Nordion Reports Strategic Realignment of the Company

The plan includes transitioning Nordion to a business unit model with two distinct business units: targeted therapies and specialty isotopes, each of which will be supported by centralized corporate functions. The specialty isotopes business will include two segments: sterilization technologies and medical isotopes.

The company also announced the appointment of Jeff Brown, chief executive officer and founding member of Brown Equity Partners, LLC (Corona Del Mar, CA, USA), to its board of directors.

“The strategic realignment is designed to take into account the unique product life cycles and the needs of our customers in each of our businesses,” said Steve West, chief executive officer, Nordion. “The new organizational model is intended to allow for quicker decision making and provide the Nordion team with improved agility, clearer focus, and direct leadership accountability to better serve our customers and build shareholder value.”

The new Nordion leadership team intends to focus on appropriately allocating talent and resources to better support the unique characteristics of each business and their respective portfolios. Moreover, they plan to continue to evaluate opportunities that are expected to better serve our customers.

These announcements align with Nordion’s strategic priorities. The targeted therapies business unit is expected to continue to focus on building an interventional oncology business. The specialty isotopes business plans to concentrate on maintaining sterilization technologies’ cash generation, making selective growth investments and optimizing the medical isotope business.

Nordion plans to begin operating in the new business unit model on November 1, 2012, for the start of the company’s 2013 fiscal year. Nordion expects to continue to report financial results by its three business segments targeted therapies, sterilization technologies, and medical isotopes. Targeted Therapies will focus on TheraSphere while contract manufacturing is expected to be repositioned and reported under medical isotopes. The company’s segment reporting will incorporate the changes in the portfolios managed under each segment and comparative historic segment financial information is expected to be restated to align with these changes.

Nordion is a global health science company that provides products used for the prevention, diagnosis, and treatment of disease. The company is a leading provider of medical isotopes, targeted therapies, and sterilization technologies.

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