OTTAWA, Ontario--(BUSINESS WIRE)--Mar. 21, 2013--
Nordion Inc. (TSX: NDN) (NYSE: NDZ), a leading provider of products and
services to the global health science market, has settled claims filed
against Nordion by Dr. Reddy’s Laboratories Ltd. and certain affiliated
companies (“Dr. Reddy’s”). Details of the settlement are confidential.
During fiscal 2009, Nordion was served with a Complaint from Dr. Reddy’s
related to repeat study and mitigation costs of $10 million and lost
profits of $70 million. This legal action, commenced by Dr. Reddy’s in
New Jersey, related to certain bioequivalence studies carried out by the
former MDS Pharma Services business unit from January 1, 2000 to
December 31, 2004.
The settlement is expected to result in a loss of US$1.4 million for the
Company after taking into account financial reserves maintained by the
Company in relation to the claim. The settlement, most of which is
covered by insurance, will result in a net cash outflow of US$17 million
that includes insurance proceeds received to date. Nordion intends to
report these items in its quarterly reporting for its second fiscal
quarter of 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.
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 2012 available on SEDAR at www.sedar.com
and on EDGAR on www.sec.gov.
Source: Nordion Inc.
Tamra Benjamin, (613)
592-3400 x. 1022
Raman, (613) 595-4580