Voyageur Pharmaceuticals Ltd. (TSX.V: VM) (OTC Pink: VYYRF), a Canadian developer of pharmaceutical-grade barium and iodine contrast media for medical imaging, has announced the achievement of the first milestone under its non-dilutive Collaboration and Funding Agreement with Bayer AG. The milestone was reached by submitting a complete feasibility work plan and timetable that has been approved by Bayer. In connection with this progress, Bayer has remitted Milestone Payment I of USD $1,000,000 to Voyageur. Combined with the initial funds of USD $350,000 paid on March 31, 2026, Voyageur has now received USD $1,350,000 of the USD $2,350,000 committed by Bayer.
The milestone follows successful laboratory production of 99.8% purity iodine from Anadarko Basin produced water using Voyageur's proprietary patent-pending Mueller iodine extraction process. These results provided the technical confirmation required for Bayer to advance the program. The transportable pilot plant is nearing completion and is scheduled to enter field operation this fall. This funding will allow Fluor to complete the FEL-3 feasibility study once the pilot plant is operational and field data are available. The remaining Milestone Payment II of USD $1,000,000 is scheduled to be released upon completion of that study.
Brent Willis, President and Chief Executive Officer of Voyageur, commented: "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. Combined with our Frances Creek barium project and planned drug manufacturing capabilities, this work remains central to building a secure, vertically integrated supply chain for radiology drugs."
Subject to successful completion of the feasibility study, Bayer and Voyageur may consider advancing the project into a second phase, to negotiate a long-term offtake supply agreement. The project proposes a 1,000 tonnes per year of iodine production, with a staged production rollout, beginning with 200 tonnes per year production. Upon completion and testing of Voyageur's 200 tonnes per year iodine extraction unit (Mueller process), Voyageur may evaluate to construct and deploy 200 tonnes/year units to the field and build out over time and potentially expand capacity to 1,000 tonnes per year. In such a scenario, a central iodine manufacturing facility would process the iodine concentrate created from the Mueller processing units, and manufacture USP pharmaceutical grade iodine, used in manufacturing iodine contrast drugs.
Fluor Corporation (NYSE: FLR), a leading global engineering, procurement, and construction firm, has been actively supporting Voyageur with engineering, thermodynamic modeling, and project planning. Work is progressing on schedule. Subsequent engineering phases will progress through FEL-2 (Concept Design) and FEL-3 (Basic Design) to define a practical demonstration-scale configuration of the modular Field Unit plus Central Hub architecture. The FEL-2 phase is expected to require approximately four to five months, followed by FEL-3 of approximately seven to nine months, with corresponding increases in engineering definition and cost-estimate accuracy.
Voyageur's vertically integrated strategy aims to improve supply-chain security, reduce reliance on imported raw materials, and lower operating costs for the production of medical imaging contrast agents. The global contrast media market is estimated at approximately USD $7.06 billion.
Mr. 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 Bayer collaboration, combined with technical support from Fluor, continues to strengthen the foundation for scalable domestic iodine production."
The Company will provide further updates as the feasibility work progresses, and additional technical milestones are achieved.
