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<i>LifeScan v. Shasta Tech </i>

BY J. Gregory Chrisman
December 31, 2013

The American Diabetes Association reports that 25.8 million people in the United States have diabetes. Every day, millions of those individuals monitor their blood sugar with blood glucose meters and test strips. The test strip is discarded after each use. Depending on an individual's circumstances, she may need to test her blood sugar several times a day. For example, an individual with Type 1 diabetes may need to check her blood sugar three or more times per day, while an individual with Type 2 diabetes may need to test one or more times per day. The number of test strips consumed each day is staggering and studies indicate that the global market for diabetes diagnostic tools is projected to reach $26 billion by 2015.

Background

LifeScan is a wholly-owned Johnson & Johnson subsidiary that manufactures and sells blood glucose monitoring products, including OneTouch' Ultra' meters and test strips. According to the Wall Street Journal's MarketWatch, “Lifescan is the market share leader in the at-home glucose testing market.” This statement is corroborated by a report from the Department of Health & Human Services that found that the OneTouch' Ultra' testing strips lead the diabetic testing strip mail order market associated with Medicare, accounting for 14.9% of the claims. That figure is currently 3.8% higher than the next closest testing strip.

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