Aug 20 Canada's Nordion Inc, a medical
isotope provider, said it settled a five-year-old lawsuit with
its main supplier, Atomic Energy of Canada Ltd (AECL), and would
receive C$15 million in settlement of its C$244 million claim.
Nordion has struggled to find an alternative supplier for
molybdenum-99, the isotope at the center of the dispute. The
company processes the isotope to produce radioactive tracers
used in medical imaging.
The two parties also signed an agreement under which the
state-owned nuclear energy firm would supply Nordion with the
isotope starting immediately and running through October 2016.
Nordion had hoped to compel AECL to pay damages or complete
two new reactors that were set to replace the aging National
Research Universal reactor in Chalk River, Ontario, which
supplied the isotope.
However the project was scrapped in 2008 before construction
could finish and Nordion filed a lawsuit claiming C$1.6 billion
Nordion said on Tuesday AECL has released its claim of about
C$47 million for arbitration costs.
An arbitration panel had rejected Nordion's claim for
damages last September after which it suspend its dividend. In
January, the company said it was exploring strategic
Nordion's shares closed at C$7.70 Monday on the Toronto
Stock Exchange. The stock has risen about 19 percent so far this