MERRIMACK, New Hampshire, April 30 /PRNewswire/ -- DxTech LLC ("DxTech"), an innovation company focused on putting high-quality diagnostic information in the hands of physicians in real time, has entered into a long-term strategic alliance with Nicholas Piramal India Limited ("NPIL"), one of the largest pharmaceutical and healthcare companies in India. The alliance includes a License and Development Agreement relating to DxTech's proprietary technology, a Distribution Agreement and an agreement to establish a joint venture between the companies for the marketing and sales of the commercial product.
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 economically viable in developing countries. In the US market, demand for the Vantix(TM) platform is expected to result from providing the physician with reference lab quality results, increased practice efficiency and additional revenue to the physician. DxTech assay and instrument development is being conducted at its facility in Merrimack, New Hampshire, while manufacturing of the proprietary sensor is being done at its facility in Cambridge, UK.
The alliance 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.
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."
Steve Lufkin, CEO of DxTech said, "We are delighted to be entering into this long-term relationship with Nicholas Piramal, a leading pharmaceutical and healthcare company in India. NPIL has a strong track record of success in diagnostics and we are proud to be associated with them. This relationship lays the foundation for how DxTech plans to enter other regional markets around the world.
NOTES TO EDITORS
About DxTech, LLC (http://.dxtech.com)
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 readers.
The DxTech Vantix(TM) system has the potential to revolutionize general patient care and chronic disease-state management, while boosting physician office revenue significantly.
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.
SOURCE DxTech and Nicholas Piramal