 |
| Decision Diagnostics is challenging Johnson & Johnson with Genstrip.--Courtesy of Decision Diagnostics |
Decision Diagnostics ($DECN) said it has raised $12.7 million to help fund two countersuits against industry giant Johnson & Johnson ($JNJ) in an ongoing patent fight over its upstart glucose test strips.
The Los Angeles, CA, company said it sealed a terms agreement with "a major east coast based litigation prosecution fund" for the financing.
At issue: Decision's Shasta GenStrip, a disposable glucose test strip that is designed to work with J&J's LifeScan Ultra glucose testing meters. The product launched in 2013, as an alternative to J&J's own strips designed for the meters. J&J sued Decision, alleging violation of its patents. Decision countersued, alleging that J&J committed antitrust violations and used false advertising to assert that its own glucose testing strips, which dominate the market, are better than the competition.
The U.S. Patent and Trademark office ruled that Decision's challenge to J&J's main patent may have merit. Now, Decision noted, the Court of Appeals for the Federal Circuit decided in its favor, giving Decision room to pursue collection of damages from industry giant J&J.
In December, Decision nailed down a $12.5 million line of credit from Platinum Credit Management Resources' Alpha Credit Resources to help boost sales efforts for its glucose test strip. Decision said that sales push continues, including a television commercial that will be running on cable outlets broadcasting the 2014 Winter Olympics.
Keith Berman, Decision's principal executive officer and Genstrip program director, said in a statement that his company now "has all of the additional financing required, and then some, to contest an expensive, but potentially benefit rich, two front legal battle."
- read the release