PRESS RELEASE

Nicholas Piramal signs Product Development & Licensing Agreement with DxTech for point-of-care diagnostic testing system
 

Mumbai, 30 April  2008: Nicholas Piramal India Limited (“NPIL”, name proposed to be changed to Piramal Healthcare Limited), one of India’s largest pharmaceutical and healthcare companies, has entered into a long-term strategic alliance with DxTech LLC (“DxTech”), an 83.5% subsidiary of XL TechGroup (AIM: XLT). This strategic alliance includes a Product Development and Licensing Agreement, a Distribution Agreement and the establishment of a joint venture sales and marketing company in India.

DxTech is developing the fully-integrated Vantix™ 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.

DxTech’s Vantix™ platform has the potential to transform diagnostic testing in a range of emerging markets, including Asia, parts of Europe, and Central and Latin America. This would supplement its focus on the US$ 48 billion routine diagnostic market in the US. In such markets, the Vantix™ 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™ 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™ 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™ platform in India, Pakistan, Bangladesh, Sri Lanka, Nepal and Bhutan. In return, NPIL has paid a multi-million-dollar up-front fee and will pay 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.”
 

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Notes to Editors:

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 $ 900 million in FY2008.
The names of specific Group Companies are to be changed subject to shareholders’ and Central Government’s approval.

About Nicholas Piramal India Limited
(name proposed to be changed to Piramal Healthcare 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$ 718 million in 2007-08.

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 Limted to Piramal Healthcare Limited is subject to approval by the Company’s shareholders and Central Government.

For further information, visit www.nicholaspiramal.com

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 (www.petroalgae.com)
TyraTech Inc. (AIM: TYR, www.tyratech.com)
DxTech LLC (www.dxtech.com)
QuoNova LLC (www.quonova.com)
AgCert International plc (www.agcert.com)

XL TechGroup has also established GenXL LLC (www.gnxl.com) 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.