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XL TechGroup, Inc. (XLT)


Wednesday 30 April, 2008

XL TechGroup, Inc.

Re Agreement

XL TechGroup, Inc.
30 April 2008

Press Release                                                      30 April 2008

                               XL TechGroup, Inc.
                       ('XL TechGroup' or 'the Company')

             DxTech signs Product Development & Licensing Agreement
                             with Nicholas Piramal

XL TechGroup (AIM: XLT), the creator of companies that solve identified, global
unmet market needs, is pleased to announce the signing of a long-term Product
Development and Licensing Agreement ('PDLA') between XL TechGroup's 83.5% owned
company DxTech LLC ('DxTech') and Nicholas Piramal India Limited ('NPIL'), one
of the largest pharmaceutical and healthcare companies in India.  This PDLA is
part of a long-term strategic alliance, which also includes a Distribution
Agreement and the establishment of a joint venture sales and marketing company
in India.

DxTech is developing the fully-integrated Vantix(TM) point-of-care ('POC')
diagnostics platform based on proprietary, electrochemical sensor technology
that has unparalleled sensitivity and dynamic range.  This combination will
allow DxTech to bring two points of differentiation to the POC market that
cannot be realized by any other POC technology currently available: the
capability to conduct simultaneous diagnostic immunoassays and general
chemistries on a single cartridge delivering a uniquely broad range of tests.

In addition to its core focus on the US$48 billion routine diagnostic market in
the US, DxTech's Vantix(TM) platform also has the added potential to transform
diagnostic testing in a range of other emerging markets, including  Asia, parts
of Europe and Central and Latin America.  In these markets, the Vantix(TM)
platform could reduce or eliminate the need for expensive, centralised
laboratory infrastructures and replace them with equally accurate testing that
has a more favourable cost profile, distributed across each POC.

The Vantix(TM) platform is designed to meet or exceed the performance levels
established by US reference laboratories, to provide a complete solution from
sample collection through claims processing, to be CLIA ('Clinical Laboratory
Improvement Amendments') waivable, to provide a strong gross margin in the US
market and, at the same time, to be commercially attractive in developing
countries.  In the US market, demand for the Vantix(TM) platform is expected to
result from providing the physician with reference laboratory quality results,
increased practice efficiency and significant additional income from
reimbursements that would otherwise be paid to reference laboratories.

The PDLA gives NPIL an exclusive license to DxTech's Vantix(TM) platform in 
India, Pakistan, Bangladesh, Sri Lanka, Nepal and Bhutan.  In return, DxTech has
received a multi-million dollar up-front fee and will receive three further
product development fees, based on specific milestones over the next 18-36
months, each for at least one million dollars.  DxTech will also receive
long-term royalties based on gross sales in India, as well as its share of
profits made by the joint venture.  Nicholas Piramal will allocate dedicated
employees to this relationship and will be investing additional funds for the
joint venture's marketing and distribution costs.

DxTech anticipates receiving clearance for the Vantix(TM) system from both the 
US FDA (510k) and the Indian regulatory authorities before the end of 2009.
Initial product launches are then expected, featuring Free T4 and TSH thyroid
assays where DxTech is already achieving results that match the gold standards
set by reference laboratories in the US.

With a population of over 1 billion, India is the fourth largest market for
in-vitro diagnostic testing in the world.  According to the G2 Report in August
2006, this market is growing at over 20% per annum, more than double the annual
growth rate of the world IVD market.  The majority of tests performed are
centred on key urban cities, primarily Mumbai (Bombay), Delhi, Chennai (Madras),
Bangalore and Kolkata (Calcutta) which have a combined total population of over
38 million.  It is estimated that 78 million people have thyroid disorders in
India, compared to 21 million in the US.

NPIL is one of India's largest pharmaceutical and healthcare companies, having
grown over the last 20 years through an aggressive strategy of successfully
managed acquisitions, mergers and alliances.  NPIL's core strengths include its
3,200 strong field force, successful brand building, state-of-the-art
manufacturing plants, and an ability to successfully manage partnerships in its
core businesses.  In the field of diagnostics, NPIL's customers are independent
laboratories, hospitals, doctors and patients, and they provide comprehensive
product and customer support through a network of engineers and scientists.

Dr. Swati Piramal, Director - Strategic Alliances & Communications, NPIL, said:
'This alliance is a significant step in our pursuit of launching innovative
diagnostic platforms, by which physicians can diagnose diseases and decide the
course of treatment for faster and better outcomes.  This will herald a paradigm
shift in the way diagnostic tests are currently conducted in our country.'

