MDS, parent company of MDS Nordion of Ottawa, has agreed to sell its MDS Pharma Services early-stage business for $45 million and minority equity positions.
Under the terms of the agreements, MDS will divest its discovery and preclinical operations in Bothell, WA; Lyon, France; and Taipei, Taiwan, to Ricerca Biosciences, which provides early-stage contract research organization services.
MDS' early-stage development operations and its development and regulatory services consultancy will be sold to a new corporation primarily owned by private investment firms Bain Capital Ventures and SV Life Sciences, which also have holdings in Ricerca.
The $45 million transaction includes a five-year, $25 million note and $20 million in cash that will be adjusted for working capital and other items. After currently projected adjustments, the $20 million cash payment is estimated to result in net cash proceeds of approximately $7 million.
Once the divesture is final, MDS will have completed its restructuring and will focus on building its MDS Nordion medical isotope business.
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