Name Change
Shareholders of MDS Inc. have approved a change of name from MDS Inc. to Nordion Inc. The company anticipates that the name change will be finalized in Q4 2010. As such, you will see references to both MDS Inc. and MDS Nordion on this website.
Strategic Repositioning: Frequently Asked Questions
This page was last updated on April 27, 2010
- Why did MDS decide to sell MDS Analytical Technologies and MDS Pharma Services?
- What approvals were required to complete the sale of MDS Analytical Technologies?
- Why did you need a shareholder vote?
- When did the sale of MDS Analytical Technologies to Danaher close?
- When did the divestiture of MDS Pharma Services close?
- Besides processing reactor-based isotopes when the NRU is operational, what does Nordion do?
- What did MDS do with the proceeds from the sale of MDS Analytical Technologies?
1. Why did MDS decide to sell MDS Analytical Technologies and MDS Pharma Services?
These decisions followed a comprehensive strategic review by a Special Committee of independent Directors working with Management and financial and legal advisors. The MDS Inc. Board of Directors believed these actions were in the best interests of the Company and its shareholders. The Board believed the proposed path forward provides the greatest opportunity to unlock the value of MDS businesses in the near-term.
2. What approvals were required to complete the sale of MDS Analytical Technologies?
The completion of the sale was subject to shareholder and regulatory approvals, and other closing conditions.
3. Why did you need a shareholder vote?
A shareholder vote was necessary under the Canada Business Corprorations Act to which MDS is subject when a company sells all, or substantially all, of its assets. The sale of MDS Analytical Technologies was considered a sale of substantially all of MDS's assets. The MDS Board of Directors unanimously recommended that shareholders vote in favour of the sale. The sale was approved by in excess of 99% of the votes cast at the meeting.
4. When did the sale of MDS Analytical Technologies to Danaher Corporation close?
The close of the sale of MDS Analytical Technologies to Danaher was announced on February 1, 2010.
5. When did the divestiture of MDS Pharma Services close?
The divestiture of MDS Pharma Services was announced on February 10, 2010 and closed on March 8, 2010.
6. Besides processing reactor-based isotopes when the NRU is operational, what does MDS Nordion do?
MDS Nordion is the partner of choice for biotechnology and pharmaceutical companies, providing integrated molecular imaging services and technologies for drug discovery and development. The business unit is a global leader in the supply of Cobalt-60, which is used to sterilize medical products to prevent infection and the spread of disease. MDS Nordion's products and services are integral to the commercialization of the only two United States Food and Drug Administration-approved radioimmunotherapeutics for the treatment of non-Hodgkin's lymphoma.
7. What did MDS do with the proceeds from the sale of MDS Analytical Technologies?
MDS returned $450 million of the sale proceeds to shareholders by way of a share buyback through a Substantial Issuer Bid.
MDS also retired all outstanding senior unsecured notes and intends to complete the payment of the transaction and restructuring costs, as well as fund ongoing operations of the remaining business.