Voyageur Pharmaceuticals Ltd. (TSX.V: VM) (OTC Pink: VYYRF) announced that it has reached the first milestone under its non-dilutive Collaboration and Funding Agreement with Bayer AG by submitting a complete feasibility work plan and timetable that has been approved by Bayer. This achievement triggered a USD $1 million payment, bringing the total received from Bayer to $1.35 million of the committed $2.35 million. The funding supports the ongoing feasibility study for a proposed 1,000 tonnes per year iodine production project, with the goal of securing a reliable North American source of high-purity iodine for contrast media drugs.
The milestone follows successful laboratory production of 99.8% purity iodine using Voyageur’s proprietary Mueller extraction process on produced water from the Anadarko Basin. This technical confirmation allowed Bayer to advance the program. A transportable pilot plant is nearing completion and is scheduled to begin field operations this fall. The funds will enable Fluor Corporation to complete the FEL-3 feasibility study once field data are available.
Brent Willis, President and CEO of Voyageur, stated, “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 project proposes a staged production rollout, beginning with 200 tonnes per year, with potential expansion to 1,000 tonnes per year. If the feasibility study is successful, Bayer and Voyageur may negotiate a long-term offtake supply agreement. A central manufacturing facility would process iodine concentrate from Mueller units and produce USP-grade pharmaceutical iodine for contrast drug manufacturing.
Fluor Corporation is providing engineering support, including thermodynamic modeling and project planning. The 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 of seven to nine months.
This development is strategically important for Voyageur as it aims to vertically integrate the barium and iodine contrast markets, reducing reliance on imported raw materials and lowering operating costs. The global contrast media market is estimated at approximately USD $7.06 billion, according to Market Research Future. Voyageur also owns the Frances Creek barium project and has developed five barium contrast products licensed by Health Canada.
The non-dilutive funding supports continued feasibility work through 2026 and reflects progress toward establishing a domestic, high-purity iodine supply for Bayer's iodine contrast drug manufacturing. Further updates will be provided as additional technical milestones are achieved.
