MDS Nordion Provides Update on AECL's Medical Isotope Supply Disruption
19 Maggio 2009 - 8:51PM
PR Newswire (US)
OTTAWA, May 19 /PRNewswire-FirstCall/ -- MDS Nordion, a leading
provider of medical isotopes and radiopharmaceuticals, has received
information from its primary supplier, Atomic Energy of Canada
Limited (AECL), regarding an interruption in the supply of medical
isotopes, primarily molybdenum-99 (Mo-99) used in the manufacturing
of technetium-99m generators. AECL has advised MDS Nordion that
they anticipate the National Research Universal reactor (NRU) will
remain out of service for more than one month. According to a press
release issued by AECL on May 18, 2009, the shutdown is a result of
a heavy water leak that has been identified at the base of the
reactor vessel. AECL has indicated that repair options are
currently under consideration. MDS Nordion expects the impact of
this shutdown to begin to be felt this week. The NRU produces
approximately 30%-40% of the world's medical isotopes and
approximately 50% of those used in North America, and is one of
only four reactors in the world with the capacity to produce
significant commercial quantities. While MDS Nordion is working
closely with its supply network to source additional isotopes,
based on AECL's information and global supply capability, the
Company expects that the medical community and their patients will
experience a significant shortage of isotopes worldwide. MDS
Nordion recognizes the important role medical isotopes play in the
diagnosis and treatment of life-threatening conditions such as
heart disease and cancer. The Company continues to work to secure a
reliable, long-term supply of medical isotopes. In 1996, MDS
Nordion contracted for AECL to complete and commission the MAPLE
reactors, which were meant to replace the NRU. This project was
unilaterally discontinued in May 2008 by the federal government and
AECL. MDS Inc.'s investment in the MAPLE project was approximately
US$350 million. MDS believes that the completion of the MAPLE
project is the best alternative to provide long-term global isotope
supply. In addition to MAPLE, MDS Nordion is examining longer-term
supply alternatives. One such program is MDS Nordion's recently
announced collaboration with TRIUMF, Canada's national laboratory
for particle and nuclear physics, to study the feasibility of
producing a viable and reliable supply of photo fission-based
Mo-99. Based on this latest update from AECL, MDS Inc. expects the
financial impact of this extended interruption to reduce MDS
Nordion's adjusted EBITDA by approximately US$4 million per month.
More Information Additional background pertaining to today's
announcement can be found on MDS Inc.'s Website at
http://www.mdsinc.com/for_media/electronic_media_kit.asp About MDS
Nordion MDS Nordion, a business unit of MDS Inc., is a global
leader in providing medical isotopes for molecular and diagnostic
imaging, radiotherapeutics and sterilization technologies for
medical products that benefit the lives of millions of people in
more than 50 countries around the world. MDS Nordion products and
services are used on a daily basis by pharmaceutical and
biotechnology companies, medical-device manufacturers, hospitals,
clinics and research laboratories. Find out more at
http://www.mdsnordion.com/ About MDS MDS Inc. (TSX: MDS; NYSE: MDZ)
is a global life sciences company that provides market-leading
products and services that our customers need for the development
of drugs, and the diagnosis and treatment of disease. We are a
leading global provider of pharmaceutical contract research,
medical isotopes for molecular imaging, radiotherapeutics, and
analytical instruments. MDS has more than 5,000 highly skilled
people in 29 countries. Find out more at http://www.mdsinc.com/ or
by calling 1-888-MDS-7222, 24 hours a day. Forward-Looking
Statements This document contains forward-looking statements. Some
forward-looking statements may be identified by words like
"expects", "anticipates", "plans", "intends", "indicates",
"targeted" or similar expressions. The statements are not a
guarantee of future impact or performance and are inherently
subject to risks and uncertainties. The actual impact to the
Company of the maintenance shutdown could differ materially from
that currently anticipated due to a number of factors, including,
the actual timing of a return to full production and other risk
factors identified in other documents filed by the Company with
Canadian and U.S. securities regulatory authorities from time to
time. DATASOURCE: MDS Nordion CONTACT: MEDIA: Shelley Maclean,
(613) 592-3400, ext. 2414, ; INVESTORS: Kim Lee, (416) 213-4721,
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