Shares in Trinity Biotech, the Irish-registered but Nasdaq-listed bio-technology company rose sharply for the second successive day on Nasdaq, after five of the company's directors bought substantial volumes of shares under the share option scheme.
The share purchases, together with the recently-announced financial results for 1997 and an expansion of the group's manufacturing capacity in Dublin, has seen Trinity's shares rise by 33 per cent from $1.94 at last Wednesday's close to $2.69 last night. The share buying by the directors has been particularly warmly received in the market as a sign that further growth is likely.
The 2.25 million shares acquired brings the number of shares in issue to 21.3 million and values Trinity at $57.4 million (£42 million) at yesterday's price in the market of $2.69. That price compares with a high last year of $3 in June and a low of $1.60 at the end of 1997.
The expansion of the manufacturing operations could see as many as 100 jobs created in Dublin. Trinity has said that it has purchased a new 42,000 square foot plant which will replace a plant in Britain which is being closed down and whose infectious disease products are being relocated to the new Dublin plant. As a result, Trinity will now have two manufacturing plants - in Dublin and Jamestown, New York - with a total square footage of 66,000 square feet compared to the previous threeplant operation with 53,000 square feet.
Trinity chief executive, Mr Ronan O'Caoimh said: "This is a highly significant move for Trinity. The new facility gives Trinity the production capacity to meet our expected growth over the coming years and will also provide space for additional R&D and marketing staff. The project will enhance profitability through the removal of duplication of manufacturing overheads." He added that the Irish 10 per cent corporation tax rate was another factor in the decision to centralise operations in Dublin.
Mr O'Caoimh himself bought 770,000 shares under the option scheme while four other directors - Brendan O'Farrell, Jonathan O'Connell, Jim Walsh and Denis Burger - also bought large numbers of shares. Mr O'Caoimh said "This transaction reflects the confidence and belief that the board has in Trinity."
Earlier this month, Trinity reported strong results for 1997, with net profits of $1.2 million compared with losses of $792,000 in 1996. Turnover was up from $7,1 million to $16.8 million, reflecting organic growth and the contribution from two acquisitions - Clark Laboratories in the US and Centocor in Britain.
