International Isotopes said Tuesday it would no longer provide radiological field services for the Department of Energy, after the federal agency put a hold on all existing contracts in the wake of a cesium-137 spill last May during a job in Seattle.
“Regardless of the DOE’s future plans for field service contracts, it is unlikely that the Company will seek this type of contract work in future years,” the Idaho Falls, Idaho, nuclear medicine company said in a press release on its 2019 earnings.
That applies to all radiological field services outside International Isotopes’ own facility, President and CEO Steve Laflin told Weapons Complex Morning Briefing. The Energy Department has been the only client for this work over the latest year, though the company had previously provided the same service for the United Nations nuclear agency.
The work has primarily involved recovery of retired sealed sources used in hospitals and other settings, along with installation or extraction of select cobalt therapy devices, according to an International Isotopes 10-K document filed Monday with the Securities and Exchange Commission.
“The decision is based upon changing insurance requirements and carrier exclusions of covered activities,” Laflin said by email. “It is possible the coverage requirements could change in future years but it is unknown what future contract opportunities there could be.”
In May 2019, International Isotopes was removing a blood irradiator from the University of Washington’s Harborview Medical Center in Seattle for DOE’s National Nuclear Security Administration. An accident caused the release of cesium-137, contaminating 13 people and seven floors of the building.
In the 10-K, management said DOE had frozen or terminated all contracts for this type of work by International Isotopes.
Radiological services revenue dropped by roughly 58% from 2018 to 2019, according to the earnings release. Overall, International Isotopes reported a 14% drop in sales, year over year, from $10.4 million in 2018 to over $8.9 million in 2019.
