MDS, Inc. has entered into an agreement to sell its Analytical Technologies business to Danaher Corp. for $650 million in cash. The transaction is subject to shareholder and regulatory approval, and other closing conditions. The company also plans to sell its Pharma Services business, which provides drug discovery and early-stage development services for pharmaceutical and biotechnology companies.

Following the sale of these businesses, the company’s strategic goal is to focus on its MDS Nordion business, a provider of medical isotopes for molecular and diagnostic imaging, radiotherapeutics and sterilization technologies.

“The board and executive management team believe the proposed path forward provides the greatest opportunity to unlock the value of MDS businesses in the near-term and enables a substantial return of proceeds from the sale of the MDS Analytical Technologies business to shareholders,” said James S. A. MacDonald, chairman of MDS Inc.’s board of directors.

“The economic downturn and the prolonged shutdown of Atomic Energy of Canada Ltd.’s (AECL) National Research Universal (NRU) reactor have created significant challenges for our businesses that contributed to this course of action,” said Stephen P. DeFalco, president and chief executive officer of MDS Inc. “During this process, our MDS Pharma Services and MDS Analytical Technologies businesses will remain focused on delivering exceptional service to customers. MDS Nordion will remain focused on innovation and on building its market leadership in the provision of medical isotopes for molecular and diagnostic imaging, radiotherapeutics and sterilization technologies.”

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