2 Min Read
June 5 (Reuters) - Canadian medical isotope supplier Nordion Inc reported lower quarterly profit on Wednesday, weighed down by higher costs at two of its segments.
Sales and administrative costs rose in the isotopes and targeted therapies segments, trimming their profits. Nordion announced earlier in the quarter that it had sold the latter division.
Nordion's main source of isotopes, the Atomic Energy of Canada Ltd (AECL) reactor in Chalk River, Ontario, was shut down for one month for planned maintenance during the second quarter and current third quarter, but returned to service on May 16.
The company is one of the world's leading producers of molybdenum-99, used in medical imaging, and it depends on raw material from the state-owned AECL reactor.
Net earnings for the second quarter fell to $731,000, or 1 cent a share, compared with a year-earlier profit of $3.2 million or 5 cents per share.
Revenue rose 12 percent to $56.1 million.
Analysts were expecting earnings of 5 cents per share, on revenue of $52.5 million, according to Thomson Reuters I/B/E/S.
Nordion, which hired advisers Jefferies & Company earlier this year to examine options for its future, said in May that it agreed to sell the targeted therapies division, which includes the liver cancer therapy TheraSphere, for $200 million in cash to British health care company BTG PLC.
Shares of Ottawa-based Nordion closed down 4 Canadian cents at C$7.99 on Wednesday on the Toronto Stock Exchange.