Decision Diagnostics Corp (OTCMKTS:DECN) On A Bull Run

Shares of Decision Diagnostics Corp (OTCMKTS:DECN) have been on a tremendous bull run since the first of the year. It all started when the US Court of Appeals for the Federal Circuit affirmed the Final Ruling of the USPTO court, bringing an end to a nearly three year challenge brought by the company's Pharma Tech Solutions Inc. subsidiary against Lifescan Scotland Ltd. The company brought its action in 2013, disputing the patentability of claims 1-3 in U.S. Patent No. 7,250,105. The company won a Final Ruling in August 2014 "by a preponderance of the evidence" in a USPTO court process. The Federal Circuit's unanimous rejection of Lifescan's appellate motions through a Rule 36 summary affirmation unambiguously denies their petition and mitigates further legal challenge.DECN is the the manufacturer, quality plan administrator and the exclusive worldwide sales, service and regulatory processes agent for GenStrip 50 and the GenUltimate glucose test strips, both designed to work with the market leading Johnson & Johnson's ("J&J") LifeScan OneTouch Ultra family of glucose testing meters, and the in-development GenSure and GenChoice glucose test strips targeted to the U.S. and/or developing world markets.LifeScan One Touch Ultra is one of the J&J's most important and profitable products. A big part of sales consists of the test strips, a single-use diagnostic that are used in the UltraScan meters at two to eight times a day. They retail for about $1.25 per strip. Over 3 million diabetics use this product daily. The strips are necessary for diabetics to monitor their glucose levels. Although J&J has filed a patent infringement suit against Decision Diagnostics and its Pharmatech subsidiary, the FDA hasn’t issued a restraining order to stop the company from selling its Genstrip 50 strips.The business of glucose monitoring is growing at 25% annually and experts estimate that by 2017, the market will exceed $30 billion worldwide. That’s partly because some 13 million diabetics and pre-diabetics worldwide do some kind of self-testing to determine their glucose levels, and about 6.2 million people globally use or have used J&J’s LifeScan Ultra meters, which have been the most popular among diabetics since 2004, according to analysts. And of those who tested their own glucose at home on a daily basis, about three to four million used J&J’s Ultra meters.Last month, DECN filed a lawsuit in the United States District Court, District of Nevada, in Las Vegas, NV against Johnson & Johnson and its divisions Lifescan, Inc. and Lifescan Scotland Ltd. stipulating multiple incidences of infringement against two separate patents owned and/or practiced by the company's subsidiaries. The company is seeking compensation and damages in the amount of $400-$700 million. DECN's Keith Berman said:

"J&J/Lifescan has prosecuted its illicit and extra-legal campaign against our products and company for 4+ years. We have weathered every storm and won each of the critical legal confrontations. We will continue to battle and win on those fronts. This filing against J&J/Lifescan will no doubt be cause for personal vindication amongst our shareholders. Although, our actions do possess a semblance of retributive justice, it is greatly disappointing that an entity of their magnitude would be reduced to appropriating the technological breakthroughs of others to achieve their own financial objectives."

Currently trading with a market cap of $32 million, DECN is an exciting story on the OTC markets with growing revenues. Revenues have grown from just $113k in the quarter ended Sept 30 to $223k in the quarter ended Dec 31. The company has also caught a lot of investor's attention after a recent Forbes article. The article said "So J&J is expected to act before long on resolving the patent infringement issue with Pharmtech. There is speculation that J&J may make an offer to license the Pharmatech product — or simply make a bid to buy Decision Diagnostics." We will be updating Insider Financial as soon as we know more. For continuing coverage on DECN, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in DECN and have not been compensated for this article.