Conservatives demand an accounting of unfulfilled vaccine contract

At Monday's Commons Health Committee, conservative members implored their NDP colleagues to support a motion to investigate at least $150 million in losses related to an undelivered contract by COVID-19 vaccine manufacturer Medicago.

Sask CPC MP Robert Kitchen asks the Liberals for a full accounting of their $150 million handout to Medigaco. This vaccine company apparently never delivered a single vial of anything and then closed its doors. https://t.co/sgjduyg17O pic.twitter.com/dttVoFwiOA

— Sheila Gunn Reid (@SheilaGunnReid) November 7, 2023

The vote on the motion is expected Wednesday.

Medicago was contracted to deliver 76 million doses of the company's proposed Covifenz vaccine and received $173 million in handouts to upgrade its existing manufacturing facility in Quebec City and develop the vaccine.

Medicago's facility was located in Health Minister Jean-Yves Duclos' riding. The facility shuttered in February, leading to the layoff of 600 employees.

Commons health committee curious to know how many millions were lost in failed attempt to build subsidized vax factory in the Quebec City riding of Public Works Minister @JYDuclos.  https://t.co/ejA53s73lM #cdnpoli pic.twitter.com/QSRCgld13k

— Blacklock's Reporter (@mindingottawa) November 7, 2023

The company was paid $150 million in a non-refundable payment by the Canadian government as part of the contract, which was quietly terminated by "mutual consent." 

The details of the losses were uncovered in an investigation by The National Post into losses posed by the Public Health Agency of Canada.

#ICYMI - Ministry reveals $150M PHAC loss was from 'unfulfilled' COVID-19 vaccine deal with Quebec company Medicago https://t.co/CcT5UaDMaj pic.twitter.com/RTsORJtjrd

— National Post (@nationalpost) November 4, 2023

Duclos had previously claimed allegations of waste within his ministry were "unfounded."

Public Health Agency’s Loss of $150 Million Due to Unfulfilled Vaccine Contract: Minister

Accusations of waste are “completely unfounded.”https://t.co/reX4rBu5Em

— Noé Chartier (@NChartierET) November 4, 2023

Medicago's emergency authorization of its vaccine was pulled after criticism of the company's partnership with tobacco company Philip Morris International Inc.

WHO reviewing policy after rejecting emergency use of Canadian-made COVID-19 vaccinehttps://t.co/zzOLtKGjAC

— CP24 (@CP24) March 25, 2022

Philip Morris, the maker of Marlboro cigarettes, divested its 21% stake in Medicago in December 2022.

Covifenz was proposed to be a "plant-based" vaccine, and the sale of Phillip Morris' shares of the company was promised to get the vaccine to international markets. Instead, the company's Quebec facility closed just 30 days later.