Company in the Sights of a Big Box Looking to Replace a House Brand(s) and an International Healthcare Entity Looking for a Worldwide Three Party Agreement
LOS ANGELES, CA / ACCESSWIRE / August 8, 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 its 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 that has been licensed to Fetch 4Pets, and the panacea GenUltimate! TBG ("Dragonfly") diabetes testing system, now awaiting a clinical trial slot in Korea.
After disclosing the choice of a licensing partner on August 1, 2019, DECN received:
On August 2, 2019, a new proposition from one of the original bidders in the process, where the bidder changed their proposition from an acquisition offer for GenUltimate TGB technology and the resulting products, to a non-exclusive licensing agreement of the same technology. This latest proposition was unsolicited. The proposition emerged from an entity in a channel of the industry known as “Big Box.” This revised proposition does not conflict with any of the known terms from the prospective partner disclosed first on August 1, 2019. If appropriate, terms will be disclosed in the upcoming Quarterly Report for 2Q 2019.
And on August 5, 2019 the company was contacted by a second original bidder, this time an entity originally solicited by the company. This proposition was delivered during a long conference call. If a deal is struck with this proponent it will be more complicated and more wide-ranging. One point discussed with this proponent was a three-way multiple product and technology licensing arrangement that will include the company’s chosen licensing partner. The company awaits receipt of the hard copy proposition.
Keith Berman, CEO of DECN, commented, “News releases are announcement vehicles and not the best avenues to discuss business opportunity. However, given the enormity of our upcoming license deal for both the GenUltimate! and GenUltimate! TBG test strip and the GenUltimate! Precise meter, when cleared by the FDA, and anything else that may emerge from the latest propositions, we felt it best to discuss salient details, especially for those interested parties that do not dig down into our Quarterly Reports. ”
DECN further reports that all prospective partners are renowned organizations, all with products and properties in multiple channels, and all players, past and present, in the diabetes space. Further, the company contemplates the GenUltimate! TBG licensing agreements to be made up of three components:
- A cash payment for provisions of stand-still during the negotiation of a Definitive Agreement
- A larger cash payment for exclusive rights and term
- On-going and handsome per-box or per unit fees for a four or five year term
Mr. Berman concluded, “The completion of the licensing agreement for the GenUltimate TBG technology, which includes the highly precise test strip, and the meter, which we call the Precise meter, is a panacea event in the company’s history. Not only will we reap the rewards of an expected $100+ million 5-year agreement, but it appears that there is substantial interest from a “big box” looking for a certain house brand replacement (or upgrade), and even more recently, interest from a certain international party eyeing a multi-party relationship. There will be much to discuss on August 14, when we post our 2Q 2019 Quarterly Report. ”
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.
Forward-Looking Statements:
This release contains the company's forward-looking statements which are based on management's current expectations and assumptions as of August 7, 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.
CONTACT INFORMATION:
Decision Diagnostics Corp.
Keith Berman (805) 446-2973
[email protected]
www.genultimate.com
www.genultimatetbg.com
www.petsureteststrips.com
www.pharmatechdirect.com
SOURCE: Decision Diagnostics Corp.