Nordion 3Q profit surges, helped by sale of unit

Nordion 3Q profit soars, benefits from large gain tied to sale of targeted therapies division

Associated Press

NEW YORK (AP) -- Nordion's fiscal third-quarter net income surged, bolstered by a large gain on the sale of its targeted therapies unit.

For the three months ended July 31, the medical isotopes provider earned $180.4 million, or $2.91 per share. That's sharply higher than the $12.3 million, or 20 cents per share, a year earlier.

The latest quarter included a gain of $182 million tied to the sale of the targeted therapies business, which concentrates on the targeted treatment of cancer. Its product TheraSphere is used to treat liver cancer. Nordion Inc. completed the sale to health care company BTG PLC in July, receiving about $190 million in net proceeds.

Removing the targeted therapies-related gain and other items, earnings were 20 cents per share compared with adjusted earnings of 25 cents per share in the prior-year period.

That narrowly beat the 19 cents per share that analysts surveyed by FactSet expected.

Revenue for the Canadian company climbed 7 percent to $71.7 million from $67.1 million. Wall Street was looking for $64.2 million in revenue.

Revenue for the sterilization technologies unit rose 14 percent to $36.5 million, while the medical isotopes division's revenue increased 9 percent to $24 million.

Shares of Nordion added 14 cents, or 1.8 percent, to $7.99 in midday trading Thursday. The stock has traded in a 52-week range of $5.51 to $10.96.

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