Medicago will turn it off COVID-19 in the vaccine project Quebec The company made the announcement on Thursday, after its sole shareholder decided not to invest in the company.
With Japan-based Mitsubishi Chemical Group deciding to “proceed with an orderly closing of its business operations in Canada and the United States”, Medicago announced that the group would cease all operations at the company.
“Medicago would like to thank all of its employees for their commitment, their passion and their dedication,” the company said in a statement.
“The Medicago team has pushed the scientific frontiers and we know they will continue to make incredible contributions to innovation and the field of biopharmaceuticals.”
A spokesperson confirmed to Global News that the shutdown would affect 586 jobs in Quebec.
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Medicago’s Covifenz shot was the first Canadian-developed COVID-19 vaccine allowed for use in February last year by Health Canada. The vaccine also marked the world’s first plant-based jab authorized for human use and was also the first Canadian vaccine of any type to be approved in more than 20 years.
The CoviFanz vaccine came a month after its approval from Health Canada rejected by the World Health Organization due to Medicago’s ties to tobacco giant Philip Morris, which held a one-third stake in the company. Philip Morris severed ties with Medicago in December.
According to The Mitsubishi Chemical Group, after the Medicago vaccine was licensed in Canada, the company began preparations to transition to “commercial production”.
Now, the reason for ending its operations with Medicago is due to the current global demand for the COVID-19 vaccine as well as “the economic context for the COVID-19 vaccine and the challenges Medicago faces in transitioning to commercial production.”
Mitsubishi Chemical Group said in a statement, “The group considers it impractical to continue investing in the commercialization of Medicago’s development products and has therefore decided to cease all its activities with Medicago and proceed with an orderly divestment of its business and activities.” Did.”
The group is also currently reviewing the impact of the decision, it said.
Osamu Shimizu, director of communications for Mitsubishi Chemical Group, said in an email to Global News that development of the CoviFange vaccine would be completely halted.
In addition, construction on a new, 90,000-square-metre facility and headquarters in Quebec City will be stopped, and “appropriate arrangements” including the sale of assets “will be considered in the winding down process,” he said.
In 2020, Medicago received $173M from the federal government for facility construction and research and development of the vaccine.
Laurie Bouchard, a spokesman for Minister of Innovation, Science and Industry Francois-Philippe Champagne, said the government was “disappointed” to learn of Mitsubishi’s decision.
“Given the effects this decision will have on their employees, we will continue discussions with the Government of Quebec to assess next steps,” Bouchard said.
“Medicago’s contribution to Canada’s biomanufacturing and life sciences ecosystem is significant because of their innovative plant-based vaccine technology.”
Additionally, Bouchard said the government expects cooperation from all involved parties to ensure Canada’s interests are protected in accordance with their legal and contractual obligations with the Canadian government.
“Protecting the health and safety of Canadians is a top priority for our government, which includes ensuring we have sufficient domestic vaccine production capacity to protect against future infectious disease threats and pandemics,” she said.
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Canada’s health minister and Quebec MP, Jean-Yves Duclos, is also disappointed by the decision, according to a statement to Global News Thursday.
“Our first thoughts are for the workers in the sector and their families,” the statement said.
“My Canadian government colleagues and I will work with the Quebec government and economic leaders in the region, particularly in the life sciences, to protect Canadian interests and the interests of workers and identify options for the future.”
In addition, Duclos and his constituency team “would like to ask the Government of Canada for any assistance they may need” in serving Medicago workers.
“His thoughts are with the workers and their families who are facing the sad consequences of this news,” Quebec’s Infrastructure Minister Jonathan Julien said on Twitter Thursday evening, in French.
“The scientific expertise that Medicago has built is invaluable and I am confident that the knowledge of the staff will soon make its way into Quebec,” he added.
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