Cyclopharm secures major US Department of Defense contract for Technegas supply

Cyclopharm Limited, the Australian-based radiopharmaceutical company, has taken a significant step in its US expansion efforts by signing an agreement with the United States Department of Veterans Affairs (VA) and receiving its first order from the US Department of Defense (DoD). This deal marks a pivotal moment for Cyclopharm as it continues to roll out its flagship product, Technegas, across the largest nuclear medicine market in the world.

The Interim Agreement with the Veterans Health Administration (VHA), the largest integrated US Government healthcare system, now enables 120 Veterans Affairs hospitals to access the essential Technegas technology. The contract is part of Cyclopharm’s strategy to streamline US Federal Government procurement, making it easier for federal agencies such as the VA, DoD, and Public Health Service hospitals to purchase medical supplies efficiently.

Cyclopharm’s Technegas has long been recognized for its ability to provide highly accurate functional lung ventilation images, aiding in the diagnosis and treatment of respiratory conditions such as chronic obstructive pulmonary disease (COPD) and pulmonary fibrosis. These conditions often impact veterans who have been exposed to toxic substances during active service. As a result of this contract, veterans will have access to cutting-edge diagnostic tools that will significantly enhance their care and treatment under the PACT Act, which extends health care eligibility to veterans with toxic exposures.

Cyclopharm CEO James McBrayer emphasized the importance of this agreement, noting that it will bypass the complex network of individual procurement offices, expediting the deployment of Technegas to federal healthcare institutions. McBrayer further highlighted that this deal will bring the company closer to its customers, enhancing patient care and ultimately improving outcomes for veterans suffering from lung disease. The direct relationship with the VA is a testament to the progress Cyclopharm is making as it continues to gain traction in the US market.

While this is an interim agreement, Cyclopharm is already making strides toward a more comprehensive deal under the Federal Supply Schedule (FSS), which is the procurement system used across all federal agencies. The company is also pursuing further registrations to include the Technegas System in the FSS for seamless integration into hospitals across multiple federal health networks.

As part of this agreement, Cyclopharm received its first purchase order for Technegas from a DoD hospital, marking the beginning of what is expected to be an extensive rollout of the product across the VA, DoD, and Public Health Service (PHS) hospitals. Initial installations of Technegas systems are expected to begin in early 2025, representing a significant revenue milestone for Cyclopharm.

Expert opinion: Why this deal matters for veterans and the US healthcare system

Respiratory medicine experts have highlighted the transformative potential of Technegas in improving diagnostic accuracy for veterans suffering from chronic respiratory conditions. By providing clear and functional ventilation images, Technegas enables doctors to detect lung diseases at earlier stages, allowing for more effective interventions. This technology is especially crucial for veterans, who may have been exposed to harmful substances during their military service.

Analysts following Cyclopharm’s expansion into the US see this agreement as a key step toward solidifying the company’s presence in the competitive US healthcare market. Given the significant healthcare needs of veterans, particularly those impacted by toxic exposures, this contract not only benefits Cyclopharm but also aligns with national priorities to improve veteran care under legislative measures like the PACT Act.

What the future holds for Cyclopharm and Technegas in the US

With the Interim Agreement secured and the first purchase order from the DoD in hand, Cyclopharm is poised to expand its reach within the US. This contract is expected to lay the foundation for further growth as the company continues its efforts to get Technegas included in the Federal Supply Schedule. Additionally, Cyclopharm is exploring new applications for Technegas in respiratory diseases, such as asthma, pulmonary hypertension, and even Long COVID, which could open even more doors for the company in the future.

This agreement signifies a new era for Cyclopharm, as it brings innovative medical solutions to the forefront of veteran healthcare in the US. Veterans and active service members alike will benefit from access to advanced diagnostic tools, potentially improving outcomes for thousands of patients across the country.