Voyageur Pharmaceuticals Ltd (TSX-V:VM, OTC:VYYRF) told investors it has completed the formulation and engineering for the production processing of its dry powdered barium contrast media product HDXBaTM.
The company explained in a statement that HDXBaTM is an oral contrast agent for suspension used as an oral drug for use in double-contrast radiographic examinations of the esophagus, stomach, and duodenum. It has a Health Canada-approved license for HDXBaTM, which has also been formulated to meet US Food and Drug Administration (FDA) drug guidelines.
“Voyageur launched its first oral contrast agent SmoothX to the Canadian market, and it was well received for future use,” the company said in a statement.
“Due to the sole source environment in Canada for barium contrast agents, clients have asked Voyageur to produce a full suite of products to allow them to make a seamless transition to Voyageur's product line.”
The company said it is working with Alberta Veterinarian Laboratories (AVL) and its Solvet subsidiary Solvet to accelerate the formulation and testing of the remaining products that the market requires to ensure supply chain security for clients.
AVL is currently formulating the next three products with Health Canada licences: MultiXBa, MultiXs and MultiXthin. Upon completion of its full suite of products, Voyageur said it will begin penetrating the Canadian radiology market.
Frances Creek barium sulphate project
Voyageur said it is progressing with its plans to become a fully vertically integrated radiology drug company by domestically producing its own minerals for radiology drugs, including barium sulfate, iodine, and carbon fullerene.
When it reaches production, the company said its ingredient cost of barium sulphate from its Frances Creek project in British Columbia will drop significantly, allowing for highly competitive pricing that will produce highly profitable revenue streams.
By producing domestically, Voyageur said the industry will no longer be reliant on foreign supply chains, enabling North American radiology pharmaceutical consumers to potentially achieve a reliable secure supply chain.
A preliminary economic assessment for the Frances Creek barium sulphate project gave it a net present value of $344 million, with projected pre-tax revenue of $839 million generated over 10 years.
Voyageur said it is one of the few providers of commercial natural pharmaceutical grade barium sulfate on a global scale, as its current Chinese supplier has confirmed the unavailability of such a product.
The company currently imports synthetic man-made barium sulfate to initiate sales due to a lack of available supply of low-cost natural barium sulfate.
Contact the author at stephen.gunnion@proactiveinvestors.com