LOS ANGELES, CA--(Marketwired - Apr 16, 2014) - Decision Diagnostics Corp. (OTCQB: DECN), the manufacturer of the popular GenStrip™, the unique Green Glucose Test Strip, specifically designed to work with the Johnson & Johnson's LifeScan Ultra family of glucose testing meters, today announced that that the Company's subsidiary, Pharma Tech Solutions, Inc. has announced the acquisition of Genstrip from Shasta Technologies LLC, including the intellectual property, trademarks, the FDA cleared 510(k) and various public and private product registrations. Pharma Tech has re-registered as Device Manufacturer of Genstrip with the U.S. FDA. Terms of the all cash acquisition have not yet been disclosed.
Keith Berman, CFO of Decision Diagnostics Corp. commented, "I am delighted to announce that our subsidiary Pharma Tech Solutions has acquired the intellectual property, trademarks, design documents, and control of the Genstrip, a Class II medical device. We have always highly valued the Genstrip as a product, and decided to act so that we could centralize manufacture, quality control and quality assurance under our corporate banner. We will continue to be Genstrip worldwide sales and service agents and we are currently working on enterprise marketing plans for our recently announced Private Label initiatives."
Genstrip, which will be rebranded Pharma Tech Genstrip, is a blood glucose test strip compatible with the Johnson+Johnson Lifescan Ultra family of glucose testing meters for diabetics, the most popular glucose testing meters in the United States and arguably the most popular family of testing meters in history. Employing a razor blade marketing philosophy for Genstrip, Pharma Tech is making inroads into the direct-to-patient Medicare and insurance benefit markets where reimbursement rates have changed the focus of the market away from retail "big box" models and toward direct to patient models that allow pharmacies, large and small, to sell a value priced test strip to diabetics without their need to change testing meters.
Mr. Berman concluded, "The market sea changes driven by the advent of the Medicare competitive bidding implementation, will permit us to fill a void created by the effective withdrawal of the Big 4 pharma companies from the Medicare and insurance channels for diabetic test strip fulfillment Through 2012 the 'Big 4' controlled over 83% of the total diabetic testing market. This acquisition of Genstrip allows the company to vertically integrate our sales and service capacity with the manufacturing and quality control components to exert absolute control of the product deliverance and to benefit from all the realized economies."
Forward Looking Statements:
This release contains forward-looking statements about our business or financial condition that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized.
There may be other risks and circumstances that we are unable to predict. When used in this release, words such as "believes," "expects," "forecasts," "intends," "projects," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain statements not accompanied by such expressions.
For further information about GenStrip, please visit the company's Web Sites: http://www.decisiondiagnostics.com/ or http://www.pharmatechdirect.com.
GenStrip™ test strips are not manufactured, distributed, endorsed, or approved by nor associated with LifeScan®, Inc. a Johnson & Johnson® Company, manufacturers and distributors of the OneTouch® Ultra® Family of Meters and OneTouch® Ultra® test strips.