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Life Sciences Company Chooses Michigan for $3.7M Investment

Xoran Technologies Inc., an Ann Arbor-based company that designs and sells compact, high quality CT scanners for on-site use by medical specialists, plans to invest $3.7 million to expand its operations in Ann Arbor, MI. The expansion will create 386 new jobs, including 171 directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince Xoran Technologies to choose Michigan over competing national and international sites.

“Xoran Technologies is a true Michigan success story and a great example of the kind of high-tech companies that are thriving here and creating good-paying jobs in growing industries like life sciences,” says Governor Granholm. “Our commitment to diversifying our economy through efforts like the 21st Century Jobs Fund will generate hundreds of similar successes throughout the state in the near future.”

The MEDC approved a Single Business Tax credit valued at more than $7.1 million over 10 years to win the company’s investment. The city of Ann Arbor has proposed a 5-year tax abatement valued at $31,990 to support the project.

“We are very grateful to the MEDC for this assistance, which is a good example of Michigan’s commitment to nurturing the growth of high-tech companies that create new jobs in Michigan,” says Xoran Technologies President/CEO and co-founder Predrag Sukovic. “While a lot of great medical innovations never make it out of the research lab, we were able to move our CT technology from prototype to market thanks in part to our receipt of initial funding through a 2001 runner-up award in a Great Lakes Venture Quest Business Plan Competition (now called Great Lakes Entrepreneur's Quest) and through MEDC's Michigan Universities Commercialization Initiative Fund (MUCI) in collaboration with The University of Michigan Technology Transfer Office.”

“Helping innovative companies bring valuable, high-tech products and services to the marketplace benefits everyone,” he says. “We’re creating a lot of new jobs—which benefits Michigan, and we’re providing physicians with the specific imaging tools they need to treat their patients faster and more accurately—which benefits physicians and patients.”

An economic analysis conducted by the MEDC estimates that increased economic activity created by the new facility will generate an additional 215 indirect Michigan jobs, in addition to the 171 created directly by the company. The project is expected to generate more than $197 million in personal income for Michigan workers over the life of the tax credit.

“Together with the city of Ann Arbor, we put together a strong business case to help keep a Michigan-born company in Michigan,” MEDC President and CEO James C. Epolito says. “If not for our array of innovative economic development tools, another state or country would be celebrating this expansion and the new jobs that will be created as a result.”

The expansion is one of seven economic development projects the Governor announced recently. In all, they are expected to create and retain a total of 669 Michigan jobs.

Xoran was founded in 2001 by Sukovic and Neal Clinthorne, a Senior Associate Research Scientist in the Department of Radiology at the University of Michigan. Xoran has grown into a profitable commercial enterprise with more than 30 employees and more than $13.5M in annual revenue. Xoran’s specialized, low radiation CT scanners are used by medical specialists at the patient’s point-of-care, eliminating the expense and delay caused by sending patients off-site to a hospital or imaging center for CT scans. Xoran’s first two products, “i-CAT” dental scanners and “MiniCAT™” sinus and ear scanners have been sold worldwide. Xoran will soon launch sales of additional specialized point-of-care CT scanners, starting with an intra-operative sinus and ear scanner “xCAT” that can be used directly in the OR during surgical procedures.

The company was singled out for the “Innovator's Award” and named One of the “50 Companies to Watch in Michigan” by the Michigan Small Business & Technology Development Center, the Small Business Association of Michigan, the MEDC, the U.S. Small Business Administration-Michigan and the Edward Lowe Foundation.

In her 2006 State of the State address, Gov. Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 87,000 jobs as a result of targeted assistance provided by the MEDC.