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Austin biomed firm Xenex relocating to San Antonio
May 31, 2012


Morris Miller, the CEO of Xenex Healthcare Services, will announce Friday plans to relocate headquarters to San Antonio. (Photo by Erik Reyna)

By W. Scott Bailey, San Antonio Business Journal

San Antonio has scored another economic win.

This time, at Austin's expense.

Xenex Healthcare Services, a young company that is projecting explosive growth, will announce on Friday plans to move its headquarters and manufacturing operations from the Capital City to the Alamo City.

The company, established in 2009, has developed and patented a pulsed xenon technology that it has incorporated into a robotic device designed to eliminate the deadly microorganisms that can cause serious hospital-associated infections.

In February, the Business Journal reported that Xenex had tapped Morris Miller, co-founder of San Antonio tech giant Rackspace Hosting (NYSE: RAX), as its new CEO.

Miller told the Business Journal then that Xenex was in discussions with San Antonio officials about the possibility of moving the company here.

"I don't know that the medical devices (industry) has been the focus of Austin the way that it has in San Antonio," Miller said in February.

Xenex currently employs about 30 people. That number could double in 2012 as the company looks to expand its reach nationally and internationally and keep up with growing demand for its infection-fighting medical device.

According to Xenex, there are about 2 million cases of hospital-associated infections annually. The mortality rate from those infections is about 5 percent.

As of February, the company had its product in some two-dozen hospitals across the country. The company hopes it can grow that number to 240 hospitals by the end of 2012. That would represent a minimum of roughly $20 million in revenue based on the sale of only one device per hospital. Some hospitals are purchasing multiple machines.

Xenex officials say they will also look to market their device, which costs approximately $80,000 per unit, to hospitals in other countries.

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