Nordion and Dr. Reddy’s Laboratories Settle Claims
OTTAWA, Ontario -- March 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.
Tamra Benjamin, (613) 592-3400 x. 1022
Ana Raman, (613) 595-4580
Press spacebar to pause and continue. Press esc to stop.