Vaccine maker Novavax, despite concerns for its future, to maintain partnership with Ottawa
Global News
In an effort to get COVID-19 vaccines made in Canada, the federal government announced in February 2021 a deal between with Novavax to begin producing its vaccine in Montreal.
The federal government says it will continue its partnership with Novavax “at this time” despite the Maryland-based drugmaker’s worries it could go out of business within the year.
Novavax executives told investors on a conference call Tuesday there is significant uncertainty surrounding the company’s ability to continue funding operations as the market for COVID-19 vaccines changes.
In an effort to get COVID-19 vaccines made in Canada, the federal government announced in February 2021 a deal between the National Research Council’s (NRC) Biologics Manufacturing Centre (BMC) facility and Novavax to begin producing its vaccine in Montreal.
“At this time, there are no expected changes to the partnership between Novavax and the BMC,” said Laurie Bouchard, a spokesperson for Industry Minister Francois-Philippe Champagne, in an email to Global News.
Jim Kelly, Novavax’s chief financial officer, told investors on that call the company lost more than $600 million last year, and doesn’t expect to sell any new vaccine during the first three months of 2023. It also fears funding from the United States government could be cut.
The company, which has more than $1.3 billion in cash in hand, is counting on its ability to develop and sell an updated COVID-19 vaccine next fall and is cutting costs, Kelly told investors.
When the government announced its partnership with Novavax in 2021, Champagne said the Montreal facility — which has the potential to produce around two million doses of vaccine a month — would be in a position to begin production at the end of 2021. However, the NRC said on its website in December that it is still working on the “technology transfer” required to produce the vaccine.
At the time, Canada committed to purchasing 52 million doses of the vaccine, with an option to buy up to 24 million more doses.