Cyclopharm (ASX: CYC) has entered into an Interim Agreement (IA) to supply the Veterans Health Administration (VA), the largest integrated US Government health care system in the United States (US), for the pharmaceutical and consumable components of Technegas.
The Interim Agreement immediately provides the 120 Veterans Affairs hospitals, which have nuclear medicine departments, access to an agreed contract for these products.
This IA, which Cyclopharm has negotiated directly with the US Department of Veteran Affairs, is the first step to Technegas’ inclusion on the broader US Federal Supply Schedule (FSS). The FSS is the simplified procurement service for US federal agencies to obtain products across the entire US Government system, including the Department of Defense (DoD), Veterans Administration (VA), and Public Health Service (PHS) hospitals.
“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,” Cyclopharm CEO, James McBrayer, said.
“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.”
In parallel with the IA covering the pharmaceutical component agreement, Cyclopharm is also progressing with the necessary registrations to include the Technegas System, the medical device component of Technegas, in the same streamlined process.
In relation to the patients linked to this agreement, Technegas’ ability to provide highly accurate functional ventilation images is a key diagnostic aid for conditions such as chronic obstructive pulmonary disease (COPD) and pulmonary fibrosis, a condition affecting veterans impacted by toxic exposures during active service. By improving diagnostic accuracy, Technegas will aid in the VA’s effective treatment and management of lung disease in affected veterans, enhancing care under the PACT Act1.
Cyclopharm has also revealed it has received its first purchase order for Technegas from a Department of Defense (DoD) hospital. While DoD facilities will be covered under the upcoming FSS agreement, the company has in parallel been progressing Technegas implementation at individual sites across the VA, DoD and PHS networks.
As a result of this agreement with the VA and receipt of its first purchase order from the DoD, initial installations at VA, DoD and PHS sites are anticipated to commence in the first half of 2025, representing another key revenue deliverable in Cyclopharm's US strategy.
