Medicago to cease operations in Quebec, scuttling COVID-19 vaccine production plans | 24CA News

Medicago will likely be shutting down its COVID-19 vaccine venture in Quebec after its sole shareholder determined to now not put money into the corporate, the corporate introduced Thursday.

With the Japan-based Mitsubishi Chemical Group deciding to “proceed with an orderly wind-up of its business operations in Canada and the United States,” Medicago introduced the group could be ceasing all operations on the firm.

“Medicago wishes to thank all its employees for their commitment, their passion, and their dedication,” the corporate mentioned in an announcement.

“The Medicago team has pushed scientific boundaries and we know that they will continue to make incredible contributions to innovation and biopharmaceutical’s sector.”

A spokesperson confirmed to Global News the shutdown will have an effect on 586 jobs in Quebec.

Medicago’s Covifenz shot was the primary Canadian-developed COVID-19 vaccine to be authorised to be used by Health Canada in February of final 12 months. The vaccine additionally marked the world’s first ever plant-based jab licensed for human use and was additionally the primary Canadian vaccine of any variety to be authorised in over 20 years.

The month after its approval from Health Canada, the Covifenz vaccine was rejected by the World Health Organization due to Medicago’s ties to tobacco big Philip Morris, which owned a one-third stake within the firm. Philip Morris minimize ties with Medicago in December.

According to The Mitsubishi Chemical Group, after the Medicago vaccine was licensed in Canada, the corporate started getting ready for a transition to “commercial production.”

Now, it’s motive for terminating its operations with Medicago should do with the present world demand of the COVID-19 vaccine, together with “economic context for the COVID-19 vaccine and the challenges Medicago faces in its transition to commercial production.”

“The Group considered it unviable to continue investing in the commercialization of Medicago’s development products and therefore chose to terminate all its activities with Medicago and proceed with an orderly dissolution of its business and activities,” The Mitsubishi Chemical Group mentioned in an announcement.

The group can be at present reviewing the impression the choice can have, it mentioned.

Mitsubishi Chemical Group communications director Osamu Shimizu mentioned in an e mail to Global News that improvement of the Covifenz vaccine will likely be discontinued solely.

In addition, development on a brand new, 90,000-square-metre facility and headquarters in Quebec City will likely be stopped, and “appropriate arrangements” together with the property’s sale “will be considered in the winding down process,” he mentioned.

In 2020, Medicago obtained $173M from the federal authorities for facility development and analysis and improvement of the vaccine.

Laurie Bouchard, spokesperson for Minister of Innovation, Science and Industry François-Philippe Champagne mentioned the federal government is “disappointed” to study of Mitsubishi’s determination.

“Recognizing the impacts this decision will have on their employees, we continue to be in discussion with the Government of Quebec to assess next steps,” mentioned Bouchard.

“Medicago’s contribution to Canada’s biomanufacturing and life sciences ecosystem is important because of their innovative plant-based vaccine technology.”

Additionally, Bouchard mentioned the federal government expects collaboration from all concerned events to make sure Canadian pursuits are protected accordingly to their authorized and contractual obligations with the Government of Canada.

“Protecting the health and safety of Canadians is our government’s top priority, including ensuring we have sufficient domestic vaccine production capacity to protect against future infectious disease threats and pandemics,” she mentioned.

Canada’s Minister of Health and MP for Quebec, Jean-Yves Duclos, can be disenchanted by the choice, in accordance with an announcement to Global News Thursday.

“Our first thought is for the workers in the region and their families,” the assertion mentioned.

“My Canadian government colleagues and I will work with the Government of Quebec and economic leaders in the region, particularly those in the life sciences, to protect Canada’s interests and those of the workers and to identify options for the future.”

Additionally, Duclos and his constituency staff may also be at service of Medicago employees “for any type of assistance they may wish to seek from the Canadian government.”

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