Labor Dispute at Atomic Energy of Canada May Impact Nuclear-Medicine Community

["Sandy Perle" <sandyfl@earthlink.net>]

This issue has been discussed recently. Here is an updated article:

Wednesday May 20, 1:30 pm Eastern Time

Company Press Release

Labor Dispute at Atomic Energy of Canada May Impact
Nuclear-Medicine Community

WOODLAND HILLS, Calif.--(BW HealthWire)--May 20, 1998--Syncor 
International Corp. (Nasdaq:SCOR - news)
Wednesday announced that the nuclear-medicine community may experience 
a temporary interruption in the supply of
molybdenum (99Mo) -- the parent isotope of technetium (99Tc) -- because of a 
labor dispute at Atomic Energy of Canada
Ltd. (AECL). 

AECL operates the nuclear reactor in Chalk River, Ontario, which produces 
molybdenum. Molybdenum is a crucial isotope
used in the practice of nuclear medicine. In North America, the nuclear-
medicine community is dependent on AECL as the sole
supplier for molybdenum. 

AECL, which is the supplier of raw material for the major component product for 
the nuclear-medicine industry, went on strike
on May 19, 1998. MDS Nordion uses this component to produce approximately 
70 percent of all molybdenum 99 suitable for
use in the production of technetium generators. 

Syncor derives approximately 60 percent of its radiopharmacy net sales per 
day from radiopharmaceutical products using
technetium 99m, which is a derivative of molybdenum 99. 

Syncor is working with the entire industry to obtain alternative material backup 
from other sources worldwide. Because of
MDS Nordion capacity, rationing of molybdenum may be necessary, depending 
on the length of the potential strike action. 

Three other radiopharmaceuticals, Iodine-125, Xenon-133 and Iodine-131, could 
also be affected. These
radiopharmaceuticals are used for diagnostic or therapeutic purposes. 

At this time, the company is unable to quantify the effect that this strike may 
have on its sales and profitability, but has taken
steps to minimize the effects of the strike in the short term. 

Generally, if the strike is short in duration (two to three days), the financial 
effects will be minimal. If the strike were to last for a
week or more, however, the effects on the company's sales and earnings could 
be significant. 

Syncor International is the leading provider of radiopharmaceuticals, 
comprehensive value-added specialized pharmacy
services and medical imaging services. 

In its core specialized pharmacy-services business, Syncor compounds and 
dispenses radiopharmaceuticals -- in
patient-specific unit-dose and multidose form -- for diagnostic and therapeutic 
use by nuclear-medicine departments in
hospitals and outpatient clinics. 

Syncor distributes these time-critical pharmaceuticals through an integrated 
network of strategically located nuclear pharmacies,
119 domestic and 13 international. This network also provides information- 
management services and currently serves more
than 7,000 customers. 

Syncor continues to pursue a growth objective, which will broaden its role in 
medical imaging. The company has become,
through a series of recent acquisitions, one of the nation's leading providers of 
medical imaging services. Syncor owns or
operates 39 medical imaging centers in 11 states and Puerto Rico, plus five 
``open'' MRI sites. 

------------------
Sandy Perle
Technical Director
ICN Dosimetry Division
Costa Mesa, CA 92626
Office: (800) 548-5100 x2306 
Fax:    (714) 668-3149
  
sandyfl@earthlink.net
sperle@icnpharm.com

Personal Website: http://www.geocities.com/CapeCanaveral/1205
        
ICN Dosimetry Website: http://www.dosimetry.com

"The object of opening the mind, as of opening 
the mouth, is to close it again on something solid"
              - G. K. Chesterton -

The opinions expressed are solely, absolutely, positively, definitely those of the author, and NOT my employer