The turbulent medical isotope market took its toll on Nordion of Ottawa, Ontario, in the company's fourth quarter and fiscal 2010 financial results (end-October 31, 2010).
In fiscal 2010, revenues from continuing operations increased 4% to $240.4 million, compared with $231.3 million in fiscal 2009. The company's loss from continuing operations climbed to $103.3 million, compared with a loss of $11.7 million in the previous fiscal year.
In the fourth fiscal quarter, revenues from continuing operations advanced to $85.8 million, compared with $51.4 million in the fourth quarter of fiscal 2009. Income from continuing operations was $9.3 million, compared with a loss of $18.2 million in the same quarter a year ago.
Nordion blamed the greater losses on the current state of the medical isotope market, which, the company noted, has changed "significantly" since the 16-month shutdown and August 2010 restart of Atomic Energy of Canada's (AECL) National Research Universal reactor, which produced much of North America's supply of molybdenum-99 (Mo-99).
This has resulted in lower demand and reduced market share for the company, which are expected to offset increases in prices. The company expects revenue and segment earnings for the first and second quarter of fiscal 2011 to be similar to its results for medical isotopes in the fourth quarter of fiscal 2010.
Nordion said it continues to work with existing customers and is in discussions with potential new customers to increase its global market share of Mo-99.
"These changes created uncertainty in the medical isotope market, in general, and have specifically impacted Nordion," the company wrote in its financial update. "Now that Nordion has completed the strategic repositioning, we're focused on driving improved profitability and cultivating sustainable growth."
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