MDS Receives Notice of Application from PerkinElmer, Inc.
11 Dezember 2009 - 11:46PM
PR Newswire (US)
TORONTO, Dec. 11 /PRNewswire-FirstCall/ -- MDS Inc. (TSX: MDS;
NYSE: MDZ), a leading provider of products and services to the
global life sciences markets, today announced that it was served
with a Notice of Application (the "Notice") from PerkinElmer, Inc.,
with whom MDS has a joint-venture to develop, manufacture and sell
inductively coupled plasma mass spectrometers (ICP/MS). This
product line represents less than 10% of annual revenue generated
by the MDS Analytical Technologies business. In September 2009, MDS
agreed to sell its interest in the PerkinElmer joint venture to
Danaher Corporation as part of the sale of the MDS Analytical
Technologies business, subject to obtaining the consent of
PerkinElmer, which is required by the terms of the joint-venture
agreement. To date, PerkinElmer has not provided its consent. In
the sale agreement, MDS and Danaher agreed that if PerkinElmer's
consent was not obtained, MDS would retain its interest in the
joint-venture and other related assets, and arrangements would be
established to facilitate the continued fulfillment of MDS's
joint-venture obligations. The Notice has been filed with the
Ontario Superior Court of Justice, and names MDS Inc., Danaher
Corporation and DH Technologies Development PTE Ltd. The Notice
relates to the sale of MDS Analytical Technologies and seeks a
range of alternative possible remedies: court direction with
respect to the development of protocols to enforce key provisions
of the joint-venture agreement between MDS and PerkinElmer; an
injunction preventing enforcement of provisions of the MDS
Analytical Technologies/Danaher sale agreement, which provide for
MDS's retention of the joint venture; or an interim and permanent
injunction preventing the completion of the sale of MDS Analytical
Technologies business to Danaher. MDS believes it has a strong
position and, if necessary, intends to defend this claim. The
Company continues to believe the sale of the MDS Analytical
Technologies business will be completed in the first calendar
quarter of 2010. MDS does not intend to comment further on these
matters unless a material development occurs which requires
disclosure. MDS Strategic Repositioning On September 2, 2009, MDS
announced it had reached an agreement to sell its MDS Analytical
Technologies business to Danaher Corporation for $650 million in
cash. The sale was approved by shareholders at a Special Meeting on
October 20, 2009. MDS currently intends to return approximately
$400 million to $450 million of sale proceeds to shareholders, by
way of a share buyback. The Company currently expects the sale to
close before the end of the first calendar quarter of 2010, subject
to the satisfaction of the conditions to closing. MDS also
previously announced that it intends to sell its remaining MDS
Pharma Services business, a leading provider of innovative drug
discovery and early-stage development solutions for pharmaceutical
and biotechnology companies. The Company continues to have
discussions with interested parties. There can be no assurance that
MDS will complete a transaction involving MDS Pharma Services. If
MDS determines that there is not an acceptable transaction, it
intends to retain and invest in building the business. Upon
completion of these transactions, the Company would be focused
solely on its MDS Nordion business, which is a leading provider of
medical isotopes for molecular and diagnostic imaging,
radiotherapeutics and sterilization technologies. Additional
background materials pertaining to the new strategic direction for
MDS Inc. can be found on MDS Inc.'s Website at
http://www.mdsinc.com/strategic_repositioning_of_mds/index.asp.
About MDS MDS Inc. (TSX: MDS; NYSE: MDZ) is a global life sciences
company that provides market-leading products and services that our
customers need for the development of drugs, and the diagnosis and
treatment of disease. We are a leading global provider of
pharmaceutical contract research, medical isotopes for molecular
imaging, radiotherapeutics, and analytical instruments. MDS has
more than 3,600 highly skilled people in 13 countries. Find out
more at http://www.mdsinc.com/ or by calling 1-888-MDS-7222, 24
hours a day. Caution Concerning Forward-Looking Statements This
document contains forward-looking statements, including statements
with respect to the proposed sale of the MDS Analytical
Technologies business, and factors that may affect such proposed
sale. Some forward-looking statements may be identified by words
like "believes", "expects", "anticipates", "plans", "intends",
"indicates" or similar expressions. The statements are not a
guarantee of future performance, and are inherently subject to
risks and uncertainties. MDS's actual results could differ
materially from those expressed in the forward-looking statements
due to these risks and a number of other factors, including, but
not limited to, successful implementation of structural changes,
including the outcome of litigation and other factors set forth in
reports and other documents filed by MDS with Canadian and U.S.
securities regulatory authorities from time to time, including
MDS's quarterly and annual MD&A, Annual Information Form, and
Annual Report on Form 40-F for the fiscal year ended October 31,
2008, filed with the U.S. Securities & Exchange Commission.
DATASOURCE: MDS Inc. CONTACT: MEDIA: Janet Ko, (905) 267-4226, ;
INVESTORS: Peter Dans, (905) 267-4230,
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