Trinity Biotech is to write off $968,000 (€825,300) following the closure of a Bray, Co Wicklow-based biotechnology start-up in which it held a 43 per cent stake.
The board of HiberGen is putting the company into voluntary liquidation after an unsuccessful fund-raising drive. At its peak, HiberGen employed 20 people but has been operating with a skeleton staff of three for some months.
HiberGen was established in 1999 to research the human genome and investigate the link between genes and diseases.
Chief executive Mr Maurice Treacy expressed surprise that the latest funding drive failed to attract public sector investment in light of the Government's stated aim of supporting the life sciences industry.
HiberGen has generated revenues of €5 million and raised €2 million during its four-year existence. As it is privately owned, Mr Treacy declined to say how much the company had lost or provide further financial details.
Trinity Biotech, which invested $1.37 million in HiberGen in October 2000, said it would not sink further money into the venture, citing an unsatisfactory "rate of progress" and a desire to focus on core interests.
Losses consolidated in the Trinity income statement were $157,000 for the first three quarters in 2003 and $317,000 in 2002.
The carrying value in Trinity's balance sheet as of September 30th was $968,000 - this will be written off as an exceptional charge for the current quarter.
Trinity Biotech develops manufacturers and markets diagnosed products across 80 countries. It is listed on the New York Nasdaq exchange. Revenues rose 22 per cent in the third quarter of 2003 to $16.9 million from $13.8 million in the same period last year. Profits after tax for the quarter climbed 50 per cent to $5.3 million, raising earnings per share to 12.4 cents from 8.6 cents.
