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RE: [IP] Freestyle Meter (Therasense) buy out


See my comments below:

>TheraSense is a public company. If J&J were to even purchase a small
>interest, there would be public disclosure and SEC filing required
>AND you can bet that TheraSense's stock would make some pretty wild

Point being what?  Such an SEC filing does not exist until the the acquirer
decides to take action, the "pretty wild moves" you describe also wouldn't
happen until after the fact.  You speak as if since the the SEC filings
haven't happened, and stock hasn't "moved", that Therasense is not looking for
a suitor and that it is not in financial difficulty.

> As to their financial condition, I'd suggest you read their
>public filings with the SEC (required by law).

You don't even have to go that far for the highlights.  Financial data can be
derived from any # of major dot.coms.  3Q 2002 results show a net loss of $9.3
million for the quarter and $12.9 million for 1st 9 months of the year.  Last
year, during the the 3rdQ, the net loss was $12.9 million, and $66.6 for the
1st nine months.

>I think you will find
>they have plenty of cash and are pretty much making their forcasts as
>released to the press in prior months / years.

Not even close there Michael.  The 1st quote from their CEO, in the quarterly
release went as follows: ""We are disappointed that our third quarter revenues
and gross margin were flat in comparison to the second quarter, without
contribution from the recognition of previously deferred revenue."

 Cash, is in short supply.  For the quarter ending in September, cash &
equivalents were $38 million, vs the seemingly gargantuan sum of $143 million
at the end of December 2001.  Unless they are are able to stem the tide and
bring in a profit or conduct a secondary stock offering to raise funds, they
will at the very least, lose their recent corporate independance, and worst,
investors will lose their shirts. Good for them is the fact that they have at
the least reduced their losses, but who knows what writedowns and reduction
could show up in the 4th quarter; inventories are up due to a transition a
manufacturing shift to China, and "Available-for-sale investments" are listed
@ $33MM to make way for some sort of divestment.

>I'm not an analyst,
>but I suspect that given their public statements about growth and
>scientific advancements in their diabetes technology, you should
>expect some pretty good things from this company.

"Public statements about growth"?  Theresense has not released any press
releases that mention growth at all, so please let us know where these
statements are.  Their Technology, if good, could serve as a chip at a
bargaining table.  If not, it will only accelerate their demise due to
accelerated writedowns.  Future use technologies, wont help them overcome
immediate fianacial problems.

-Financial Analyst

> If any of you have
>concrete information beyond "rumors" I'd be interested in hearing

The information is in the financials and in the CEO's disappointment at his
inability to raise the topline and gross margin.  Critical numnbers to a
company who is 5th out of the industry big 5 in marketshare and who is still
bleeding cash, and whose stock is 1/5 what it was when it became publicly
owned  little more than a year ago.  In fact when the 3rd quarter results were
released in October 2002, the stock dropped like a rock from 12 to less than

email @ redacted

>> My niece has a question concerning the Freestyle meter. On a
>> Diabetes list where she is a  participant there is a rumor that
>> Johnson and Johnson have bought out Therasense. They plan to revamp
>> the Freestyle meter and discontinue manufacturing the strips for the
>> current one that is on the market. I have not heard this before and
> >wondered if anyone on this list has information confirming or
> >refuting this information. Seems a rather silly marketing strategy
> >to possibly eliminate those many current Freestyle owners who are
> >buying lots of expensive strips every month. In the process the
> >current owners may not buy the new and improved Freestyle and go to
> >an alternate brand. Silly but true or just a rumor? Pam, mom to Sara
> >Hi Sara,
> >TheraSense has been looking for a partnership/alliance because they
> >have had tremendous financial problems. If you can offer additional
> >information, I can do some further checking to substantiate this. It
>> sounds like it is plausible, but I need to check further.
>> Denise
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