In a revealing interview on Investor.Coffee, host Tracy Weslosky engages in an enlightening conversation with Brent Willis, President, CEO, and Director of Voyageur Pharmaceuticals Ltd. (TSXV: VM). This discussion sheds light on the company’s innovative strategies for 2024, marking its emergence as a leader in the pharmaceutical and medical imaging sectors. Willis offers a deep dive into how Voyageur Pharmaceuticals is preparing to redefine these industries with its trailblazing developments.

As a pioneering entity in the pharmaceutical and medical imaging industry, Voyageur Pharmaceuticals Ltd. is renowned for its specialization in the development of Active Pharmaceutical Ingredients (API) for barium, iodine, and carbon, complemented by its advancement in high-performance, cost-effective imaging contrast agents. The Canadian firm is spearheading a strategic effort to vertically integrate the contrast imaging market. This ambitious endeavor involves producing its own minerals and establishing partnerships with reputable third-party GMP pharmaceutical manufacturers in Canada. With a clear aim to dominate the market, Voyageur is committed to ensuring its products meet stringent global regulatory standards. The company’s strategic roadmap includes aggressive expansion plans to break into international markets by late 2024 and to achieve FDA approvals for entry into the US and European markets by the end of 2025. These initiatives are reinforced by recent distribution agreements, underscoring Voyageur’s dedication to distributing its groundbreaking products on a global scale.

Adding to its commitment to innovation and market dominance, Voyageur’s portfolio boasts five licensed variant contrast products, directly addressing the acute global shortage of such agents, particularly focusing on barium contrast agents for radiology. The company stands on the brink of manufacturing these products, anticipating a substantial increase in revenue potential and aiming to secure a significant market share. This goal is facilitated by Voyageur’s strategic resource sourcing and manufacturing approach, especially its initiative to mine its own barium sulfate, promising to significantly reduce costs and boost its competitive advantage. The partnership with Rain Cage Carbon Inc. represents a major leap forward in imaging technology through the development of metallofullerene for MRI contrast agents. This collaboration not only sets the stage for introducing safer and more effective diagnostic tools but also reflects Voyageur’s commitment to environmental sustainability. Aiming to be the first carbon-neutral pharmaceutical company via carbon capture technology, Voyageur aligns its practices with its environmental, social, and governance (ESG) goals, poised to make a significant impact on the imaging contrast agent market with its carbon-neutral agents and innovative manufacturing techniques. To access the complete interview, click here

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About Voyageur Pharmaceuticals Ltd.

Voyageur, a Canadian public company trading under the symbol VM on the TSX Venture Exchange, is in development of barium, iodine and carbon Active Pharmaceutical Ingredients (API) and high-performance, cost-effective imaging contrast agents. With a strategic focus on vertically integrating the barium, iodine and carbon contrast imaging market, Voyageur aims to become a key player by producing its own barium, iodine, and fullerene minerals.

Voyageur’s business plan is set to generate cash flow by partnering with established third-party GMP pharmaceutical manufacturers in Canada, ensuring the validation of its products by regulatory agencies worldwide. As the Company solidifies its presence in the market, it will transition into a high-margin domestic manufacturer of radiology drugs, further expanding its revenue streams.

Voyageur is committed to sustainability and environmental stewardship. The Company envisions a future where carbon neutrality is the norm, and to achieve this, it plans to build state-of-the-art carbon-neutral infrastructure. By investing in carbon neutral energy sources and sustainable manufacturing practices, it aims to become 100% self-sufficient across all its manufacturing activities. Voyageur’s commitment to the environment sets it apart as a pioneer in the industry.

At the core of the Company’s operations, Voyageur owns a 100% interest in two barium sulphate (barite) projects, including the Frances Creek and Pedley Mountain properties. Additionally, Voyageur holds interests in a high-grade iodine, lithium, and bromine brine project situated in Utah, USA, further bolstering its position in the industry. Voyageur also owns a 100% interest in two battery mineral projects which focus on copper/zinc development.

Voyageur’s ambitious vision is to become the first vertically integrated, carbon-neutral company in the imaging contrast media drug market. By controlling all primary input costs, from the sourcing of raw materials to final production, it plans to ensure unmatched quality and cost efficiency. Voyageur embodies the motto of ” From the Earth to the Bottle ,” highlighting its commitment to responsible sourcing and manufacturing practices.

