Ottawa medical manufacturer giving up nuclear licence after defying regulator

A storied Kanata medical manufacturer is in the process of relinquishing its nuclear licence, more than a year after Canada's nuclear regulator placed it under orders for violating the terms of that certificate.

On Friday, the Canadian Nuclear Safety Commission (CNSC) confirmed that Best Theratronics is in the process of offloading the nuclear material it used to manufacture cancer treatment devices.

"Best Theratronics Limited has obtained an export licence to ship its Cobalt 60 sealed sources, as well as an export licence to ship its Cesium 137 sealed sources," said Andrew McAllister, director of the CNSC's nuclear processing facilities division, during a public meeting.

Best Theratronics was once a Crown agency that created the world's first cancer treatment machine, but it has struggled in recent years under the private ownership of overseas businessman Krishnan Suthanthiran.

Suthanthiran says he has lost millions of dollars since buying the company from MDS Nordion in 2007. More recently, the company faced a protracted labour dispute that saw workers strike for nearly 10 months to demand better pay.

Last November, the CNSC issued orders against Best Theratronics after noticing that its financial guarantee had lapsed. The industry regulator ordered the company to make $1.8 million available to cover any cleanup costs in the event that its site was decommissioned.

But Suthanthiran never complied, telling CBC in October that the CNSC was in the wrong and that he lacked the funds to restore the guarantee.

Instead, Suthanthiran said he would give up his nuclear licence and shift the company toward activities that don't involve nuclear materials.

CBC asked Suthanthiran whether staff at Best Theratronics would would be out of work as a result of the company surrendering its nuclear licence.

In an email, he wrote that he was being forced "to relocate to the USA and India" and that would result in "the loss of 200 high-tech jobs." He also cited the high yearly cost of having the nuclear licence.

The CNSC has required Best Theratronics to submit monthly reports relating to its progress in offloading its nuclear material. But the company missed its December deadline, submitting its report several days later, McAllister said.

Manny Subramanian, a representative of Best Theratronics, told the CNSC the delay was due to Suthanthiran's absence.

"One particular report, you know, we ended up sending about a day late or two days late because Krish, the president of the company, was travelling. We couldn't get ahold of him,” Subramanian said.

The next deadline facing Best Theratronics comes Tuesday when it's due to submit a preliminary plan for decommissioning its plant in Kanata.