A COVID-19 vaccine manufacturing company in Quebec is set to cease all operations after its owner and sole shareholder decided to pull investments because of “significant changes” in the COVID vaccine-making industry.
“However, in light of significant changes to the COVID-19 vaccine landscape since the approval of Covifenz, and after a comprehensive review of the current global demand and market environment for COVID-19 vaccines and Medicago’s challenges in transitioning to commercial-scale production, the Group has determined that it will not pursue the commercialization of Covifenz,” MCG wrote.
MCG also said it judged that Medicago’s commercialization plans weren’t worth further investment and that it will now begin “an orderly wind up of its business and operations.”
Prime Minister Justin Trudeau announced in October 2020 that the federal government would invest up to $173 million in Medicago in order to “support Canada’s response to COVID-19 and future preparedness.”
WHO
However, the World Health Organization (WHO) rejected Medicago’s vaccine application for emergency use in March 2022 because of the company’s ties with tobacco companies.WHO has a strict policy against engaging with companies that promote tobacco.
At the time, former Conservative Party leader Erin O’Toole criticized WHO for rejecting Medicago’s vaccine while approving less effective vaccines that had been manufactured in China.
MCG has not specified exactly when Medicago’s business operations will be halted.
“Medicago’s activities and its regular operations will be significantly reduced and refocused on the wind down process. The winding up process will be completed in due course, in accordance with local laws and regulations,” it wrote.
The company added it will “promptly disclose” any matters that may arise in the process requiring attention.
“This impact to the Group’s earnings is currently under careful examination.”