. This may now have upside," he said.
CDC director Dr Julie L Gerberding said new approaches were required to reach 250,000 Americans with HIV who do not know they are infected.
"People with HIV have a right to know that they are infected so they can seek treatment and take steps to protect themselves and their partners," said Ms Gerberding.
The CDC said its recommendation aimed to simplify HIV testing and increase early diagnosis.
"Despite prior CDC recommendations for routine testing for high-risk individuals and for all patients in settings with high HIV prevalence, many patients with unrecognised HIV infection access healthcare but are never tested for HIV. "
