Cyclopharm's Agreement with US Government

Cyclopharm Limited (ASX:CYC) has signed an Interim Agreement (IA) to supply the Veterans Health Administration (VA) in the United States with the pharmaceutical and consumable components of Technegas. This agreement provides immediate access to an agreed contract for these products for 120 Veterans Affairs hospitals with nuclear medicine departments.

Cyclopharm CEO's Perspective

Securing this Interim Agreement is critical for streamlining the United States Federal Government procurement process. This agreement bypasses the need for Cyclopharm to negotiate separate contracts with each of the 20 Regional Procurement Offices within the VA or potentially follow a reseller pathway that would delay the deployment of Technegas, distance us from our customers and impact margins beyond the legislated discounts required for federal contracts. Throughout this process, we have leveraged our commercial experience and success in the 65 other countries where Technegas is the preferred agent of choice. In these markets, complementary and evolving technologies are continually expanding Technegas' indications for use in respiratory medicine. This direct VA agreement is evidence of the traction we continue to gain in the US, which is largest nuclear medicine market globally.

Cyclopharm's Outlook

Cyclopharm's agreement with the US Veterans Administration marks a significant milestone in the company's US strategy, with anticipated installations at VA, Department of Defense (DoD), and Public Health Service (PHS) sites expected to commence in the first half of 2025. This agreement not only streamlines the procurement process but also enhances the company's presence in the largest nuclear medicine market globally. The inclusion of Technegas on the broader US Federal Supply Schedule (FSS) is a key step, and the company is also progressing with the necessary registrations to include the Technegas System, the medical device component of Technegas, in the same streamlined process. The ability of Technegas to provide highly accurate functional ventilation images is expected to aid in the effective treatment and management of lung disease in affected veterans, aligning with the company's mission to improve patient care outcomes.