Voyageur Pharmaceuticals Ltd. (TSX.V: VM) (OTC Pink: VYYRF) has reached a significant milestone in its non-dilutive Collaboration and Funding Agreement with Bayer AG. The company announced that Bayer has approved its feasibility work plan and timetable, triggering a USD $1 million payment. This payment, combined with an initial USD $350,000, brings total funding to USD $1.35 million of the USD $2.35 million committed by Bayer.
Voyageur’s Houston R&D team successfully demonstrated its proprietary Mueller iodine extraction process, producing 99.8% purity iodine from produced water in the Anadarko Basin. This technical success provided the validation needed for Bayer to advance the project. The transportable pilot plant is nearing completion and is scheduled for field operation this fall. The funding will enable Fluor Corporation to complete the FEL-3 feasibility study once field data are available.
Brent Willis, President and CEO of Voyageur, emphasized the importance of this milestone: “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 project aims to produce 1,000 tonnes of iodine per year, with an initial rollout of 200 tonnes. Upon successful completion of the feasibility study, Bayer and Voyageur may negotiate a long-term offtake agreement. The non-dilutive funding supports continued feasibility work through 2026, aligning with Voyageur’s strategy to establish a domestic, high-purity iodine supply for Bayer’s contrast drug manufacturing.
Fluor Corporation (NYSE: FLR) is providing engineering, thermodynamic modeling, and project planning support. Subsequent engineering phases will progress through FEL-2 (Concept Design) and FEL-3 (Basic Design) to define a demonstration-scale configuration. The FEL-2 phase is expected to take four to five months, followed by FEL-3 at seven to nine months.
Voyageur’s vertically integrated strategy aims to improve supply-chain security and reduce reliance on imported raw materials. The global contrast media market is estimated at approximately USD $7.06 billion. Mr. Willis added, “The Bayer collaboration, combined with technical support from Fluor, continues to strengthen the foundation for scalable domestic iodine production.”
This milestone marks a step forward in Voyageur’s plan to secure a reliable source of iodine, a critical ingredient in contrast media, and reduce dependence on overseas supplies. The company’s progress with Bayer and Fluor underscores its commitment to building a robust, domestic supply chain for radiology drugs.
