Cyclopharm (ASX:CYC) has announced it has entered into an interim agreement to supply the Veterans Health Administration, the most extensive integrated government healthcare system in the US, with the pharmaceutical and consumable components of Technegas.
Technegas provides accurate functional ventilation images. It is a diagnostic aid for chronic obstructive pulmonary disease and pulmonary fibrosis conditions.
The agreement immediately allows the 120 Veterans Affairs hospitals with nuclear medicine departments to access an agreed-upon contract for these products.
Cyclopharm negotiated the agreement directly with the US Department of Veteran Affairs. It 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, Veterans Administration, and Public Health Service hospitals.
Cyclopharm CEO James McBrayer said, “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 also announced it would receive its first purchase order for Technegas from a US Department of Defense hospital.