Vaccine maker Novavax, despite concerns for its future, to maintain partnership with Ottawa | 24CA News

The federal authorities says it would proceed its partnership with Novavax “at this time” regardless of the Maryland-based drugmaker’s worries it may exit of business throughout the 12 months.

Novavax executives advised traders on a convention name Tuesday there may be vital uncertainty surrounding the corporate’s potential to proceed funding operations as the marketplace for COVID-19 vaccines modifications.

In an effort to get COVID-19 vaccines made in Canada, the federal authorities introduced in February 2021 a deal between the National Research Council’s (NRC) Biologics Manufacturing Centre (BMC) facility and Novavax to start producing its vaccine in Montreal.

“At this time, there are no expected changes to the partnership between Novavax and the BMC,” stated Laurie Bouchard, a spokesperson for Industry Minister Francois-Philippe Champagne, in an e-mail to Global News.

Jim Kelly, Novavax’s chief monetary officer, advised traders on that decision the corporate misplaced greater than $600 million final 12 months, and doesn’t anticipate to promote any new vaccine throughout the first three months of 2023. It additionally fears funding from the United States authorities could possibly be minimize.

3:27Trudeau broadcasts plan to supply COVID-19 vaccines in Canada

The firm, which has greater than $1.3 billion in money in hand, is relying on its potential to develop and promote an up to date COVID-19 vaccine subsequent fall and is chopping prices, Kelly advised traders.

When the federal government introduced its partnership with Novavax in 2021, Champagne stated the Montreal facility — which has the potential to supply round two million doses of vaccine a month — could be able to start manufacturing on the finish of 2021. However, the NRC stated on its web site in December that it’s nonetheless engaged on the “technology transfer” required to supply the vaccine.

At the time, Canada dedicated to buying 52 million doses of the vaccine, with an choice to purchase as much as 24 million extra doses.

Novavax advised Global News in an e-mail that it stays dedicated to creating its vaccine in Canada.

“Novavax continues to be committed to delivering our vaccine in Canada to support ongoing vaccination efforts while providing an alternative technology platform. Additionally, Novavax continues to make progress towards establishing local manufacturing capabilities in partnership with NRC/BMC, with manufacturing of process performance qualification batches expected to begin in early 2023,” the spokesperson stated.

The spokesperson added Novavax isn’t presently exploring a sale, however that it’s targeted on “three near-term priorities” to assist the business this 12 months: delivering a “competitive product” for the autumn 2023 vaccination season; decreasing spending charges, managing money circulation and evolving scaling and construction; and leveraging its expertise platform, capabilities and asset portfolio to drive “additional value” past its vaccine.

1:59Montreal facility to supply Novavax vaccine within the combat towards COVID-19

Christine Jodoin, vice chairman of strategic initiatives on the NRC, additionally expressed the division’s dedication to work with Novavax.

“The BMC was built to be a contract manufacturing organization for Canada, with full end-to-end manufacturing capabilities and two individual production lines. In response to health crises, its public-good mandate means the facility can pivot to produce cell-based vaccines or other drugs to keep Canadians safe,” Jodoin stated.

“We’re continuing to explore options with potential collaborators on producing vaccines and other biologics at the facility on its second production line.”

Novavax’s shot, a conventional protein-based vaccine, was pitched as a substitute for these from Moderna and Pfizer-BioNTech within the hope it could win over skeptics of newer mRNA expertise. The federal authorities accepted the vaccine in February 2022.

Throughout the pandemic, Canada has struggled to ramp up COVID-19 vaccine manufacturing. A cope with Chinese firm CanSino Biologics — which may have seen the corporate’s vaccine manufactured on the Montreal facility — fell aside in the summertime of 2020.

Last month, Mitsubishi Chemical introduced that one other firm planning to make COVID-19 vaccines in Canada, Quebec-based Medicago Inc., could be shut down.

1:52New Moderna vaccine manufacturing plant anticipated to be up and working by 2024: Champagne

Despite these setbacks, in April 2022, Moderna introduced it could construct a brand new manufacturing facility in Laval, Que.

Ottawa’s strategy to buying COVID-19 vaccines throughout the pandemic ensured Canadians had entry to vaccines rapidly, and reversed 40 years of decline within the nation’s biomanufacturing sector, Bouchard stated.

“So far, we have invested $1.8 billion towards 33 projects across the country and we continue to invest in the researchers, talent and innovation that will keep strengthening the Canadian life sciences ecosystem,” she stated.

— with recordsdata from The Canadian Press

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