There are companies in North America selling barium sulfate with grades as high as 99% BaSO4. How does this effect your pharmaceutical market product line?
True, but they are NOT selling natural barite that makes USP pharmaceutical grade. Currently there are no sales of natural USP barite in North America. There are a few aspects to look at:
How do you compete with other barite providers who have precipitated barite that is 99% BaSO4?
- We are not competing with other barite companies, we are not selling pharmaceutical barite powder, we are selling barium contrast suspension products. There is a big difference. By selling contrast, we are selling our barite at the highest $/tonne price points in the natural barium sulfate market. The following is hypothetical base case on three standard formulas currently being sold into the USA market.
The following is selling prices are based on IBM Microdex Red Book discounted prices using third party minerals:
- Low Density 9 grams in bottle, CAD$3.17/9grams (CAD$352,222/tonne Barite)
- Medium Density 150g in bottle, CAD$4.89/150g (CAD$32,600/tonne Barite)
- High Density 320g in bottle, CAD$6.36/320g (CAD$19,875/tonne Barite)
When will the company begin cash flowing?
VOYAGEUR cash flow strategy is to begin cash flowing upon receipt of Health Canada (HC) approval on our product lines. We have secured USP barium sulfate from a third-party supplier. 2,000,000 grams has been landed in Calgary. Voyageur will be able to commence production after HC approvals are completed. Immediately upon HC approvals, Voyageur will conduct a 2 to 3 month testing before the product(s) go into sales. We will be using third party barite until the FC 10,000 tonne bulk sample is processed and delivered to the manufacturing plant.
Voyageur is working with strategic partners in India to diversify our production and we are looking at manufacturing in India using third party manufacturing companies.
Why is iodine an important part of Voyageur business plan?
We are applying the same strategic business plan to our iodine brine in Utah, that we are implementing with our barite. In Utah we have a prospective play that may contain high levels of iodine, bromine and lithium. All data within the area of interest around our claims suggest that the brines are mineral rich. By producing our own iodine and manufacturing our own iodine radio contrast products, will allow Voyageur to become a highly competitive company. By selling both iodine and barium contrast will allow for more rapid growth in a $7,000,000,000 pharmaceutical market. Iodinated Contrast is one of the highest consumed healthcare products in the marketplace.
What is your strategy to grow your company?
We are building a barium and iodine contrast business that will compete with the major pharmaceutical companies operating in this market. Our model is using our rare deposits to become a low cost producer of barium contrast. By using FC barite and potentially USA iodine, Voyageur will have the lowest cost of ingredients in the contrast business: FROM THE EARTH TO THE BOTTLE, is our strategic goal.
How big is the barium and iodine contrast market?
The combined global market for the radio-contrast market is estimated to be US$7 billion and growing at 4.7% CAGR. (source: Genus Medical Technologies) .
How big is the market for barium contrast?
The USA market is estimated to be $50,000,000 per year (source: Genus Medical Technologies) .
Why is there a shortage of USP barite?
- Pharmaceutical barite demand increases as the world population ages. Currently there is only one company we are aware of in China producing FDA/Health Canada approved pharmaceutical grade barite. This company only allocates 5% of its production to the international markets, 95% is allocated to the Chinese market. (source QINGDAO RED-BUTTERFLY BARIUM )
- There is allot of barite resources around the world. The issue is, from a geological perspective, barite is associated with heavy metals. Most barite deposits do not make grade for the pharmaceutical industry.
What is your competition?
- The barium contrast market is currently dominated by one company, Bracco Pharmaceuticals. Voyageur estimates they control 50% of the world market and 95% of the North American market. In the USA there is one smaller barium contrast company named Genus Medical Technologies. In Europe the largest company is Guerbert pharmaceuticals.
corporate.bracco.com/gb-en/e-z-em-canada-inc www.guerbet.com www.genusmedical.com
Why is barite & iodine important to the pharmaceutical sector?
- Because it blocks radiation, it is used in X-rays (looks opaque on X-ray film), CT and other diagnostic tests. Barium is used in medicine to diagnose gastrointestinal problems. Iodine is an injected intravenously.
In a few sentences, what sets you apart from your competitors?
- Voyageur is building a pharmaceutical brand based on low costs and being the only contrast pharmaceutical company in the world that owns and controls its main ingredient feed stock. By implementing this plan our company will be on trajectory to be one of the most highly competitive companies in this market with high margin and growth rates.
FROM THE EARTH TO THE BOTTLE = HIGH MARGINS.