UT researchers team with XL Vision May 05, 2000 02:12 PM
ET
By Beth O'Connell, dbusiness.com
SEBASTIAN, Fla., and AUSTIN, Texas, May 5 (dbusiness.com) -- High-tech
business innovators working on Florida's east coast are teaming up with
researchers toiling in a Texas university lab.
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They are not strange bedfellows given the way emerging technology
companies are created these days.
Business incubator XL Vision Inc. has announced a partnership with the
University of Texas in Austin to launch a medical diagnostic company. The
new venture will utilize technologies licensed from the university and
target diagnostic testing for a variety of health conditions in humans and
animals. The diagnostic test is designed to yield nearly instantaneous
results.
For the university, the new, still-unnamed company marks a new approach
to working with the business community.
"This is the first time we felt comfortable enough to sign a deal whose
value rests principally upon the university taking an equity stake in the
company," said Dr. Juan Sanchez, UT's VP for research.
The equity sharing terms of the licensing agreement were not disclosed.
However, XL Vision says there is a commitment of an additional $1.3
million in a sponsored research agreement with UT. In addition, XL Vision
has hired one of the physicians -- former UT student Damon Borich, who
helped develop the technology -- to serve as chief medical officer for the
newly formed company.
The Austin-based University is counting on the track record of the
high-tech incubator located in Sebastian, on Florida's central east coast
just south of Melbourne.
The privately held XL Vision is a partnership company of
Internet-focused Safeguard Scientifics (NYSE: SFE) and incuVest of New
York. Both invest in innovative technologies that can become
market-leading public companies.
XL Vision's portfolio includes two companies it has taken through an
initial public offering: eMerge Interactive (Nasdaq: EMRG), an e-commerce
and online auction company for the cattle industry; and ChromaVision
Medical Systems Inc. (Nasdaq: CVSN), a laboratory medicine diagnostics
company that develops and manufactures an automated cellular imaging
system used in clinical and research applications.
UT professor and researcher John T. McDevitt says the sensor technology
at the core of the new medical diagnostic company can analyze a wide range
of chemicals including toxins, drugs, bacteria and blood products. The
technology uses a large number of miniaturized cavities that are created
within a silicon wafer.
"These ultrasmall 'test-tube' like structures, prepared at UT Austin's
microelectronics research clean room, serve as highly miniaturized
measuring devices that can detect in detail the content of complex
fluids," McDevitt said.
XL Vision will bring to the new company not only capital but also
entrepreneurial expertise. XL Vision's Mike Otworth will serve as interim
CEO, managing the company during the early growth stage.
The new company will have offices in Sebastian and open a new facility
in Austin with an initial hiring of 25 to 40 employees. The company's
expansion plans could include hiring up to 200 people over the next two
years.
XL Vision also plans to use the Austin site as a base for other
business ventures in the area.
Beth
O'Connell is a correspondent for dbusiness.com covering Central
Florida. E-mail her with story ideas and comments.
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