Decision Diagnostics Corp (DECN)

[Leirum]

It is all about the size of the Strip market.

Wondering what DECN did wrong that they got sued by J&J, if DECN only wanted to be in the Strip market, actually a market that for some here has no value and future.

Why then on earth then , a Multi-Billion Dollar company is taking all the pain and spending millions of dollars, fighting this little company in court, if there is nothing to gain from?

Could it be, that J&J has more experts on board and a better knowledge of the market size of the Strip market, that lead to this decision? Based on the rating J&J has, I would say, of course.

But maybe J&J and their strategic planers are all dreamers and should have consulted the “self- styled all- knowing experts” before going after DECN. So they would have saved millions of Dollars in litigation and would have avoided to lose 3 times in court and now even risking that 2 former smaller verdicts will be corrected as well, due to their presentation of a “fake” witness, making the score then 5 to 1 in favour of DECN.

But I guess, when J&J decided to go after DECN they knew what is actually common knowledge in the market: The big business in the years ahead is still the Strip business, estimated to be valued around 10.9 billion in 2017. I would then say, DECN is operating in a market field where money can be made and I guess, this is exactly what J&J thinks as well.


http://www.marketwired.com/press-release/market-research-forecasts-blood-glucose-monitoring-devices-market-12-billion-2017-1635770.htm
The global blood glucose monitoring devices market is expected to reach a value of $12.2 billion in 2017, with a predicted CAGR of 4.5% between 2010 and 2017. The blood glucose test strips market segment is expected to be valued at $10.9 billion in 2017 and is forecast to exhibit a CAGR of 4.6% between 2010 and 2017.


http://www.reuters.com/article/2012/01/11/idUS180170+11-Jan-2012+BW20120111
http://www.prnewswire.co.uk/news-releases/blood-glucose-devices-market-monitoring-smbg-forecasts-in-new-research-reports-280899972.html

All in all I would say, if a small company tries to grab market share in a market it is importance to see the potential size of this market in Dollars. As we know, Lifescan owned by Johnson and Johnson controls 26.5 % of this market or translated back to 2017 roughly $’s 2.9 billion. So I would say, there is enough money on the table for DECN to get some piece from it and J&J knows that and acted based on the old slogan: Resist the beginning and consider the end.
Conclusions: DECN has its legs in the right market.