Ottawa ‘Took a Risk’ When Investing $150M in Medicago Vaccine Factory: Official

The official says Ottawa didn’t know which vaccines would be authorized and no vaccine existed when contracts with suppliers were put in place.

A vial of a plant-derived COVID-19 vaccine candidate, developed by Medicago, is shown in Quebec City on July 13, 2020. The Canadian Press/HO, Medicago

The Department of Public Works has acknowledged the government “took a risk” when subsidizing a $150 million COVID-19 vaccine factory in then Health Minister Jean-Yves Duclos’ riding of Quebec City.

“We took a risk of putting contracts with various suppliers for enough vaccines for all Canadians,” said Joelle Paquette, director general of the public works department, as first reported by Blacklock’s Reporter.

Ms. Paquette, while testifying at the Commons health committee on Dec. 4, was referencing subsidies to build a Medicago Inc. plant in Québec City. The plant was never completed and no Medicago vaccines were delivered. Ownership of taxpayer-funded research reverted to Medicago’s Japanese parent company, Mitsubishi Chemical Group.

When Conservative MP Rick Perkins asked who owned the intellectual property, Ms. Paquette said Medicago did.

“We did not know at the time which vaccines would actually be authorized,“ she said. ”There was no vaccine that existed at the time we put these contracts in place. We took a risk.”

Andrea Andrachuk, who is also a director general with the public works department, said Medicago was given $150 million under a 2020 agreement. The contract was voided after Medicago announced on Feb. 3, 2022, that it was shutting its Québec City operations with the loss of some 600 jobs.

“The Public Health Agency asked the Department of Public Works to reduce or eliminate the delivery of some of Medicago doses in order to readjust its stocks and avoid wastage and costs of logistics,” Ms. Andrachuk told the committee. “Medicago was also facing product challenges and delivery date challenges.”

“Discussions were undertaken with Medicago to revisit the contract. The parent company Mitsubishi announced it was going to discontinue its activities in North America,” Ms. Andrachuk said, adding that a $150 million non-refundable advance payment was made to Medicago.

Vaccine Rejected 

Medicago’s COVID-19 vaccine was not accepted by the World Health Organization (WHO) due to the company’s ties to tobacco companies. Canada is a signatory to the 2005 WHO Framework Convention on Tobacco Control, which calls on members to protect public health policies “from commercial and other vested interests of the tobacco industry in accordance with national law.”

When Tory MP Gérard Deltell asked officials if they were aware the Medicago vaccine would never be recognized by WHO because of its links to the tobacco industry, Ms. Paquette said: “The Public Health Agency Canada asked us based on the advice of scientists to go ahead with an advanced purchase agreement with Medicago.”

“I’m sorry, but how could you not presume an agreement signed by Canada with so many other countries that stated clearly, in black and white, that if tobacco had anything to do with it, it would not be recognized? How could you imagine it would be any different?” replied Mr. Deltell.

“The COVID-19 pandemic was an unprecedented situation,” Ms. Andrachuk responded.

MPs were also told the terms of the agreement signed between the Canadian government and Medicago were secret, and they could not see them.

“There was a lot of risk at the time,“ Ms. Andrachuk said. ”We didn’t know which vaccines if any would get Health Canada approval and even if they did, when they would be available.”

Cabinet spent $8 billion on vaccines contracted with seven manufacturers: AstraZeneca, Johnson & Johnson, Medicago, Moderna, Novavax, Pfizer and Sanofi. None of the contracts have been disclosed to parliamentary committees.