To learn more about Voyageur Pharmaceuticals Ltd., click here

Disclaimer: Voyageur Pharmaceuticals Ltd. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

Helium is a valuable resource that is used in a wide range of applications. It is recovered primarily from natural gas deposits, is non-renewable, and cannot be easily synthesized or substituted.

The privatization shift in the US, increasing demand, and rising prices have created an emerging helium industry in North America that now presents opportunities for investors.

Why helium is critical

Helium is used in key areas including magnetic resonance imaging devices, engineering and scientific applications, as a lifting gas, electronics and semiconductor manufacturing.

Additionally, there is a rapidly growing application in superconductor manufacturing, the rocket industry (used by Space X (private) and NASA), and national defense applications, including missile guidance systems, scientific balloons, and surveillance craft.

Helium is on the Critical Minerals list for Canada and Australia but not the EU, the UK, or the US. In 2022, the list of critical minerals released by the United States Geological Survey (“USGS”) added nickel and zinc but removed helium, potash, rhenium, and strontium.

However, Helium is often discussed in public policy because:

• It comes from a depleting source (natural gas);
• The pricing of helium is complex due to customized packaging and transportation costs; and, 
• Most importantly, has several ‘critical’ aerospace, biomedical, national security, and scientific uses.

New supply required as demand grows

According to various industry studies, the helium gas market was valued at US$23.1 billion in 2022 and is estimated to reach US$30.8 billion by 2028, growing almost 5% annually.

The growth drivers include the rocket industry, national defense applications, medical imaging machines, and the continued growth in the electronics and semiconductor industries that require helium to create a protective inert atmosphere for fabrication.

Due to helium shortages in 2013, the US Congress passed the Helium Stewardship Act to help mitigate helium shortages and increase investment in private helium sources with the eventual disposal of government assets by 2021 that they believe will be completed this year.

Although helium is mainly obtained from natural gas, to justify the capital needed to establish and maintain the extraction facilities, the concentration of helium needs to be high enough and the refined helium also needs to have access to the infrastructure to reach the markets.

FIGURE 1: Helium uses driving demand

Privatization lifting prices

Helium is not traded on an exchange but agreements are negotiated between buyers and sellers. While historically the United States Federal Government exerted control over the supply and pricing, there has been a shift to privatization since the Helium Privatization Act of 1996, when the US Congress initiated a plan to deplete the Federal helium reserve.

With privatization, the market price for helium is ‘lifting’ higher and new suppliers are looking to benefit. Although helium prices can vary depending on the volume and timing of the transaction, it currently ranges from US$300 to US$500 per thousand cubic feet.

Public companies in the helium market

In North America, helium production is dominated by energy companies such as Exxon Mobil Corporation (NYSE: XOM), which has a large helium operation in the Riley Ridge fields in Wyoming.

However, pure-play helium producers have emerged in the past few years intending to take advantage of the privatization initiatives in the US and the increasing prices of helium. Here are a few companies to investigate.

Desert Mountain Energy Corp. (TSXV: DME)

Desert Mountain Energy is a Canadian-based resource company that explores and develops helium, hydrogen, and noble gas properties in the southwestern US.

With a primary focus on the Holbrook Basin Helium Project in Arizona, the company holds over 100,000 acres of land under lease in one of North America’s most prolific helium regions.

Last month, announced its recently completed C$23.1 million financing will allow it to finalize the required work to bring six helium wells into production and expects revenue for helium in this quarter.

Desert Mountain Energy is currently trading at C$1.13 with a market cap of C$102.0 million

Royal Helium Ltd. (TSXV: RHC)

Royal Helium is a Canadian company that explores and develops helium resources in southern Saskatchewan and southeastern Alberta, Canada.

It is one of the largest helium leaseholders in Canada, with over 1 million acres (over 404,000 hectares) of helium-potential land that is near existing helium-producing locations.

In February, Royal Helium announced its Steveville Helium Plant in Alberta was fully funded with C$17.5 million in credit facilities and C$5.5 million from a previous private placement of convertible debentures.

Royal Helium is currently trading at C$0.36 with a market cap of C$87.4 million

Avanti Helium Corp. (TSXV: AVN)

Avanti Helium is a gas exploration company that focuses on the exploration, development, and production of helium across western Canada and the United States.

