OTTAWA, Jan. 5 /CNW/ - Nordion Inc., a leading provider of products and
services to the global health science market, today announced it has
extended its contract with its primary customer, Lantheus Medical
Imaging, Inc. for the supply of Molybdenum-99 (Mo-99).
"Dynamics have changed in the medical isotope market. Customers have
diversified their supply sources to reduce their reliance on single
source supply during extended shortages, such as recently experienced,"
said Steve West, Chief Executive Officer, Nordion. "The extension of
this contract with Lantheus provides us with a three year demand
projection while market activities settle and requirements level out."
Under the terms of the amended agreement, the contract has been extended
until December 31, 2013. The original contract was in place until July
31, 2011. Based on the contract, Nordion expects to supply Mo-99 on a
weekly basis to Lantheus Medical Imaging, Inc. After 2012, the contract
provides for potential changes in pricing and volume commitments in the
event of possible changes in the market.
"Lantheus is a leader in securing and supplying Mo-99 for the nuclear
medicine community," stated Don Kiepert, President and Chief Executive
Officer, Lantheus Medical Imaging, Inc. "The extension of our
agreement with Nordion is part of our ongoing commitment to implement a
globally diversified and balanced supply chain for the sourcing of
Mo-99. We look forward to continuing to work closely with our supply
partners such as Nordion to ensure continued access to Mo-99. "
Medical Isotope Update
Since the restart of the National Research Universal (NRU) reactor in
August 2010, the market for Mo-99 has been dynamic. Prior to the
shutdown of the NRU reactor in May 2009, NRU supplied medical isotopes
contributed approximately US$4 million per month of operating income.
Based on the past quarter activity and this current agreement with
Lantheus Medical Imaging, Inc., which reflect lower demand and higher
pricing for Mo-99 than in 2009, the Company expects the operating
income contribution from NRU supplied medical isotopes to initially be
in a similar range of US$4 million per month. Given current schedules,
Nordion also expects a negative impact on the profitability of this
business in the second half of fiscal 2011 due to the planned shut down
of the NRU reactor for inspections and the higher cost of Mo-99 back-up
supply from Isotope in Russia. Nordion intends to provide a further
update on the Mo-99 market with its fiscal 2010 fourth quarter and
annual reporting, which the Company plans to file on January 20, 2011.
About Nordion Inc.
Nordion Inc. (TSX: NDN; NYSE: NDZ) is a global health science company
that provides market-leading products and services used for the
prevention, diagnosis and treatment of disease. We are a leading
provider of innovative technologies for use in medical imaging and
radiotherapeutics, and sterilization technologies benefiting the lives
of millions of people in more than 60 countries around the world. Our
products and services are used daily by pharmaceutical and
biotechnology companies, medical-device manufacturers, hospitals,
clinics and research laboratories. Nordion has more than 600 highly
skilled employees in four locations. Find out more at www.nordion.com.
Forward Looking Statements
Certain statements contained in this news release constitute
"forward-looking statements". These statements are based on current
beliefs and assumptions of management, however are subject to known and
unknown risks, uncertainties and other factors that may cause actual
results to differ materially from the forward-looking statements in
this news release. For additional information with respect to certain
of these beliefs, assumptions, risks and uncertainties, please refer to
Nordion's Annual Information Form for fiscal 2009 available on SEDAR at
www.sedar.com and on EDGAR on www.sec.gov.
SOURCE Nordion Inc.
For further information:
(613) 592-3400 x. 2414