Nordion Inc. (TSX:NDN) is shaking up its business and executive boardroom in the wake of an unfavourable arbitration decision earlier this week.
Nordion's Steve West. (Photo supplied)
Nordion will change to having two business units: targeted therapies and specialty isotopes. The latter business will be segmented into sterilization technologies and medical isotopes.
CEO Steve West will also take on the chief operating officer role of targeted therapies on an interim basis as the company seeks a new leader for the division.
Three vice-presidents will change roles: Andrew Foti will be interim special counsel to the CEO, Scott McIntosh will be chief operating officer of specialty isotopes, and Tom Burnett will be general manager of medical isotopes, reporting to Mr. McIntosh.
Additionally, two vice-presidents will step down after the company shift is over: Kevin Brooks and Peter Covitz. Their roles in sales and marketing and innovation are "being absorbed into the business units," Nordion stated.
"The strategic realignment is designed to take into account the unique product life cycles and the needs of our customers in each of our businesses," stated Mr. West.
"The new organizational model is intended to allow for quicker decision making and provide the Nordion team with improved agility, clearer focus and direct leadership accountability to better serve our customers and build shareholder value."
Nordion also announced the appointment of a new board member, Jeff Brown, who is the CEO and founding member of Brown Equity Partners LLC. He previously held positions at U.S. private equity firm Forrest Binkley & Brown, Bank America Venture Capital Group and Security Pacific Capital Corp.
Nordion stated Mr. Brown's financial experience will be a boon to the company.
On Monday, an arbitrator ruled against Nordion concerning a battle over Maple nuclear reactors that AECL decided to scrap. The fight was over a design flaw that Nordion said could be fixed.
Nordion shares lost more than a third of their value after the announcement of the ruling.