OTTAWA, Ontario--(BUSINESS WIRE)--Jan. 21, 2013--
Nordion Inc. (TSX: NDN) (NYSE: NDZ), a leading provider of products and
services to the global health science market, has filed an amended
statement of claim against Atomic Energy of Canada Limited (AECL) in the
Ontario Superior Court of Justice with regards to the Isotope Production
Facilities Agreement (IPFA). The claim requests damages in the amount of
$243.5 million for negligence and breach of the IPFA, as well as pre-
and post-judgment interest and costs.
Nordion and AECL entered into the IPFA on December 31, 1996. The IPFA
was entered into to resolve litigation arising from AECL’s aborted MAPLE
X10 project, which was intended to replace the National Universal
Research (NRU) reactor. The IPFA contained provisions for the
engineering, procurement, construction and commissioning of the
Dedicated Isotope Facilities and provisions for the supply of and
payment for radioisotopes, pending the completion of the new facility
and once produced by the new facilities.
In 2008, Nordion filed an initial court claim against AECL and the
Government of Canada for negligence and breach of the IPFA in the amount
of $1.6 billion, as well as a separate claim in an arbitration under the
Interim and Long Term Supply Agreement (ILTSA) which replaced the IPFA
in 2006. The majority of the arbitration tribunal ruled 2:1 that
Nordion's claim against AECL in the arbitration was precluded under the
terms of the ILTSA. Although Nordion was not entitled to a remedy under
the ILTSA for the unilateral termination by AECL of the construction of
the MAPLE facilities, the arbitration decision left it open to Nordion
to pursue the IPFA court claim which was preserved under the ILTSA.
Having regard to the majority opinion in the arbitration, the amended
statement of claim under the IPFA no longer includes the Government of
Canada and the damages claimed are substantially lower. Nordion and the
Government of Canada have agreed to the discontinuance of the action
against the Government of Canada without costs.
The amended statement of claim under the IPFA seeks damages against AECL
for negligence and breaches of the IPFA, among other things, during
design and in construction supervision and quality assurance. The
damages claimed are for the recovery of Nordion’s costs up to the end of
the IPFA, net of certain amounts settled between Nordion and AECL at the
time of entering into the ILTSA.
The parties have agreed on a preliminary schedule for proceeding in the
IPFA claim that provides for the filing of the amended statement of
claim by Nordion at this time. The schedule then provides for AECL to
file motions if it sees fit and to file a defence. Documentary
productions and discoveries are currently anticipated to begin during
2013. Based on the current schedule, the matter would not be expected to
be set down for trial before mid-2014.
Nordion legal costs associated with MAPLE arbitration cost determination
and the pursuit of the IPFA lawsuit against AECL currently are expected
to be approximately $2 million in fiscal 2013.
About Nordion Inc.
Nordion Inc. (TSX: NDN) (NYSE: NDZ) is a
global health science company that provides market-leading products used
for the prevention, diagnosis and treatment of disease. We are a leading
provider of targeted therapies, sterilization technologies, and medical
isotopes that benefit the lives of millions of people in more than 60
countries around the world. Our products are used daily by
pharmaceutical and biotechnology companies, medical-device
manufacturers, hospitals, clinics and research laboratories. Nordion has
approximately 500 highly skilled employees worldwide. Find out more at www.nordion.com
and follow us at http://twitter.com/NordionInc.
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 2011 available on SEDAR at www.sedar.com
and on EDGAR on www.sec.gov.
Source: Nordion Inc.
Nordion Inc.
INVESTORS:
Ana Raman,(613) 595-4580
investor.relations@nordion.com
or
MEDIA:
Tamra
Benjamin,(613) 592-3400 x 1022
tamra.benjamin@nordion.com
