I am not a basher just a shareholder flipper. What kind of business model is this to go after a pharmaceutical name brand diagnostic product and develop a imitation strip to work on their device. Aren't we Americans po'd at the Chinese for doing the very same exact thing in a similar light? After all, the company has the audacity to use the pretext of fighting for the poor, as if J&J is the only brand on the market the poor have to deal with, and then blackmailing J&J into settling and buying them out??? Shasta went and violated a free market competition trademark by developiing a strip that works on Lifescan, and perhaps they may have won the patent argument, but ethically, it begs to question: is this right, or is this fair? No one is forcing anyone to buy Lifescan, there are numerous different products out there. We are in a free market society here.
Okay Jack, If you buy a Remington shotgun and Browning sells cheaper but just as effective ammo, are you going to buy Remington ammo at a higher price just to satisfy your moral obligation? The shotgun is the actual dispenser of the ammo, but it seems you are able to choose what ammo you wish to use. Can Remington actually control the ammo option by patent for the gun? I don't think so.
Sentiment: Strong Buy
jackstanislov - Ethical question? If Nestle Comes with Nespresso and it's capsules and Forces the customer to pay Price X and some other small companies come out as well with pods which work on Nestles Nespresso-machine, however have a different package and are almost 40 % lower in Price but of same Quality and Nestle takes them to court and is losing across the board as in the instance of a small British manufacturer as the UK court ruled that ist pods do not infringe patents on the world's larges Food companie's Nespresse machines - I would say this is a Blessing for consumers. If you understand under ethic keeping a Monopol then well you are not speaking for a free market. What DECN did when they went after J&J was a big risk, but that is the Little man - he has to stand up for himself. I recommend you read the papers from the FDA when they granted DECN the approval and you read the papers from the USTPO then you will learn that DECN's Genstrip is rather different than the one from J&J.
Finally, your ending, that nobody is forcing anyone to buy Lifescan is true, but wrong as such, because competition with names Roche, Abott, Bayer and so on, have a similar pricing Level. With Genstrip we are talking about a product between 30 % and 50 % lower than the rest and of same Quality if not better. So, this is free market Society, pricing and giving the consumer the choice.
Sentiment: Strong Buy
Sasha, great post. KB told me that the case involving replacement single shot espresso containers was heard just after DECN's case with J&J. KB said they argued exactly the same case. In the espresso case the argument was that as soon as Nestle sold the machine they lost control of the machine and it was up to the consumer to decide who's coffee pack they would use. That was the same argument used in Germany, France, GB, Netherlands and Denmark.
And it is worth mentioning that J&J just had a big price increase effective October 1, either 11 or 12%, and not posted on this Board was that Abbott had a 9% increase. Both companies are giving up on 35% of the market, and answering a question posed by the company's detractors for years on this board. What if the oligopoly dropped their prices to kill DECN? Have they?
Sash all points well taken, and am well aware of them. However, still think Shasta, although in an an ingenious way, has just violated j&j and did what the Chinese did to US manufacturer s. Shasta should develop their own meter, if they claim they have superior alternative to JNJ. The way they entered the market seems a bit cheesy and not the most ethical to me. Hell ya, if they could destroy the pricing in a legal way, and make it affordable to all for a quality product, all the power to them. They would probably go after all the brand names next. I am just in doubt the a judge would allow it for moral reasons. That's all I am posing here. I like the discourse to feel comfortable being long and fliipping it for the long side, by assesing the risk of a favorable judgment. Thanks guys.
Who is asking J&J to buy us out?? I think that the USPTO is already leaning towards invalidating J&J's patent.
Here you have a product that works better than the brand name product and costs customers a lot less. Customers always have a choice, and if they choose to buy Genstrip what is the problem here??
Why are you here Jack?? You are not making much sense!!
Why we want J&J to buy us out when we are going to be selling millions of dollars worth of Genstrip through Wal-Mart, Medicare, and other retailers?? I am sure that J&J is quite comfortable with us doing that.
So basically with your argument, you are saying that if I bought a Mercedes-Benz then I should only buy Mercedez-Benz made tires, and I am not free to choose a cheaper alternative, such as say a Firestone tire?? I think that's why the patent court lifted the preliminary injunction that the idiot CA judge ruled. That's called anti- trust!!! You know when you force a customer to only buy your product when there may be better products in the market place, at a better price. Geez!! IMHO.