December 11, 2013 Roy W. Brown Director, Strategic Alliances - - PowerPoint PPT Presentation

Mo-99 Supply Update & LEU Conversion Project Status OSTP Meeting December 11, 2013

Roy W. Brown Director, Strategic Alliances

Current Mo-99 Supply

Recent technical challenges at several research reactors and Mo-99 processing facilities have affected Mo-99 and Tc-99m generator supply. Mallinckrodt’s extensive supply network has prevented widespread shortages of generators. We continue to be the leading generator supplier in the U.S. and globally. The outlook for Mo-99 supply the balance of this year, and through January looks good. We will continue to provide routine supply updates to our customers.

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LEU Conversion Update

For the last several years Mallinckrodt has invested heavily in converting our Mo-99 production facility in the Netherlands to LEU. We have stayed focused on a routine supply of Mo-99 for generators during the conversion process. When our conversion project started we had an aggressive aspirational goal of being fully converted by the end of 2015. Despite our best efforts for conversion, we have run into some technical issues which have delayed the project. In addition to these technical issues we have faced reactor shutdowns which are causing further delays.

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LEU Conversion Update

Other Mo-99 producers who are in the process of converting to LEU have also stated they are having similar technical issues which are delaying their conversion. We continue to urge the four party agreement countries as well as S. Africa and Australia to recognize the need for continued HEU shipments until the conversion to LEU is completed. These delays will likely require HEU shipments throughout 2015 and 2016 to assure patient needs are met, before full conversion to LEU is attained. The costs associated with conversion to LEU conversion, and those facing Mo-99 producers from full cost recovery is pushing the cost of Mo-99 production higher. These higher Mo-99 costs will eventually be reflected in higher generator prices.

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