Covidien, a provider of healthcare products, announced Thursday a definitive agreement to sell its U.S. radiopharmacies to Triad Isotopes of Orlando, Fla. Financial terms of the transaction were not disclosed.
Triad operates a network of 26 nuclear radiopharmacies and six cyclotron facilities in the southeast U.S.
According to the Dublin-based Covidien, the decision to divest the network of 37 Mallinckrodt radiopharmacies was made following a thorough review and evaluation of a number of strategic alternatives. The company said the “decision is consistent with its strategy to streamline its portfolio and reallocate resources to its faster-growing, higher-margin businesses.”
Covidien reported that its radiopharmacy net sales were approximately $180 million in fiscal 2009.
Completion of the transaction is subject to customary closing conditions, as well as receipt by Triad of necessary state and federal licenses and Triad’s ability to secure financing for the transaction, with closing expected during the second calendar quarter of 2010, according to Covidien.