John Scott, CEO of XL TechGroup, said: 'DxTech's Vantix(TM) platform, which will
provide quick, accurate diagnostic results directly in the community, will allow
India to bypass and overtake the inefficient centralised reference laboratory
models of healthcare systems in other countries.  NPIL has a stated commitment
to making a difference to the quality of life in India by reducing the burden of
disease and we are very pleased that together we will be able to work towards
this important goal.'

                                    - Ends -

For further information:
XL TechGroup, Inc.
John Scott / Harold Gubnitsky                              Tel: +1 321 409 7403
[email protected]
Chris Munden, Director of Investor Relations          Tel: +44 (0) 20 7398 7720
[email protected]                                  

Nomura Code Securities
Richard Potts, Corporate Finance                      Tel: +44 (0) 20 7776 1200

XL TechGroup media enquiries:
Abchurch Communications
Heather Salmond                                       Tel: +44 (0) 20 7398 7704
[email protected]
Gareth Mead                                           Tel: +44 (0) 20 7398 7710
[email protected]                 

Piramal Group
Vijay Sathye, President - Investor Relations          Tel: +91 (0) 22 3046 6412
[email protected]
Sagar Gokani, Manager - Investor Relations            Tel: +91 (0) 22 3046 6474
[email protected]


About XL TechGroup, Inc.

XL TechGroup is in the business of significant value creation.  Working with
major international corporate and technology partners such as Procter & Gamble
and leading universities, XL TechGroup first identifies global unmet market
needs and then targets and exploits these by the systematic creation of
successful, disruptive technology businesses.  These new companies are built
from scratch, and are then managed, developed and funded by XL TechGroup through
to the point of a trade sale or a stock market listing.

XL TechGroup's unique and proven methodology selects the best opportunities in
order to create one-to-two new companies annually, where each company is
expected to achieve a realisable valuation of at least US$400 million within
four years from its creation.  It is XL TechGroup's aim to deliver significant
shareholder distributions at the final exit from each company or from other
liquidity events.

XL TechGroup's companies to date are:

•         PetroAlgae LLC (
•         TyraTech Inc. (AIM: TYR,
•         DxTech LLC (
•         QuoNova LLC (
•         AgCert International plc (

XL TechGroup has also established GenXL LLC ( as a joint venture to
capture the value of those prospects that do not fully meet XL TechGroup's
company selection criteria but still demonstrate considerable potential worth.
Over and above XL TechGroup's core business model, GenXL reviews a significant
flow of opportunities from both its parents in order to generate new companies,
standalone product lines and technology licensing opportunities or an
appropriate mix of these.

For further information, see

About DxTech LLC

DxTech was established in July 2005 by XL TechGroup, Inc. to address the
significant unmet global need for an easy-to-use, cost-effective point-of-care
diagnostics system that offers a broad test menu and delivers reference
laboratory quality results in real time.  Based around its unique P3(TM)
(Potentiometric PolyPyrrole) impedance-based electrochemical sensors, which
offer an unparalleled combination of high sensitivity and wide dynamic range,
DxTech's Vantix(TM) platform consists of:

•    the P3(TM) electrochemical sensor, embedded in a disposable microfluidic
     cartridge containing all materials needed to run diagnostic panels;
•    a low-cost reader with proprietary firmware that analyzes the cartridge and 
     provides diagnostic results, and;
•    a central server computer system, managed by DxTech, which monitors system 
     quality control, as well as collecting and storing data from remote 

The DxTech Vantix(TM) system has the potential to revolutionize general patient
care and chronic disease-state management, while boosting physician office
revenue significantly

For further information, see (

About the Piramal Group

Spanning a broad spectrum of industries and formats, the Piramal Group is
committed to achieving excellence and leadership by adhering to ethically sound,
innovative and value-driven practices in its diverse, yet focused, business
ventures and initiatives.  The Group's turnover exceeded US$750 million in
FY2007.  The names of specific Group Companies are to be changed subject to
shareholders' and Central Government's approval.

About Nicholas Piramal India Limited

Nicholas Piramal India Limited ('NPIL', name proposed to be changed to Piramal
Healthcare Limited) is one of India's largest pharmaceutical companies, with a
growth track record of above 30% CAGR since 1988.  NPIL had consolidated
revenues of US$602 million in 2006-07.  The Company is currently ranked 5th in
the Indian market with a diverse product portfolio spanning nine therapeutic
areas.  The Company is also one of the largest custom manufacturing companies
with a global footprint of assets across North America, Europe and Asia.  NPIL
is listed in India on the National Stock Exchange (Ticker: NICOLASPIR) and the
Bombay Stock Exchange (Ticker: 500302).  The name change from Nicholas Piramal
India Limited to Piramal Healthcare Limited is subject to approval by the
Company's shareholders and Central Government.

For further information, see

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                               

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