Avanti is currently focused on its Greater Knappen helium project, covering 78,000 acres over an area extending from southern Alberta to northwest Montana.

In February, Avanti raised C$6.3 million to advance the project and also announced an updated resource estimate in March for the Sweetgrass Pool in the Greater Knappen project.

Earlier this month, the company secured land in Montana, which is expected to be the site of its Helium Recovery Unit (HRU), and is targeting to have the HRU in place and on stream before the end of the year.

Avanti is currently trading at C$0.55 with a market cap of C$42.4 million

Total Helium Ltd. (TSXV: TOH)

Total Helium resumed trading earlier this month following the acquisition of a joint venture interest in the Pinta South Helium Project in Arizona for US$12 million and funding a US$2 million capital development program on the project.

The Pinta South Helium Project is expected to provide the company with a stable source of helium revenue and growth from existing helium production as well as interest in exploration in the Holbrook Basin. A major industrial gas partner has already entered into a long-term contract to purchase the helium the project produces.

The joint venture consists of 10 existing wells, two of which are already producing helium and eight of which are being connected to a helium processing plant. The company will acquire a 20% interest in the two producing wells and a 50% interest in the eight additional wells.

The company also plans to drill and complete 10 more wells by the end of the second quarter this year, bringing the total number of producing wells to 20.

Total Helium is also engaged in a joint venture with an industrial gas partner to establish an underground helium storage facility in western Kansas.

Total Helium is currently trading at C$0.50 with a market cap of C$38.7 million.

Final thoughts

Helium’s critical applications in aerospace, biomedical, national security, and scientific fields make it an indispensable resource. However, the privatization shift in the US, along with increasing demand and rising prices, presents an enticing opportunity for investors in the emerging North American helium industry.

FIGURE 2: Helium Comp Table

The contrast media market is a large global market valued at $4.7 billion and is forecasted to grow at a CAGR of 7.7% through 2028. Contrast media are used in 189 million procedures annually.

Voyageur Pharmaceuticals Ltd. (TSXV: VM) is working to become the only fully integrated company in the radiographic contrast media business by developing barium and iodine contrast media. Voyageur owns a 100% interest in the Frances Creek Barium Project, suitable in grade for the pharmaceutical marketplace, with additional interests in a high-grade iodine, lithium & bromine brine project located in Utah, USA.

Voyageur will use barium from the Frances Creek Project and refine it to a barium product (SmoothX™) at their planned carbon-neutral pharmaceutical plant. Until the plan is completed they will rely on a third party. Voyageur has received Health Canada licenses for barium contrast media and has begun to produce and market products for Canada as they prepare to launch Canadian sales.

Voyageur’s Frances Creek is a Source of Barium and ULI is a Source of Iodine

Source: Voyageur company presentation

As announced early this month, Voyageur is preparing to launch its first product, SmoothX™ barium sulfate CT contrast media oral suspension for the CT imaging market in Canada. To advance sales in Canada, Voyageur has appointed a new Canadian Sales Manager, Ethan Mohan. Voyageur stated: “Ethan will be responsible for executing the Company’s sales program and has already begun meeting with Government Health Service agencies and private clinics across Canada.“

Health Canada licenses have already been approved for barium contrast media use in Canada. The next steps are the USA and international markets.

Voyageur continues to advance its applications with the U.S. Federal Drug Agency (“FDA”) for approvals to market barium contrast products in the USA. Voyageur states that they are “also advancing the development and testing of four additional imaging products and is moving forward positively as it relates to its first product application for approval from the FDA.“

Voyageur has a pipeline of 7 barium products and 3 iodine products all at various stages of approval, all of which aim to serve the West’s unmet need for contrast media products.

Voyageur Plans to Meet the West’s Demand for Non-Chinese Barium and Iodine Contrast Media

Source: Voyageur company presentation

Vertical integration strategy

Voyageur owns its own barium and iodine resource which means it can eliminate all middlemen in the supply chain to reduce overall costs. Once this strategy is accomplished, Voyageur aims to achieve the highest profit margin possible.

This is a prudent strategy but it just takes some time to fully develop it. In the meantime, Voyageur will use third parties where needed.

