Voyageur Pharmaceuticals Ltd (TSX-V:VM, OTC:VYYRF) announced it has secured its first international distribution agreement for its Smoothx 2% imaging contrast product with a sales commitment of US$1.9 million (C$2.6 million) over the first three years of commercialization.
Investors welcomed the news, sending shares of the developer of imaging contrast agents 18.4% higher mid-morning on Tuesday.
The sales agreement is with a company specializing in the sale of radiology products in Latin America, Voyageur said.
This initial agreement grants the distributor with the marketing and sales rights in two countries for SmoothX 2%, a contrast medium for use in abdominal Computed Tomography (CT) diagnostic examinations.
Voyageur said that the distributor will assume the costs and responsibility for product regulatory approvals and commercialization in the territory, allowing the company to introduce SmoothX in Latin America.
“This marks the beginning of Voyageur’s expansion into international markets and paves the way for the introduction of its full suite of barium sulfate contrast medium products for medical imaging,” Voyageur said in a statement.
Product pricing is based on volume milestones. Additional contract details are confidential due to the “highly competitive landscape” of the barium contrast industry, the company said.
Voyageur highlighted that it has four additional products at the late stages of development, positioning it to offer a comprehensive suite of diagnostic solutions.
It has a strategic focus on vertically integrating the barium and iodine contrast market, aiming to become a key player by producing its own barium, iodine, and fullerene minerals.