GenXL invests in INSERO
26 November 2007
XL TechGroup (AIM: XLT), the creator of world-changing companies that solve identified, global unmet market needs, is pleased to announce that its value creation joint venture, GenXL LLC (“GenXL”), has entered into its second company development agreement.
GenXL has taken a 70% equity interest in Australian company INSERO Pty. Ltd. (“INSERO”) in exchange for an undisclosed capital commitment that will be used to fund pre-clinical development and milestone achievements. The remaining 30% is owned by the core team of scientists who developed the technology. INSERO was founded in 2004 by Dr. Stephen McMahon and Dr. Anthony Rodgers in Sydney, Australia as a specialized pharmaceutical company working on developing implantable drug delivery systems, with an initial focus on hypertension.
High blood pressure, or hypertension, affects up to one-quarter of the adult population in most middle and high income countries, and is the single leading cause of premature death worldwide. There is a range of drugs available to treat hypertension, and the leading three drugs – Amlodipine, a calcium channel blocker (Pfizer), and the angiotensin receptor blockers, Valsartan (Novartis) and Losartan (Merck) – accounted for over US$12 billion of sales in 2006 (Source: MedTrack) of a total global market projected to grow from US$36 billion in 2002 to US$50 billion by 2008 (Source: Datamonitor, 2003 “Reuters Business Insight: Future of the Cardiovascular Market to 2008”). However, a major problem with existing hypertension treatments is non-compliance – in essence patients failing to keep up with their medication programmes, resulting in treatment failure and disease progression. Non-compliance of 50% or greater is common.
There have been no major new developments in hypertension treatment in the last 10 years and, although a few new drugs are now at various stages of clinical development, none of them involve an implant. As a result, none of them provide a potential solution to the non-compliance associated with hypertension treatment programmes.
INSERO is working with a US based company on a feasibility study which is designed to evaluate INSERO's technology in conjunction with the US company's own FDA approved implant technology. These studies are expected to be completed within the first quarter of 2008 and, assuming they are positive, INSERO expects to obtain a licensing agreement covering the novel implant technology in relation to specified compounds.
Dr. MacMahon is Principal Director of The George Institute at Royal Prince Alfred Hospital in Sydney, and Professor of Cardiovascular Medicine at the University of Sydney. He is a leading international authority on blood pressure lowering treatments and their effects on cardiovascular diseases. He has contributed to international guidelines on the treatment of hypertension and regulatory policy on the labeling of antihypertensive drugs. Dr. Rodgers is Director of the Clinical Trials Research Unit and Professor of Epidemiology at the University of Auckland, New Zealand. He is also a Professorial Fellow at The George Institute at Royal Prince Alfred Hospital in Sydney. He is the leading international authority on the global burden of blood pressure-related diseases, and he has contributed widely to international health policy concerning the prevention of common serious diseases, in particular cardiovascular diseases. He was principal author of the World Health Organization's 2002 World Health Report.
John Scott, CEO of XL TechGroup, commented: “INSERO represents an exciting technology platform which deals directly with the biggest problem in treating hypertension, namely the high levels of patient non-compliance. The INSERO solution therefore allows for improved patient results for existing treatments as well as providing a vehicle for new patents on existing therapeutics.”
For further information:
| XL TechGroup Inc. | |
| John Scott / Harold Gubnitsky | Tel: +1 321 409 7403 |
| hgubnitsky@xltg.com | www.XL TechGroup.com |
| Chris Munden, Director of Investor Relations | Tel: +44 (0) 20 7398 7720 |
| cmunden@xltg.com | |
| Nomura Code Securities | |
| Richard Potts, Corporate Finance | Tel: +44 (0) 20 7776 1200 |
| www.nomuracode.com |
XL TechGroup media enquiries:
| Abchurch Communications | |
| Heather Salmond / Gareth Mead | Tel: +44 (0) 20 7398 7700 |
| heather.salmond@abchurch-group.com | www.abchurch-group.com |
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