Voyageur Pharmaceuticals Ltd. (TSX.V: VM) (OTC Pink: VYYRF) announced that it has reached the first milestone under its Collaboration and Funding Agreement with Bayer AG, receiving a USD $1 million payment. The milestone was achieved after Voyageur submitted a complete feasibility work plan and timetable, which Bayer approved. This development is significant as it validates the technical progress of Voyageur’s proprietary iodine extraction process and brings the company closer to establishing a North American source of high-purity iodine for use in medical imaging contrast drugs.
Bayer’s approval was based on successful laboratory results from Voyageur’s Houston R&D team, which produced 99.8% purity iodine from Anadarko Basin produced water using the company’s patent-pending Mueller process. With this technical confirmation, Bayer has now paid Voyageur a total of USD $1,350,000, including the initial USD $350,000 received in March. The remaining USD $1,000,000 is scheduled to be released upon completion of the feasibility study, which is expected to be conducted by Fluor Corporation once the pilot plant becomes operational.
The transportable pilot plant is nearing completion and is set to enter field operations this fall. This funding will enable Fluor to complete the FEL-3 feasibility study, which is critical for evaluating the commercial viability of the project. If successful, the project could lead to a second phase and a long-term offtake agreement with Bayer. The proposed production capacity is 1,000 tonnes per year of iodine, with a staged rollout beginning at 200 tonnes per year.
Brent Willis, President and CEO of Voyageur, emphasized the importance of this milestone: “Achievement of this first milestone under our agreement with Bayer is an important step forward for Voyageur. It confirms that the feasibility work is advancing as planned and triggers the first major non-dilutive payment under the collaboration. This capital is expected to further accelerate our iodine supply strategy and move us closer to validating a reliable North American source of high-purity iodine for use in contrast media drugs.”
The collaboration with Bayer is part of Voyageur’s broader strategy to vertically integrate its supply chain for radiology drugs. By securing domestic iodine production, the company aims to improve supply-chain security, reduce reliance on imported raw materials, and lower operating costs. The global contrast media market is estimated at approximately USD $7.06 billion, according to Market Research Future.
Fluor Corporation has been providing engineering support, including thermodynamic modeling and project planning. The next phases of the project involve FEL-2 (Concept Design), expected to take four to five months, followed by FEL-3 (Basic Design), which will take seven to nine months. These phases will define a demonstration-scale configuration of the modular field units and central processing hub.
Willis added: “Voyageur is focused on building multiple potential revenue streams through a staged commercialization strategy. This includes near-term opportunities from barium contrast sales, iodine sales under the Bayer collaboration, and longer-term opportunities from barium and iodine-based contrast drug sales.”
The non-dilutive funding supports feasibility work through 2026 and reflects ongoing progress toward potentially establishing a domestic, high-purity iodine supply for Bayer’s iodine contrast drug manufacturing. Voyageur’s iodine project, combined with its Frances Creek barium project, is central to its vision of becoming the first vertically integrated company in the radiology contrast media drug market.
