XL TechGroup creates third company
11 July 2005
XL TechGroup, Inc. (AIM: XLT), the systematic architect and builder of an ongoing stream of high value new companies, is pleased to announce the creation of DxTech LLC, the third company to reach the development stage of XL TechGroup's proven methodology for value creation. DxTech follows AgCert International, which was created by XL TechGroup in May 2002 and listed on the London Stock Exchange in June 2005, and TyraTech which was created in June 2004 and which is expected to be generating revenues by the end of 2005.
DxTech is developing a unique micro-fluidic platform to initiate a transition from centralised to distributed diagnostics. The technology addresses the need in the medical diagnostics market for real-time results at point-of-care for a comprehensive array of tests typically required by clinicians. The diagnostic platform is fully-automated, requiring only a drop of blood applied directly to a credit card-sized disposable cartridge to provide a diagnosis within minutes that equals or exceeds the 'gold standard' achievable by a reference laboratory. Test and quality control data is transmitted via a small electronic reader to a centralised management system where results are processed and stored.
The technology leads directly to more targeted medicine and therapies, as it provides immediate, accurate diagnosis of a disease, thereby allowing the most appropriate treatment to be applied at an earlier stage. It also has the ability to transform the current clinical trial process, thereby significantly shortening the time and reducing the cost of developing new drugs.
In 2004, US$40 billion of clinical laboratory tests were performed in the US alone, and DxTech's technology addresses the US$18 billion clinical blood test segment of this market. By providing doctors with the ability to perform a wide range of diagnostic tests in their offices with one simple instrument, patient care will be significantly improved through immediate diagnosis, rather than waiting several days for results from a central laboratory. Insurance companies will benefit from reduced costs due to the elimination of both sample shipping and temporary prescriptions written in advance of receiving diagnostic results, while doctors in the USA will gain through direct reimbursement for the tests rather than this revenue going to the reference laboratories.
Discussions with a number of major pharmaceutical companies have highlighted the ability of the DxTech diagnostic platform to fulfil their need for a major overhaul of the clinical trial process. The technology has been designed to enable pharmaceutical companies to recruit patients for trials on a worldwide basis, including from lower cost developing countries, while continuing to meet stringent international regulatory requirements. It will also enable patients to transmit data from their own homes, resulting in significant reductions to the cost and length of trials. The centralised database will analyse and normalise data in real-time against any number of criteria, including novel biomarkers, to provide more immediate feedback on drug safety and efficacy without the need to wait for clinical endpoints.
Significant opportunities also exist within developing countries where the lack of clinical and transportation infrastructure severely limits access to accurate diagnostic testing, which could save lives and dramatically improve quality of life. An affordable, portable device has the potential to make a major impact in these areas.
John Scott, Chief Executive Officer of XL TechGroup, said: "The formation of XL TechGroup's third company further demonstrates the success of our systematic approach to value creation. We are really excited about the potential of DxTech to transform current practice for diagnostic testing, to deliver substantial cost-savings and benefits across the pharmaceutical and healthcare industries."
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