Voyageur Proposed Timeline: Barium and Iodine contrast media sales to expand globally using Voyageur’s integrated model by 2025-27

Source: Voyageur company presentation

Closing remarks

Voyageur recently raised approximately C$1.2 million in funds to be allocated toward the Company’s near-term goals. With Canadian sales just around the corner and potentially soon USA FDA approval, Voyageur looks set to sail in 2023.

Voyageur Pharmaceuticals trades with a market cap of C$13 million.

Barium and iodine-based radiographic contrast media (RCM) are types of RCM used in diagnostic imaging. Both work by attenuating X-rays to create clearer images of the body’s internal structures. Barium-based RCM is injested orally and used most often for gastrointestinal (GI) radiography and CT , while iodine-based RCM is injected and used primarily for gastrointestinal (GI) radiography and computed tomography (CT) and vascular radiography. These materials are critical for diagnostics and testing in the medical industry.

The Canadian radiology pharmaceutical industry is highly reliant on foreign suppliers, particularly in China. Geopolitical and supply chain issues can drive prices up significantly. Canada is vulnerable to disruptions in the Chinese supply chain. Moreover, quality control issues and intellectual property concerns have also been raised with respect to Chinese-made products.

As a result, the Canadian government has been working on a national strategy to de-couple from China for critical minerals and pharmaceuticals. In order to reduce reliance on foreign suppliers, the industry needs more low-cost producers. One of the companies that is working to reduce this reliance is Voyageur Pharmaceuticals Ltd. (TSXV: VM).

This company has recently hit a large milestone that will help the company achieve its long-term goals. They recently finished a production test batch of their barium contrast suspension for computed tomography imaging, known as SmoothX. This testing batch was completed with their contract manufacturer, who recently received their FDA site registration.

The production test batch is an essential milestone in the development of Voyageur’s barium contrast agent, which is being developed as a potential alternative to current products on the market. Barium contrast agents are used in CT scanning to improve the visibility of certain structures and tissues. The successful production of SmoothX opens up the possibility of commercialization in Canada.

Achieving commercial volumes is a key milestone for the company as it looks to establish itself as a major player in the radiology pharmaceutical industry. The company is excited about the potential of SmoothX and believes that it has the potential to be a best-in-class contrast agent. Voyageur is committed to bringing this important new product to market and will continue to invest in its development and commercialization.

The company also holds Health Canada-approved licenses for a total of five barium contrast media products. These licenses give it a great opportunity to expand in the Canadian market. The long-term goal is to develop a fully integrated supply chain for barium and iodine contrast media in Canada. The company has the scale and scope to achieve this. It has a strong product portfolio and a robust research and development pipeline. These capabilities will enable the company to meet the needs of the Canadian market and potentially create shareholder value.

FDA approval is one of the next steps for Voyageur to begin sales in the US. They are also working on building a GMP barium contrast plant to process barium sulfate that would be supplied from their own Frances Creek barium project. This capability would allow them to produce their own product instead of relying on a third party. By controlling all aspects of its carbon footprint, Voyageur will be able to offer a completely carbon-neutral product to its customers.

The company has a 100% controlling interest in three barium sulfate projects, including the Frances Creek property. The Frances Creek property is suitable in grade for the pharmaceutical barite marketplace. In addition, Voyageur has an interest in a high-grade iodine, lithium, and bromine brine project located in Utah. This capability enhances the company’s unique sourcing capability to create its products from its own mineral deposits.

Voyageur’s objective is to become a leading global provider of pharmaceutical barite and high-grade iodine products by leveraging its extensive knowledge of geology, mineral processing, and product formulation. The company plans to achieve this by expanding its production capacity to meet growing demand from the medical imaging industry and continue to explore and develop its portfolio of mineral projects.

In this InvestorIntel interview with host Tracy Weslosky, Voyageur Pharmaceuticals Ltd.‘s (TSXV: VM) President and CEO Brent Willis, discusses supply chain shortages of vital imaging contrast agents for the medical radiology marketplace

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here), Brent talks about how contrast agents are used in radiology to allow medical professionals to detect the disease and tumors inside the body, but scans are currently “being canceled across North America because the majority of iodinated contrast comes out of China,” and now “we cannot supply our own hospitals with very much needed drugs just based on a few port closures in China.”

