As MDS continues its efforts to sell the rest of its contract research division, the company is preparing investors for less-than-expected earnings from that sale.

MDS, which sold its late-stage operations last year and still seeks a buyer for its early-stage business, plans to focus on MDS Nordion, the company’s medical imaging business. In its annual report published this week, MDS told investors that the sale of the early-stage business will likely garner lower sale proceeds than previously expected, due to “continued deterioration of market conditions, the declining early stage customer base and new developments in the ongoing strategic review process.”  

The company said that some MDS customers have expressed concern  over the company’s restructuring and decreased focus on early stage, resulting in a reduction of orders and revenues. As a result, the sale proceeds—when and if the early-stage business sells—may not be enough to fund a distribution to shareholders.

The early-stage business was listed under discontinued operations in the annual report.