Feds testify on $173 million COVID-19 vaccine factory that never got built

In October 2020, the Trudeau Liberals signed a 'non-refundable' advance purchase agreement with Medicago despite no reassurances that Health Canada would approve the vaccine for consumption.

Feds testify on $173 million COVID-19 vaccine factory that never got built
THE CANADIAN PRESS/Adrian Wyld
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The feds admitted Monday that their $323 million taxpayer gambit into Medicago failed without a factory built or a single COVID jab administered.

The Department of Public Works acknowledged it "took a risk" in subsidizing the manufacturer’s plant located in Minister Jean-Yves Duclos’ riding, reported Blacklock’s Reporter.

"We took a risk of putting contracts with various suppliers for enough vaccines for all Canadians," said Joelle Paquette, director general with the public works department.

In October 2020, the Trudeau Liberals signed a "non-refundable" advance purchase agreement with Medicago despite no reassurances that Health Canada would approve the vaccine for consumption.

Conservative MP Rick Perkins called the arrangement "just unbelievable," which Paquette confirmed as unusual contracting.

"We did not know at the time which vaccines would actually be authorized," she said. "There was no vaccine that existed at the time we put these contracts in place. We took a risk."

However, Health Minister Mark Holland justified their advance purchase agreements with vaccine manufacturers, stating his government had to provide Canadians with a quick vaccine supply. 

"Let's remember back to the depths of the pandemic when we were all praying for a vaccine," he told reporters. "The government did the responsible thing."

Including Medicago, the feds signed agreements with Moderna (up to 44 million doses), Pfizer-BioNTech (up to 51 million), Johnson and Johnson (up to 38 million), Novovax (up to 76 million), Sanofi-GlaxoSmithKline (up to 72 million), and AstraZeneca (20 million) at a cost of $8 billion.

While Medicago received Health Canada approval in 2022, they reversed course on mass-production after the World Health Organization (WHO) rejected its application for emergency use over ties to a major tobacco company. 

They closed their doors following shareholder divestment in late 2022 by Philip Morris International (PMI), citing "significant changes" to the vaccine market led to its closure.

Paquette confirmed Medicago never completed construction on its factory, costing taxpayers $173 million, according to Blacklock’s Reporter.

Andrea Andrachuk, another director general with Public Works, also confirmed Medicago voided the contract February 3 after shutting its Québec City operations at cost of 600 jobs. 

"Discussions were undertaken with Medicago to revisit the contract," she claimed. However, Medicago’s Japanese parent company Mitsubishi Chemical Group discontinued its activities in North America.

The Public Works Official told committee that Medicago "met all terms for the payment" at the time.

The Trudeau Liberals have yet to disclose the COVID jab contracts to parliamentary committees, as MPs learned the terms of jab agreements were secretive, reported Blacklock’s Reporter.

"Could you tell us something about those conditions?" asked Bloc Québécois MP Julie Vignola. "No, I cannot," replied Andrachuk.

To make matters worse, ownership of taxpayer-funded research reverted to Mitsubishi Chemical Group without federal recourse on behalf of taxpayers.

"Who owns the intellectual property?" asked Perkins. "Medicago owns the intellectual property," replied Paquette.

Innovation Minister François-Philippe Champagne told reporters last month they are in the midst of negotiating a settlement with Mitsubishi Chemical Group to obtain the intellectual property produced by Medicago.

"We're very close [...] we found someone who is willing to take back the assets and some of the people to turn that around and that's what we hope is going to happen," he said.

The federal health committee voted November 8 to uncover why the failed pharmaceutical company received a $323 million contract without any net-benefit to taxpayers.

Conservative MP Stephen Ellis tabled the inquiry upon learning the feds paid Medicago $150 million to secure 76 million jabs. 

"Three hundred million dollars of taxpayer money was wasted and [...] was hidden deep in a document," he told the committee.

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