* Third-quarter EPS $2.91 vs $0.20 a year earlier
* Total revenue rises 7 pct
Sept 5 Nordion Inc, a provider of
isotopes used in medical imaging, reported a big jump in
quarterly profit on Thursday after recording an after-tax gain
of about $182 million on the sale of its targeted therapies
The Canadian company's results beat market expectations and
its shares climbed 1.8 percent to C$8.39 on the Toronto Stock
Nordion completed the $200-million sale of its targeted
therapies division to British health care company BTG Plc
in July. The business's sole product was the liver
cancer therapy TheraSphere.
Nordion Chief Executive Steve West said the company will
retain the net cash proceeds of $190 million from the sale. He
said the company had rejected distributing the cash to
shareholders because of the tax implications. Nordion is also
awaiting the completion a strategic review of its operations,
which might set spending priorities.
West said Nordion has no current plans for the cash, after
analysts asked on a conference call if the strategic review
could result in acquisitions.
Net profit rose to $180.4 million, or $2.91 per share, in
the company's third quarter from $12.3 million, or 20 cents per
share, a year earlier.
On an adjusted basis, Nordion's profit fell 19 percent to
$12.6 million, or 20 cents per share, in the quarter.
Revenue rose 7 percent to $71.7 million.
Analysts were expecting Nordion to earn 18 cents a
share, on revenue of $61.1 million, according to Thomson Reuters
Nordion is one of the world's leading producers of
molybdenum-99, used in medical imaging, and also designs and
constructs commercial gamma sterilization systems.
It is a leading supplier of cobalt-60, the isotope that
produces gamma radiation used to destroy harmful micro
Revenue at the company's sterilization technologies business
increased 14 percent, while it rose 9 percent at the medical
For raw material for its isotopes, the company depends on an
aging nuclear reactor operated by state-owned Atomic Energy of
Canada Ltd (AECL) in Chalk River, Ontario.
Nordion said in August it had settled a five-year-old
lawsuit with AECL, receiving C$15 million in settlement of its
C$244 million claim.
That settlement opens the door for Nordion to discuss
agreements with alternative isotope suppliers once its deal with
AECL expires in 2016, West said.
"If you're married, and you're going through an ugly
divorce, there aren't many people who want to date you," he
said. "We've finalized the settlement terms and now we're open