Brent talks about Voyageur’s plans to build all the required infrastructure to become 100% self-sufficient with a processing plant and its ownership of three barium sulphate projects including its Frances Creek property, as well as its recent $1 million capital raise to be used to advance the roll out of Health Canada licensed products for sales in Canada.

To access the full InvestorIntel interview, click here

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About Voyageur Pharmaceuticals Ltd.

Voyageur is a Canadian public company listed on the TSXV under the trading symbol VM. Voyageur is focused on the development of barite and iodine Active Pharmaceutical Ingredients (“API”) and high-performance cost-effective imaging contrast agents for the medical radiology marketplace. Voyageur’s goal is to initially generate positive cash flow from operations using third party GMP pharmaceutical manufacturers in Canada and internationally. Ultimately, Voyageur has plans to build all the required infrastructure to become 100% self-sufficient with all manufacturing. Voyageur owns a 100% interest in three barium sulphate (barite) projects including the Frances Creek property, suitable in grade for the pharmaceutical barite marketplace, with interests in a high-grade iodine, lithium & bromine brine project located in Utah, USA.

Voyageur is moving forward with its business plan of becoming the only fully integrated company in the radiology medical field, by controlling all primary input costs under the motto of: “From the Earth to the Bottle”.

To learn more about Voyageur Pharmaceuticals Ltd., click here

Disclaimer: Voyageur Pharmaceuticals Ltd. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp. (IIC) does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

Last week, Perimeter Medical Imaging AI, Inc. (TSXV: PINK) announced that approximately 2.35 million warrants subject to an accelerated expiry were exercised, resulting in cash proceeds to the company of over C$4.7 million.

Inclusive of the C$4.7 million raised from the exercise of accelerated warrants noted above, Perimeter received over C$7.28 million from the accelerated warrant exercise and can expect a further C$0.68 million if the remaining warrants are exercised by March 8.

The company plans to use the proceeds in its commercialization and development plans to bring Perimeter’s medical imaging solution to the market in 2021. Perimeter’s direct clinical sales efforts include a limited market release of the platform this quarter with a broader commercial launch in the second quarter.

Perimeter’s OTIS™ Platform

Perimeter is a medical technology company utilizing ultra-high-resolution, real-time, advanced imaging tools in cancer surgeries to improve patient outcomes and reduce costs in the healthcare system.

Perimeter’s OTIS™ platform, cleared by the FDA as an imaging tool, is a system that provides surgeons, radiologists, and pathologists with ultra-high-resolution, sub-surface image volumes to allow clinicians to visualize microscopic tissue structures during a clinical procedure.

The Problem Being Solved

According to Dr. Alastair Thompson, MD, a surgical oncologist and professor at Baylor, “One of the big problems in breast cancer surgery is that in about one in four women on whom we do a lumpectomy to remove cancer, we fail to get clear margins.”

Therefore doctors are searching for an effective and user-friendly tool to help identify that the breast cancer has been removed from a woman’s breast.

Baylor is one of many institutions that is conducting a study with Perimeter’s medical imaging system for providing real-time, high-resolution images of the removed tissues to assist cancer surgeons in making better decisions during operations.

Hospitals see this type of system could lead to a large improvement in patient care and reduce the need for second surgeries.

Atlas AI Project – Artificial Intelligence (AI) / Machine Learning (ML) Tools

In addition, Perimeter is advancing its advanced AI/ML image assessment tools through clinical development through its Atlas AI project.

Backed by a $7.4 million grant awarded by the Cancer Prevention and Research Institute of Texas (CPRIT), a leading state body that funds cancer research, the project will collect images of breast tumors from up to 400 patients for the purpose of training and testing Perimeter’s “ImgAssist” AI technology to increase the efficiency of image review.

AI and analytics are seen as a way to address the inefficiencies and challenges that current operating rooms are facing in identifying cancerous tissues. According to the company, currently 1 in 4 patients who receive a lumpectomy has to come back for a second operation because the surgeon did not remove all of the cancer cells.

Focus on Breast Cancer but Applications Beyond

Cancer continues to grow amongst the population and puts a burden on the healthcare system. According to the World Cancer Research Fund, breast cancer is the most common cancer in women worldwide, representing about 25 percent of all cancers in women.

