While exploration companies focus on sourcing essential minerals to become profitable producers and biotech companies look to develop mineral based therapeutics for the healthcare sector, one Calgary-based company is managing to do both,
Voyageur Pharmaceuticals Ltd. (
TSX-V: VM,
OTC: VYYRF,
Forum). Their mission statement:
From the Earth to the Bottle!
It is the impressive business model of Voyageur that has made the company stand out as much more than a pharmaceutical firm. Voyageur is focused on the sourcing and manufacturing of iodine & barium contrast suspension products that are in high demand by the healthcare industry for X-Rays, MRIs, and CT Scan applications. They have assembled a highly qualified team of pharmaceutical experts to advance the company to cash flow.
Recent demand trends and forecasts in the pharmaceutical industry confirm a need for barium and iodine, especially in North America. According to Markets & Markets Research Ltd, Global Forecast to 2024 "The contrast media/contrast agents market is expected to reach USD $6.0 billion by 2024 from an estimated USD $5.0 billion in 2019, at a CAGR of 3.8%.
The key factors driving the growth of this market are increasing approvals for contrast agents and rising volume of CT & MRI examinations globally". Radio-graphic contrast is a high-volume consumable in healthcare.
Controlling production and costs from "the Earth" to "the Bottle" on pharmaceutical minerals, drugs & nutraceuticals is what Voyageur is shaping up to do. This is a highly competitive advantage and a key to successful growth in the healthcare market. Voyageur is following a model where having low-cost barium allows for increased iodine contrast sales.
The barium contrast market is unique in the fact that there is only
one supplier of natural pharmaceutical grade barite in the world, and they are in China. World-wide, there is a shortage of natural USP pharmaceutical barium sulfate, this has forced most manufacturers to use synthetically made, high-cost barite for their products.
Voyageur is poised to bring their barite quarry, located in Western Canada, into production and to become the only competitor in the world with its 100% owned long term natural, low-cost pharmaceutical grade barium sulfate.
What's the next key catalyst? Product registrations. The Company is awaiting final Health Canada approvals, and concurrently, will apply for its FDA Registrations to market and sell Voyageur Pharmaceutical products in the USA with the proceeds of this $0.05 unit (shares + warrants) financing round.
Voyageur has developed a business model to generate near-term cash flow. Through deals with third-party GMP contractors, the company has the ability to manufacture and bottle barium and iodine contrast suspension products quickly, and has manufacturing relationships in Canada and India. Voyageur previously sourced barium sulfate from China that is held in inventory and ready to begin production upon pending Health Canada approvals.
Voyageur has made some great strategic partnerships and has added ThinQ from India to their team. ThinQ brings Voyageur scientific & drug formulation expertise and significant FDA regulatory experience. ThinkQ are a generic drug developer that manufactures 25 prescription drugs, with 30 drugs under development and 24 API's (Active Pharmaceutical Ingredients). Voyageur is working with ThinQ negotiating third party manufacturing of barium and iodine contrast, using ThinQ iodine compounds, imported barium sulfate and eventually Voyageur’s barium sulfate.
But the real opportunity is looking at this company over the long-term, as Voyageur has the mineral resource to become a vertically integrated manufacturer. The Company's Frances Creek barite project is one of the higher-grade barium projects in the world. By owning the source of the main feed-stock ingredients for the drugs being manufactured, creates the greatest opportunity for growth and long-term success. Once this plan is fully implemented on both barium and iodine, Voyageur will be the only fully integrated company in the radiographic contrast media supply chain. Having low ingredient costs may allow for exciting growth potential.
The company plans to use the same strategy to develop their iodine resource as phase two in their integration business plan. Voyageur will implement the same steps, use third party iodine and manufacturing, followed by producing their own iodine products from mineral brine sources. Upon fully integrating both barium and iodine, Voyageur will have significant competitive advantages in this high growth industry.
To further develop its earth-to-bottle business model, Voyageur Pharmaceuticals has launched a private offering for CAD$600,000
. The financing consists of common share equity units of the Company at a price of $0.05 per unit, with each unit consisting of one common share and one full common share purchase warrant redeemable at $0.10 for twenty-four months. Part of this offering will include flow-through units as well, consisting of one Flow-Through share at a price of $0.05 with a full Common Share (Non-Flow-Through) warrant at $0.12 for two years (subject to acceleration clause - please see term sheet for details).
The net proceeds received by Voyageur from the Offering will be used to advance the Frances Creek barium sulfate project. Approximately $300,000 will be used to update the NI 43-101 report and advancement of the preliminary economic assessment and pre-feasibility study. Approximately $150,000 will be used to progress Health Canada and begin FDA drug applications and the remaining $150,000 will be allocated to planning for production startup, and bulk sample planning and other general corporate purposes. It is important to note that Voyageur's drugs are all generics, and the FDA is offering incentives to Voyageur because it is a small cap start up and to foster a competitive marketplace. This financing will allow Voyageur to advance to near-term cash flow through partnerships with manufacturing companies using third party ingredients, an important milestone to move the company towards full integration.
Taking a step back and looking at the company's rollout strategy, it is clear to see the well-thought-out plan. By beginning to sell product using third party sources, Voyageur will be able to develop its Frances Creek operation and ultimately build a large-scale fully integrated production facility. Manufacturing all their products in house will provide supply chain security and unmatched quality and this in turn will improve product returns. With their global sales plan, the future looks very bright for Voyageur Pharmaceuticals.
The Voyageur team are a unique group of entrepreneurs who are combining mining and pharmaceuticals together as one, to create the highest value supply chain model in the industry.
From the Earth to the Bottle!
Voyageur Pharmaceuticals intends to do one or more closings prior to January 31st, 2021, and is offering the opportunity for both accredited investors and retail investors to own units (shares + full warrants) at $0.05 through the Dealers Exemption. The Company is also offering flow-through units consisting of one flow through share with a ½ non-flow through Common Share purchase warrant. Please click below or contact Ron Love (+403) 818-6086 or Steve Livingston (+403) 471-1659 for details.
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