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Xenex lands $11 million investment
November 21, 2013

By Peggy O'Hare, San Antonio Express-News

SAN ANTONIO - The San Antonio company that launched robotic technology used to disinfect hospital rooms has secured an additional $11.3 million in funding that will enable it to expand sales internationally.

Xenex Disinfection Services' funding boost from venture capital and private sources also will be used for product development and to ramp up the company's sales force.

"Internationally, we've just seen a huge amount of pull for a green solution - and that's what we have," Xenex CEO Morris Miller said.

The privately held company manufactures and sells portable robots that sanitize hospital rooms using pulsating rays of xenon ultraviolet light. The technology helps reduce hospital-acquired infections by eliminating pathogens and germs from a room in five minutes, company officials said.

Customer demand increased after two medical journals this year published peer-reviewed studies done at selected hospitals using Xenex's technology, Miller said.

Since Xenex launched in 2009, more than 100 hospital systems nationwide have purchased its robots, including many Veterans Health Care System hospitals. University Health System recently became the first civilian hospital in San Antonio to purchase the technology.

Xenex, which employs 75 people, now has several trials underway overseas, but declined to identify specifically where those are taking place.

"We're certainly interested in the countries closest to us," such as Canada, Mexico and in South America, spokeswoman Melinda Hart said in an email.

The latest round of funding includes investments from the San Antonio venture-capital fund Targeted Technology Fund II, well-known Battery Ventures and supporters that invested in Xenex previously, some since the company's beginning.

Since its inception, Xenex has secured total investments of nearly $30 million, including the financial boost revealed Thursday.

"They're tackling a very significant issue in health care, and they have a very effective solution," said Paul Castella, a senior managing partner of Targeted Technology Fund II. "I think the solution that Xenex has is clearly superior to the old techniques."


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