Instead of giving me thumbs down, why don't you take a few minutes and read the facts. JNJ makes around $40 million dollar per day (give or take)....everyday in Net Income. For basically a week or so of 'work', JNJ could acquire a company that makes a superior diabetic test strip that costs the consumer less. Imagine the public backlash and government pressure that JNJ would face if they were found guilty in the court of public opinion of overcharging and price gouging senior citizens and diabetics throughout the world....
Now look at it from the capitalism point of view....they could spend a week or so worth of 'work' and buy DECN. Have DECN's Genstrip be the private label and have the LifeScan be the premium brand. This is standard CPG stuff here....Then, they could turn the DECN team loose on cracking all the patents of Bayer and Roche and every other supplier in the market place.....or they could make a deal with all their major customers and retailers that they have to take both the Genstrip and Lifescan strip and eliminate another competitor from the shelf. Or they could buy DECN and do nothing with it....and continue to make a premium on LifeScan strips for a short period of time (profits would trump the small acquisition costs)
The possibilities are nearly endless....yet JNJ continues to step over a dollar to fight for a dime. Are your calculators turned off or broken? This is easy math here guys. A company with a market cap of $10-$20 million is costing you tens of millions in legal fees and a potential loss of hundreds of millions in profits. It is called managing risk.
Look at the bigger picture and build some shareholder value! That's what Management gets paid for.
Full Disclosure: I am a shareholder of JNJ and DECN because the marriage makes sense.
Another court date last Friday and again....JNJ playing from behind. Sooner or later JNJ will have to acquire and/or pay a hefty fine to DECN. This is good news for all shareholders. JNJ needs to do the right thing for their company, customers and diabetics around the world and provide diabetics the option for a LifeScan strip and/or a Genstrip to use with a LifeScan device.
David Defeats Goliath (Again), DECN and Pharma Tech Solutions Awarded Victory Over Johnson & Johnson Lifescan in USPTO Final Ruling
Major Claims in J&J Lifescan Patent 7,250,105 Ruled "Unpatentable" by Three Judge USPTO Panel
Marketwired Decision Diagnostics Corp.
August 11, 2014 9:20 AM
LOS ANGELES, CA--(Marketwired - Aug 11, 2014) - Decision Diagnostics Corp. (PINKSHEETS: DECN), the manufacturer of an exclusive worldwide sales, service and regulatory processes agent for its popular GenStrip™ glucose test strip, specifically designed to work with Johnson & Johnson's LifeScan Ultra family of glucose testing meters, announced today that on August 6, 2014, the United States Patent and Trademark Office, Patent Trial and Appeal Board has sustained, in a final ruling, the company's challenge to Johnson & Johnson Lifescan's Patent 7,250,105, specifically "claims 1-3 ... for obviousness, ... by a preponderance of the evidence." These three claims are used by J&J Lifescan as the foundation of their patent infringement lawsuit against DECN and Pharma Tech. The USPTO Judge Panel has ruled these claims as "unpatentable."
The August 6, 2014 ruling marks the third ruling by a higher court on this same J&J Lifescan Patent. Previously in August 2013, in a preliminary ruling, the same USPTO three judge panel determined "that Pharmatech has demonstrated that there is a reasonable likelihood of its proving the unpatentability of claims 1-3 of the '105 patent by a preponderance of the evidence.' In November 2013 the Federal Circuit Court, reversed an earlier ruling made in late March 2013 by a District Court judge in Northern California, and ruled that the J&J Lifescan patent rights (under patent 7,250,105) were subject to the doctrine of patent exhaustion.
Keith Berman, Principal Executive Officer of Decision Diagnostics, commented, "The USPTO Patent Trial and Appeal Board's ruling along with the November 2013 Circuit Court's ruling, has put to rest significant parts of J&J Lifes