Decision Diagnostics Corp (OTCMKTS:DECN) is a company that we have looked at on a couple of occasions in the past under various circumstances here at Insider Financial and it’s one that, across the period, we have suggested could be set for longer-term upside revaluation if the various situations in question (read our previous coverage here to find out what we are talking about) mature to a reasonably smooth conclusion.
Over the last 30 days, we have seen a flurry of operational updates from the company, each of which has served to offer up different degrees of insight into where things stand operationally and, in line with these operational insights, we have seen the company appreciate considerably.
Right now, Decision Diagnostics goes for just shy of $0.15 a share. That’s 86% over the last six months. Over the last 30 days alone, it’s representative of a 156% appreciation.
Against the backdrop of this value advance, here is a look at what’s new from the company and what we are looking for next as supportive of a continuation of this upside momentum.
For those new to Decision Diagnostics, the company is a biotechnology stock that’s working to forge a path in the diabetes space.
Specifically, the company has designed a range of test strips that can be used with existing blood glucose monitoring technology (i.e. the handheld devices that diabetes sufferers use to measure that blood glucose on a daily basis) but that cost far less than do the currently available strips.
The idea is that, by reducing the cost, the company can pick up a large portion of this circa $6 billion market and at the same time can improve access to this sort of testing strip technology in developing nations, where monitoring equipment isn’t readily available due to cost prohibition.
At a glance, it’s development portfolio can look a bit confusing. However, to simplify, it comprises four products, called GenUltimate, GenSure, GenChoice and GenPrecis respectively.
Each has its own features and benefits but the overarching aim is to reduce costs while improving accuracy in both diabetes and prediabetes glucose level detection as well as making it a more accessible system for children.
Each of these technologies is in the late stage (with one already commercialized in various regions) and all should move from clinic to shelves at some point over the next 12 months. From an operational perspective, therefore, each represents its own potentially major catalyst for the company.
However, that’s not really what we are interested in right now.
Instead, we are looking at an announcement made on September 7 that detailed the fact that Decision Diagnostics has received a revised offer from a so-called proposed merger and acquisition partner.
To outline the situation, the company received a buyout offer (all cash) but declined it initially. The entity that made the offer (as yet unnamed) has now come back and increased it by 21%, which, as per management’s communication surrounding the matter, represents a substantial premium to the share price on announcement date (as mentioned, September 7), which came in at around seven cents a share.
The company stated that it’s not going to reveal any more information about the offer, or even debate it, before the launch of one of the above-mentioned product – the GenSure – is underway.
This is expected to happen at some point later this year, so that’s what we are looking out for as indicative of future strength. If the offer comes in above current share price, this stock is going to run. Between now and then, we expect markets to continue to load up on the company in anticipation of said outcome.
We will be updating our subscribers as soon as we know more. For the latest updates on DECN, sign up below!
Image courtesy of Practical Cures via Flickr
Disclosure: We have no position in DECN and have not been compensated for this article.