by Lauren Dubinsky
, Senior Reporter | April 19, 2018
BWX Technologies Inc. announced on Tuesday that it’s acquiring Sotera Health’s Nordion medical isotope business for an undisclosed amount.
“We have plans to enter the medical radioisotope market with a new, innovative technology,” Dr. Jonathan Cirtain, VP of advanced technologies at BWXT, told HCB News. “So we feel this is the right time for this acquisition, because we anticipate it will streamline our entry into the industry while mitigating schedule and expense risks associated with new facility construction.”
Nordion’s medical isotope business is a global manufacturer and supplier of critical medical isotope radiopharmaceuticals for research, diagnostic and therapeutic applications. Its main operations are in Kanata, Ontario, and Vancouver, British Columbia, and its customers include hospitals, radiopharmacies and radiopharmaceutical companies.
After closing the deal, BWXT anticipates that it will be able to reduce capital expenditures by about $100 million before acquisition costs. The company expects capital expenditures of approximately $150 million this year.
According to BWXT, this acquisition “accelerates and de-risks” its entry into the medical radioisotope market.
“Any time a company enters a new business line, certain risks have to be addressed,” said Cirtain. “[The acquisition] adds highly trained personnel, world-class licensed facility assets and decades of experience in the commercial production of radiochemicals and radiopharmaceuticals to BWXT — all of that lowers the risks associated with developing those assets ourselves.”
The deal is still subject to Canadian and U.S. regulatory approval, but it’s expected to close by the end of this year.