Company Also Announces That at the End of 2Q 2019 All Legal Issues Brought Against Shasta Technologies Were Settled, DECN Will Realize Significant Gain in 2Q 2019 Period
LOS ANGELES, CA / ACCESSWIRE / August 1, 2019 / Decision Diagnostics Corp. (OTC PINK:DECN) is a 17-year old, diabetes-focused bio-technology development firm, manufacturer, quality plan administrator, FDA registered medical device customer support organization, and exclusive worldwide sales and regulatory process agent for the GenUltimate! (“Sunshine”) diabetes test strip, the internationally launched GenSure! (“Feather”) diabetes test strip, and its GenChoice! (“Ladybug”) test strip now in FDA 510(k) prosecution. The company also markets the PetSure! test strip for the diabetic testing of dogs and cats, a diagnostic specifically designed to run on the market leading Zoetis Alpha Trak meter system and the GenUltimate! 4Pets Test strip and Avantage! meter a proprietary testing product for dogs, cats and horses, and the panacea GenUltimate! TBG (“Dragonfly”) diabetes testing system, now awaiting a clinical trial slot in Korea.
After a 90-day process where a number of propositions for the company’s GenUltimate TBG technology emerged, some solicited, some not, DECN has chosen to complete an arrangement whereby it will license its GenUltimate TBG technology to a single party on an exclusive sales basis. The license agreement as outlined will not include a transfer of the DECN Intellectual Property. The structure of the agreement between the partners will include a significant up-front payment for the exclusivity rights alone as well as healthy license fees that over a 5-year period will realize the full potential of the technology and product.
Keith Berman, CEO of DECN, commented, “The Company received a total of six different transaction structures inclusive of outright sale of the technology, arrangements that included non-compete covenants, two earn-out propositions, and eventually two licensing agreements. We ultimately chose the licensing agreement that left the company with the freedom to complete development and then sell our in-development GenChoice TBG and upcoming CGM TBG products.”
DECN will provide a detailed discussion of the company’s strategic decisions in the upcoming 2Q 2019 Quarterly Report, due in approximately two weeks. The company will also update again on the litigation with Johnson & Johnson.
Mr. Berman continued, “The licensing agreement for the GenUltimate TBG technology, wich includes the highly precise test strip, and the meter, which we call the Precise meter, is a major strategic milestone in the company’s history. Not only will we reap the rewards of an expected $100+ million agreement, but in doing so we will have changed the focus and business direction of the company from being a developer and sales organization specializing in the alternative diagnostics products market, what some call the “me-too” space, to a specifications provider and manufacturer of cutting edge diagnostics of our own invention. GenUltimate TBG is just the first of our enhanced products and technologies.”
DECN further reports that their new partner is a world renowned organization with multiple products in the diabetes space and with multiple companies under its banner. The company will make all applicable disclosures at an appropriate time — but soon.
Mr. Berman concluded, “In addition to the big events in the company’s near term future, we have also taken care of other important business. In late June 2019 we accepted settlement with Shasta Technologies LLC that had involved litigation in three states; California, Minnesota and Pennsylvania. As a result of this global settlement and perpetual releases, DECN will now be able to account for our 2014 acquisition of the Shasta GenStrip, that we subsequently rebranded as GenUltimate. This settlement and perpetual release will give rise to a gain in 2Q 2019 and also an addition to the carrying value of our intellectual property portfolio. We await the accounting treatment, which is complicated, but because it also involves approximately $660,000 of post 2014 development and intellectual property and hard asset acquisitions associated with the development of our GenUltimate. The entire series of entries should result in gains in excess of $2.5 million. Not surprisingly these gains were not lost on our prospective licensing partner.”
ABOUT DECISION DIAGNOSTICS CORP
Decision Diagnostics Corp. is the leading manufacturer and worldwide distributor of diabetic test strips engineered to operate on legacy glucose meters. DECN’s products are designed to operate efficiently and less expensively on certain glucose meters already in use by almost 7.5 million diabetics worldwide. With new inspired technology diabetic test strips already in the final stages of development, DECN products compete on a worldwide scale with legacy manufacturers currently selling to 71+ percent of a $15+ billion at-home testing market.
This release contains the company’s forward-looking statements which are based on management’s current expectations and assumptions as of July 31, 2019, regarding the company’s business and performance, its prospects, current factors, the economy, and other future conditions and forecasts of future events, circumstances, and results.
SOURCE: Decision Diagnostics Corp.
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