Medicago to cease operations in Quebec, scuttling COVID-19 vaccine production plans
Global News
Medicago has shut down its COVID-19 vaccine project in Quebec after its sole shareholder decided to no longer invest in the company, the company announced Thursday.
Medicago will be shutting down its COVID-19 vaccine project in Quebec after its sole shareholder decided to no longer invest in the company, the company announced 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 announced the group would be ceasing all operations at the company.
“Medicago wishes to thank all its employees for their commitment, their passion, and their dedication,” the company said in a statement.
“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 affect 586 jobs in Quebec.
Medicago’s Covifenz shot was the first Canadian-developed COVID-19 vaccine to be approved for use by Health Canada in February of last year. The vaccine also marked the world’s first ever plant-based jab authorized for human use and was also the first Canadian vaccine of any kind to be approved in over 20 years.
The month after its approval from Health Canada, the Covifenz vaccine was rejected by the World Health Organization because of Medicago’s ties to tobacco giant Philip Morris, which owned a one-third stake in the company. Philip Morris cut ties with Medicago in December.
According to The Mitsubishi Chemical Group, after the Medicago vaccine was licensed in Canada, the company began preparing for a transition to “commercial production.”