Voyageur Hits Milestone, Gets $1M from Bayer for Iodine

Calgary-based Voyageur Pharmaceuticals Ltd. (TSX.V: VM) (OTC Pink: VYYRF) has announced a significant milestone under its non-dilutive Collaboration and Funding Agreement with Bayer AG. The company has successfully submitted a complete feasibility work plan and timetable for its proprietary Mueller iodine extraction process, which has been approved by Bayer. This approval triggered a USD $1,000,000 milestone payment, bringing the total received from Bayer to USD $1,350,000 out of a committed USD $2,350,000. The funds will support the completion of a FEL-3 feasibility study by Fluor Corporation, with the remaining USD $1,000,000 expected upon study completion. This collaboration is part of Voyageur's strategy to establish a domestic, high-purity iodine supply for contrast media drugs, reducing reliance on imports and enhancing supply-chain security. The company's Houston R&D team has already produced 99.8% purity iodine from Anadarko Basin produced water, validating the technology. The transportable pilot plant is nearing completion and will enter field operation this fall. Voyageur's CEO, Brent Willis, emphasized the importance of this milestone in accelerating the iodine supply strategy and moving closer to a vertically integrated supply chain for radiology drugs. The project aims for 1,000 tonnes per year iodine production, with a staged rollout beginning at 200 tonnes per year. Successful feasibility could lead to a long-term offtake agreement with Bayer. Voyageur also highlights its Frances Creek barium project and plans for contrast drug manufacturing, aiming to become the first vertically integrated company in the radiology contrast media market. The global contrast media market is estimated at USD $7.06 billion. This development follows the initial collaboration funding news and underscores the progress in technical milestones and strategic partnerships.

Fluor Corporation (NYSE: FLR) is providing engineering support, with phases FEL-2 and FEL-3 expected to take approximately four to five and seven to nine months, respectively. Voyageur's business plan includes generating cash flow through partnerships with GMP manufacturers and transitioning to domestic production. The company's Frances Creek project holds a high-grade barium sulfate resource, which management believes will replace synthetic products with higher quality imaging agents. Voyageur's motto, "From Earth to Bottle," reflects its commitment to controlling all primary input costs. The company plans to provide further updates as feasibility work progresses.