Quebec wants to help Medicago replace a cumbersome shareholder

In May, the World Health Organization (WHO) rejected the Quebec biopharmaceutical vaccine against COVID-19, which uses plants in its manufacturing process. The reason for the refusal is the presence of the tobacco company Philip Morris as a minority shareholder in the company, a decision linked to a policy of the UN agency adopted in 2005.

Quebec wants to help the company replace the minority shareholder, said Economy Minister Pierre Fitzgibbon on the sidelines of an economic announcement in Montreal on Monday.

” Medicago is a great Quebec company. They have several structuring development plans. So, I want to see Medicago being committed in Quebec as they are. If to achieve that, we can facilitate the buyback of Philip Morris shares, we will do it. “

Medicago’s Covifenz vaccine was approved by Health Canada in February for adults aged 18 to 64. It is the only COVID-19 vaccine made in Canada. In December, the company claimed its two-dose vaccine was 71% effective in preventing COVID-19 infections, according to a large study that included several variants, including Delta. The company’s results do not include the emerging Omicron variant, which was not circulating during the study period.

The federal government has signed a contract to purchase up to 76 million doses of Covifenz. Canada had planned to donate any excess dose of vaccine to low-income countries through the COVAX vaccine-sharing alliance. Since the WHO has refused Medicago’s request, Canada will not be able to donate doses of Covifenz.

Ongoing negotiations

Mr. Fitzgibbon had discussions with the leaders of Mitsubishi Tanabe Pharma in order to resolve the impasse, but the Japanese company must first negotiate itself the purchase of the participation of Philip Morris, he adds. It will be more up to Mitsubishi to buy out its American partner, Philip Morris. It’s not up to us to do that. I offered that the government could participate.

Mitsubishi is a 79% shareholder in Medicago. Philip Morris owns the balance of the shares, or 21%.

Mitsubishi is approaching the Legault government to obtain assistance. The company is asking for support so that Medicago’s vaccines receive a favorable reception from the WHO and can be marketed on a large scaleaccording to a recent entry in the Quebec Lobbyists Registry. The nature, form and amount of funding are unknownspecifies the company in the register.

Asked about the subject, Mr. Fitzgibbon replied that he was unable to say what the extent of government financial support would be. I don’t know the answer, because Medicago has ambitious plans to expand their operations. There are possibly other projects they want to do.

Medicago is finalizing its business plan which will be presented to Mitsubishi, adds the Minister. The provincial government could provide assistance for the buyout of the Philip Morris stake or for the projects possible of expansion. Details are yet to be determined.

When it will be done [la présentation du plan de Medicago à Mitsubishi]we are going to sit down with Mitsubishi and we are going to say what we are ready to do.