In 2021, Breastcancer.org estimates that over 330,000 new cases of breast cancer are expected to be diagnosed in the United States and over 43,000 women are expected to die from breast cancer.

While currently focusing on deployments targeting breast cancer centers, OTIS™ has applications beyond breast cancer and into the larger multi-billion-dollar cancer surgery market.

Final Thoughts

According to a recent industry report from Markets and Markets, the Surgical Imaging Market is projected to grow from US$1.8 billion in 2020 and reach US$2.4 billion by 2025, growing by 6.3% annually.

One of the major factors driving the growth of this market includes the increasing demand for minimally invasive procedures that Perimeter’s platform addresses.

With the commercial launch of the product scheduled for this year, Perimeter has the potential to benefit from this growing market.

SOURCE:

Any technology that can help us beat cancer is most welcome. One company is developing a revolutionary way for surgeons to better assess if they have removed all the cancer, all while still in the operating room. This same company was recently recognized as one of the “10 most promising companies” at the Texas Life Science Forum.

The company is Perimeter Medical Imaging AI, Inc. (TSXV: PINK) (‘Perimeter’). The AI in their name refers to the fact that they use Artificial Intelligence (AI) in addition to their imaging technology. A combination of imaging and AI helps surgeons identify if cancer is still present post-tumor removal surgery by examining the ‘perimeter’ of the excised area, hence the company name.

Perimeter’s goal as a medical technology company is to transform cancer surgery with advanced, real-time, ultra-high-resolution imaging tools to address areas of high unmet medical need. Perimeter’s OTIS™ platform is an FDA-cleared point-of-care imaging system that provides clinicians with real-time, ultra-high-resolution, sub-surface image volumes of the margin (1-2 mm below the surface) of an excised tissue specimen.

Perimeter’s OTIS™ (Optical Tissue Imaging System) is FDA cleared point-of-care imaging system for use in real time clinical procedures

Source

Cancer left behind after surgery is a significant problem

As we all know cancer surgery does not always get all the cancer. For example, breast lumpectomy surgeries currently face 25% re-operation rates. This is not ideal for the patient and it is not ideal for the health care system. Re-operating costs are, on average, $16,000 to cover the additional hospital cost per patient, which when added up, amounts to an additional $560 million annual cost to the U.S. healthcare system.

The best solution for all parties is to be able to do point-of-care real time imaging using Perimeter’s Optical Tissue Imaging System (OTIS) taking only 10 minutes to do. By contrast the current standard way is to send off a post-operative histology tissue sample for assessment, which takes 2 to 7 days. Now that’s a potential disruption right there.

Perimeter’s commercialization strategy

Perimeter currently uses their OTIS device in limited markets but have plans to expand, with an initial focus in the US on post surgery breast cancer imaging. According to Perimeter (and WHO projections) the total addressable market across all areas for Perimeter is US$3.7 billion.

Source

To get a feel for the initial ‘revenue potential’ just from targeting US breast cancer lumpectomy cases only, Perimeter prepared the slide below. It shows based on a mid case scenario of 500 hospitals doing 3 imaging procedures per week at $750 each, perimeter’s potential revenue could reach $56.3 million pa of recurring revenue. This is just theoretical at this stage, but shows the potential revenues from just one type of post cancer surgery (post breast cancer lumpectomy). In time Perimeter would aim to expand to many types of cancer post surgery imaging.

Perimeter’s ‘target potential’ revenue only from breast lumpectomy post-surgery imaging

Source

Perimeter’s Q3 2020 financial results were reported here.

Closing remarks

Perimeter Medical Imaging AI is potentially disrupting post cancer surgery imaging with a goal to help save lives, costs, and time. Perimeter’s OTIS™ is already FDA cleared; however there is still some further next stage product development ongoing in the area of training the computer (AI training), as well as further studies. Perimeter is targeting a limited market release in Q1 2021 and a broader commercial launch in Q2 2021.

Perimeter’s board and management team are extremely experienced and highly credentialed. The company is rapidly gaining recognition and now has a market cap of C$87 million after only listing on the TSX-V in mid 2020. It is certainly looking like 2021 will be a breakthrough year for Perimeter Medical Imaging AI. Stay tuned.

Disclosure: The author is long Perimeter Medical Imaging AI, Inc. (TSXV: PINK)