MDS Nordion secures exclusive Mo-99 supply through framework
agreement
OTTAWA, Sept. 23
/PRNewswire-FirstCall/ - MDS Nordion, a leading provider of
products and services to the global health science market, today
announced it has entered into a framework agreement with The Open
Joint Stock Company "Isotope" (Isotope), the authorized subsidiary
of Rosatom State Corporation, to explore and define areas of
collaboration in the field of supply, marketing and sale of
isotopes produced in Russia.
This framework agreement is intended to facilitate the
collaboration and build the business relationship between MDS
Nordion and Isotope. The collaboration may result in the creation
of joint ventures, supply agreements or other mutually beneficial
supply arrangements, in order to efficiently sell isotopes outside
of Russia. The agreement extends
over an initial 10 year period.
"MDS Nordion is our preferred partner for the international
sales and marketing of Mo-99 and all other isotopes of mutual
interest," said Andrey Silkin,
General Director, Isotope. "As part of this framework agreement,
Isotope and MDS Nordion will explore further joint venture
opportunities in the nuclear industry arena."
As an important collaborative initiative under the umbrella of
this framework agreement, MDS Nordion has entered into a supply
agreement with Isotope for a supplemental supply of Molybdenum-99
(Mo-99) until 2020.
Under the terms of the supply agreement, Isotope will supply
Mo-99 to MDS Nordion on an exclusive basis for processing,
distribution and sale outside of the Russian Federation. The supply agreement
provides MDS Nordion with a new source of Mo-99 for its customer
base and strengthens its global supply chain by providing
additional supply to help offset the impact of the planned
shutdowns of Atomic Energy of Canada Limited's National Research
Universal reactor.
"As part of the economical and technological development
activities of the Russian
Federation, the project for the manufacturing and supply of
Mo-99 was initiated," said Evgeny
Evstratov, Deputy General Director, Rosatom. "Isotope, with
the support of Rosatom, will be the commercial structure to develop
this project becoming one of the largest Mo-99 manufacturers in the
world."
The Russian Federation Government and Rosatom State Corporation
have invested in both new and existing infrastructure in order to
bring on this new Mo-99 capacity. Initial quantities of supply will
be incremental. However, over several years the expectation is to
have supply available of up to 20 per cent of global Mo-99 demand
to back up MDS Nordion's long term requirements. Receipt of supply
from Isotope is expected to commence in the first half of fiscal
2011.
"This new supply agreement is important as it comes at a time
when our customers, and in turn the nuclear medicine community, are
looking for greater stability and long term reliability in their
supply network.," says Steve West,
CEO, MDS Inc. "We look forward to contributing to an improved
global supply chain and securing a supplemental supply source for
medical imaging."
Medical isotopes are used by physicians to better diagnose and
treat a number of diseases, including cardiac and neurological
conditions, and several types of cancer. Mo-99, and more
specifically the derivative medical isotope technetium-99m, is
utilized in approximately 80 per cent of nuclear medical procedures
worldwide.
About MDS Inc.
MDS Inc. (TSX: MDS; NYSE: MDZ) 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 65
countries around the world. Our products and services are used
daily by pharmaceutical and biotechnology companies, medical-device
manufacturers, hospitals, clinics and research laboratories. MDS
has more than 600 highly skilled people in five locations. Find out
more at www.mdsnordion.com.
SOURCE: MDS
SOURCE MDS Inc.
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