The speed with which Mitsubishi opted for a “rapid and opaque liquidation” of Medicago is disconcerting, denounces one of its co-founders, François Arcand, who launches a “call for honor” to the multinational so that it puts there of his to help find a buyer interested in the assets of the Quebec biopharmaceutical company.
“We are talking about the planned destruction of biological samples and the dismantling of equipment,” warns Mr. Arcand in a letter addressed to Jean-Marc Gilson, CEO of Mitsubishi Chemical Group (MCG), that The Press consulted. “Rather than extol the value of the company and ensure its sustainability, we secretly tear it apart. »
Still shaken by the surprise announcement of the multinational made a little less than two weeks ago, the man who was Chairman and CEO of Medicago from 1997 to 2003 is sorry for the silence of the Japanese conglomerate and the speed with which he wishes turn the page on Medicago, even if Quebec and Ottawa are scrambling to find a buyer.
“I was there six years and it’s one of the great things I’ve done in my life, adds the manager, in a telephone interview. I know there are a lot of people working on this right now. Hoping that [la lettre] give a boost. »
PHOTO EDOUARD PLANTE-FRÉCHETTE, THE PRESS
François Arcand, co-founder of Medicago
an auction
President and CEO since 2018 of Pharma in silica, a Quebec biopharmaceutical company that develops less invasive oncology treatments, Mr. Arcand claims to have no “direct or indirect interest” in Medicago, which came under the control of Mitsubishi in 2013. His request to the big boss of MCG: a “real auction among credible buyers” in order to save “26 years of ingenuity, effort and funding”.
It’s going to take someone who’s going to say, ‘OK, it’s going to take two or three years and maybe another 250 million, but I’m still going to buy something that’s worth a lot more at a discount’.
Francois Arcand
Mitsubishi had thrown in the towel, citing the “significant changes that have taken place on the international scene against COVID-19 since the authorization of Covifenz” – the plant-based vaccine developed by Medicago. Approved by Health Canada in February 2022, the vaccine had been rejected by the World Health Organization (WHO) because of the links of the biopharmaceutical established in Quebec with the tobacco industry.
The tobacco company Philip Morris, which was a shareholder of Medicago with a 21% stake, subsequently sold its shares. It seems to have come too late.
Think long term
The man who founded Medicago alongside Louis-Philippe Vézina believes that we must look beyond COVID-19. The company’s portfolio includes other candidate vaccines, including a phase 3 seasonal influenza vaccine. prevent the disease “in a significant number of people”.
“Think of the pharmaceuticals who still sell us old vaccines, analyzes Mr. Arcand. There are those who might think, “I’m going to put myself somewhere between my competitors and Moderna/Pfizer with cutting-edge technology.” But if you don’t have sellers, what do you want to do? »
Despite the 176 million offered by the federal government and the 75 million lent by Quebec, the Japanese multinational has been clear: it intends to liquidate the assets of Medicago. On Monday, MCG did not respond to questions from The Press to find out how this process will unfold. One thing is certain, the loan granted by Quebec for the construction of a complex in Quebec – which was never finished – will be reimbursed.
According to our information, there are exchanges between Mitsubishi and the Trudeau and Legault governments. However, the conglomerate seems to be waiting for solutions to be presented to it rather than getting involved in the file.
” They [Mitsubishi] are not against a buyer, says a government source familiar with the matter, but who is not authorized to speak publicly. Let’s say that Ottawa and Quebec are looking harder than them right now. »
Before the Standing Committee on Industry and Technology on Monday in Ottawa, the Minister of Innovation, Science and Industry, François-Philippe Champagne, had little to offer on the progress made in the file. When questioned, he underlined having exchanged with the leader of MCG and that the priority of his government was to “protect jobs” as well as the Quebec biopharmaceutical complex.
The end of activities at Medicago comes at a time when the two levels of government are trying to rebuild research and production capacities in the pharmaceutical industry, a gap exposed by the health crisis. Medicago employed more than 600 people at its facilities in Durham (North Carolina) and Toronto at the beginning of the month.
Learn more
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- 1999
- Medicago founding year
source: medicago
- 4
- Number of candidate vaccines (seasonal influenza, pandemic influenza, norovirus, rotavirus)
source: medicago