Hidden within Trinity Biotech's recent earnings call transcript lies a revelation: the company is positioning its continuous glucose monitoring (CGM) technology not just as a more affordable option, but as a champion for environmental sustainability. This under-the-radar strategy could be a powerful Trojan horse, allowing Trinity to infiltrate a market dominated by giants like Abbott and DexCom while appealing to a growing segment of environmentally conscious consumers.

While the headlines focused on Trinity's ambitious transformation plan and the promising growth of its TrinScreen HIV product, CEO John Gillard subtly unveiled the company's CGM strategy. He highlighted the reusable applicator and transmitter that form the core of Trinity's CGM solution, contrasting it with the single-use, non-recyclable applicators employed by its larger competitors.

Gillard emphasized the environmental impact of these single-use applicators, calculating that over two years, a user of a leading CGM product would generate over 11 pounds of non-recyclable plastic and metal waste. This, he argued, presents a significant cost barrier to broader adoption and contributes to a growing environmental problem.

Trinity's reusable applicator and transmitter, by contrast, dramatically reduce both the cost and waste associated with CGM use. Gillard estimates that their CGM solution could be at least 40% less expensive than current market leaders. This affordability, combined with the eco-friendly design, positions Trinity's CGM not just as a budget alternative, but as a more responsible choice.

"The strategic brilliance of this approach lies in its ability to tap into the growing consumer demand for sustainable products. Studies have shown that consumers, particularly millennials and Gen Z, are increasingly willing to pay a premium for products that align with their environmental values. This trend has yet to fully penetrate the medical device industry, giving Trinity an opportunity to carve out a unique position."

Projected EBITDASO Growth

Trinity Biotech is projecting significant EBITDASO growth based on their transformation plan, driven by both revenue increases and cost reductions. The chart below shows their projected annualized run-rate EBITDASO.

Trinity is playing a long game. They are building a team of world-class designers and engineers to create a next-generation CGM solution that prioritizes usability, affordability, and sustainability. By focusing on these three core themes, they aim to reach as many people as possible with this life-saving technology while minimizing environmental impact.

While the market may not yet be fully aware of Trinity's strategic emphasis on sustainability, the company is clearly laying the groundwork for a powerful and disruptive entry into the CGM market. Their Trojan horse strategy, disguised as affordability, could very well lead to a significant shift in the CGM landscape, benefiting both consumers and the environment.

"Fun Fact: Trinity Biotech's founder, Ronan O'Caoimh, is a former member of the Irish rock band, The Boomtown Rats. Maybe a little rock 'n' roll spirit is exactly what's needed to shake up the CGM market."