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news.Nordion, an Ottawa headquartered provider of products and services to the global health science market, has settled claims filed by India-based Dr. Reddy's Laboratories in 2009 related to repeat study and mitigation costs of $10m and lost profits of $70m.
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The legal action, initiated by Dr. Reddy’s in New Jersey, related to certain bioequivalence studies by the former MDS Pharma Services business unit from 1 January 2000 to 31 December 2004.
The settlement is expected to result in a loss of $1.4m for Nordion after taking into account financial reserves maintained in relation to the claim.
The settlement will result in a net cash outflow of $17m that includes insurance proceeds received to date.
Nordion intends to report these in its second fiscal quarter of 2013.
Other details of the settlement, however, have not been divulged.