MDS reorganizes itslife sciences division

MDS Inc has completed the integration of its life sciences businesses aimed at improving efficiency and overall profitability. The move is highlighted by the discontinuation of MDS Pharmacologies, a novel approach to funding drug development off-balance sheet for pharmaceutical customers. The Toronto-based firm says the venture was not financeable in the current market but it hopes to revive the model at some future date. The consolidation also included the restructuring of MDS Pharma Services, the merger of MDS’s Canadian therapy systems software development group with its counterpart in Sweden and the closure of several unprofitable site management offices. The integration also impacts on MDS’s R&D tax credits, which will be realized upon the consolidation of certain Canadian legal entities within the life sciences division. The tax credits will be recorded as a reduction in R&D spending of $29 million….