| For      the fiscal year ended October 31,      2008 | Commission      File Number___001-15016 |
|------------------------------------------------------|-----------------------------------------|

| MDS      INC.(Exact      name of Registrant as specified in its charter)                                                                                                                                                                                                 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Canada      (Federal)(Province      or other jurisdiction of incorporation or organization)                                                                                                                                                                              |
| 8099(Primary      Standard Industrial Classification Code Number (if      applicable))                                                                                                                                                                                   |
| 98-0170107(I.R.S.      Employer Identification Number (if applicable))                                                                                                                                                                                                   |
| Suite      300, West Tower2700      Matheson Blvd., EastMississauga,      Ontario, Canada L4W 4V9(416)      213-4082(Address      and telephone number of Registrant's principal executive      offices)                                                                 |
| MDS      Pharma Services (US) Inc.621      Rose Street,  P.O. Box 80837, Lincoln, Nebraska      68501(402)      476-2811(Name,      address (including zip code) and telephone number (including area      code)of      agent for service in the UnitedStates) |

|  Title of each class        | Name of each exchange on which      registered |
|----------------------------------|------------------------------------------------|
| Common      Shares, no par value | New      York Stock Exchange                   |
|                             |                                           |

| none |
|------|

| none |
|------|

| [ X      ] Annual Information Form | [ X      ] Audited Annual FinancialStatements |
|------------------------------------|-----------------------------------------------|

A.           DisclosureControls and Procedures

See Management’s Discussion and Analysis ofFinancial Condition and Results of Operations for the fiscal year ended October31, 2008, filed as Exhibit No. 1.3 to this Annual Report on Form 40-F, under theheading “Management's annual report on internal control over financialreporting”.

See Management’s Discussion and Analysis of Financial Condition andResults of Operations for the fiscal year ended October 31, 2008, filed asExhibit No. 1.3 to this Annual Report on Form 40-F, under the heading “Controlsand Procedures – Changes in internal control over financialreporting”.

F.           AuditCommittee Financial Expert

G.           Codeof Ethics

H.           PrincipalAccountant Fees and Services

Audit Committee Pre-Approval Policies and Procedures

I.           Off-BalanceSheet Arrangements

J.           TabularDisclosure of Contractual Obligations

L.           Identificationof Audit Committee

| Exhibit No. | Description                                                                                                                                                                                                                                                          |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                 |
| 1.1         | Annual      Information Form for the year ended October 31, 2008.                                                                                                                                                                                                    |
|        |                                                                                                                                                                                                                                                                 |
| 1.2         | Audited      Consolidated Financial Statements for the fiscal year ended October 31,      2008, prepared in accordance with United States generally accepted      accounting principles.                                                                             |
|        |                                                                                                                                                                                                                                                                 |
| 1.3         | Management's      Discussion and Analysis of Financial Condition and Results of Operations      for the fiscal year ended October 31, 2008.                                                                                                                          |
|        |                                                                                                                                                                                                                                                                 |
| 23.1        | Consent      of Ernst & Young LLP.                                                                                                                                                                                                                               |
|        |                                                                                                                                                                                                                                                                 |
| 31.1        | Certifications      of President and Chief Executive Officer (Principal Executive Officer) and      Executive Vice-President, Finance and Chief Financial Officer (Principal      Financial Officer) pursuant to Section 302 of the Sarbanes-Oxley Act of      2002. |
|        |                                                                                                                                                                                                                                                                 |
| 32.1        | Certification      of President and Chief Executive Officer (Principal Executive Officer) and      Executive Vice-President, Finance and Chief Financial Officer (Principal      Financial Officer) pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.  |

|    Date:      January 29, 2009 | MDS Inc. By: /s/ Douglas S.      Prince                                        Name:   Douglas      S. PrinceTitle:     Executive      Vice-President, Finance              and      Chief Financial Officer |
|-----------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

|  Exhibit No. |  Description                                                                                                                                                                                                                                                   |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|              |                                                                                                                                                                                                                                                                |
| 1.1               | Annual      Information Form for the year ended October 31, 2008.                                                                                                                                                                                                   |
|              |                                                                                                                                                                                                                                                                |
| 1.2               | Audited      Consolidated Financial Statements for the fiscal year ended October 31,      2008, prepared in accordance with United States generally accepted      accounting principles.                                                                            |
|              |                                                                                                                                                                                                                                                                |
| 1.3               | Management's      Discussion and Analysis of Financial Condition and Results of Operations      for the fiscal year ended October 31, 2008.                                                                                                                         |
|              |                                                                                                                                                                                                                                                                |
| 23.1              | Consent      of Ernst & Young LLP.                                                                                                                                                                                                                              |
|              |                                                                                                                                                                                                                                                                |
| 31.1              | Certifications      of President and Chief Executive Officer (Principal Executive Officer) and      Executive Vice-President Finance and Chief Financial Officer (Principal      Financial Officer) pursuant to Section 302 of the Sarbanes-Oxley Act of      2002. |
|              |                                                                                                                                                                                                                                                                |
| 32.1              | Certification      of President and Chief Executive Officer (Principal Executive Officer) and      Executive Vice-President Finance and Chief Financial Officer (Principal      Financial Officer) pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.  |