Why Did Trinity Biotech Plunge 12.71% Despite WHO Approval?

On June 25, 2025, Trinity Biotech's stock experienced a significant drop of 12.71% in pre-market trading, marking a notable decline in its share price.

Trinity Biotech recently announced a 1-for-5 reverse stock split, which means shareholders will now hold one share for every five shares they previously held. This move is part of the company's broader strategy to improve its financial performance and achieve sustainable profitability.

The World Health Organization (WHO) has granted Trinity Biotech approval for the offshored and outsourced upstream manufacturing of its TrinScreen™ HIV rapid test. This approval is a significant milestone for the company, as it aims to enhance gross margins, reduce fixed costs, and improve supply chain resilience. The transition to outsourced production aligns with Trinity Biotech's strategic goals of operational efficiency and market expansion.

Despite these positive developments, Trinity Biotech faces significant financial challenges, including declining revenues and high leverage. Technical indicators suggest a downtrend with potential overbought conditions, which has led to a negative valuation outlook for the stock. These persistent challenges weigh heavily on the overall score of the company's stock performance.