XL TechGroup creates its fifth company, QuoNova
28 December 2006
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 QuoNova LLC, the fifth company to reach the development stage of XL TechGroup's proven methodology for value creation. QuoNova follows AgCert International plc, which was created by XL TechGroup in May 2002 and listed on the London Stock Exchange in June 2005, TyraTech LLC which was created in July 2004, DxTech LLC which was created in July 2005, and PetroAlgae LLC which was created in September 2006.
QuoNova is commercialising a novel Quorum Sensing Blocker (“QSB”) technology which affects signalling between bacteria and has permitted the identification of substances which influence bacterial growth and colonisation (biofilm). This breakthrough technology offers approaches to bacterial control which will avoid resistance development and toxicity, and in addition opens completely new application avenues in a broad range of high value markets. The breadth of the technology base puts QuoNova in a leading position to achieve a breakthrough in addressing an ever increasing need and multi billion dollar markets for safer, efficacious agents in the global fight against infection and the damage caused by bacterial biofilms.
QuoNova's business plan addresses multiple markets, such as treatments for lung infections, medical device coatings, oral and optical care products, domestic or industrial cleaners, anti-fouling paints, agrochemicals and large scale industrial applications in the water and petroleum industries. Proof of concept for the technology has already been established, and commercialisation is envisaged within two years for the most advanced applications. Discussions with a number of potential development partners and end users are already well advanced.
QuoNova has acquired its intellectual property relating to proprietary QSB compounds from 4SC AG, a drug discovery and development company based in Germany. In addition to this broad patent and patent application portfolio, QuoNova has obtained an exclusive license from 4SC to software and related intellectual property useful for the creation and development of additional compounds in the field of quorum sensing or biofilm inhibitors and activators. In return, 4SC has received a 10% equity interest in QuoNova and will receive payments totalling US$2 million and research funding spread over a four year period. The research funding relates to agreements for 4SC to provide additional research and development activities on behalf of QuoNova directed towards compound optimization and support.
John Scott, Chief Executive Officer of XL TechGroup, said: “The global human and economic costs of infection and biofilm damage are enormous, and we are very excited about the treatments that the QuoNova technology has the potential to provide. QuoNova is the second company that we have started in 2006 and the fifth overall within the last five years that has come out of our systematic approach to creating truly disruptive technology businesses.”
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 |
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 |
NOTES TO EDITORS
About XL TechGroup
XL TechGroup is in the business of significant value creation. Working with major international corporate and technology partners such as AES, 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 are built from scratch, and are then funded and developed 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 valuation of at least US$400 million within four years from its creation. While an XL TechGroup company might perform a stock market listing at an earlier point in this four year timeframe, XL TechGroup would retain its controlling interest and would continue to assist with the company's development.
XL TechGroup's companies to date are: AgCert International plc (www.agcert.com), TyraTech LLC (www.tyratech.com), DxTech LLC (www.dxtech.com) and PetroAlgae LLC.
XL TechGroup has also established GenXL LLC as a joint venture to capture the value of those prospects that do not quite meet the US$400 million, four year criteria but still demonstrate considerable potential worth. Over and above XL TechGroup's core business model, GenXL will review a significant flow of opportunities from both XL TechGroup and GEN3 in order to generate new companies, standalone product lines and technology licensing opportunities or an appropriate mix of these.
For further information, see www.xltechgroup.com
About 4SC
4SC AG has been listed in the Prime Standard of Frankfurt Stock Exchange since 15 December 2005. Founded in 1997 and now with a staff of 59, the company develops novel drug candidates for inflammatory diseases and cancer using a cheminformatics based technology platform. Traditional high throughput screening of therapeutic agents has been transferred from the lab to the computer. Thus, the company offers substantial cost and time advantages as well as increased success rates in drug development. 4SC AG uses its patented technology platform to create a sustainable product pipeline for active agents that are developed in early clinical phases ("proof of concept") and subsequently result in upfront and milestone payments as well as participation in sales generated by out-licensed products to the pharmaceutical industry. There are currently five projects in the pipeline. The first project on the treatment of rheumatoid arthritis is currently undergoing clinical phase IIa. Three other product candidates are in pre-clinical development and another project is in the research stage. Furthermore, the company has its technology platform in co-operation projects with biotech and pharma companies and is already generating initial revenues.
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