Medicago | A recovery and millions recovered by Ottawa

Ditched by its former owner Mitsubishi, Medicago will be reborn from its ashes: its patents and part of the facilities of the defunct biopharmaceutical company will be taken over by Aramis Biotechnologies. Ottawa also recovers 20% — around 40 million — of the financial aid offered to the Japanese conglomerate since 2020.

Frédéric Ors, who held management roles for almost 14 years at Medicago before leaving his position in 2015, is the instigator of this relaunch attempt.

“Mitsubishi’s decision was a business decision that has nothing to do with the technology developed by Medicago,” he explains, in a telephone interview with The Press. We also acquired equipment that will come from the United States (where Medicago’s first commercial factory was located). Our intention is to repatriate all production to Canada and Quebec. »

The transaction, announced Friday, came at the end of negotiations between the Trudeau government and Mitsubishi regarding the transfer of assets and intellectual property. Since 2020, Ottawa has made 200 million available to Medicago, owned by the Japanese multinational, as part of its growth efforts.

“We worked closely with Mitsubishi to ensure that Medicago’s scientific knowledge, intellectual property and key assets remained in Canada,” said Minister of Innovation, Science and Industry, François-Philippe Champagne. We have achieved these objectives. »

Quebec, which granted a loan of 50 million to Medicago to help finance its expansion, is still trying to be reimbursed by the conglomerate. On Friday, the Ministry of the Economy, Innovation and Energy indicated that discussions were continuing, specifying that the “government expects to be fully reimbursed”.

Slimming recovery

Aramis will be located in the complex located on the Boulevard du Parc Technoologique, where there are administrative premises, greenhouses and production rooms. This is not the immense complex where Medicago was planning an expansion, in the Estimauville sector, where a new owner is still being sought.

There are still many steps to take since we are starting “from scratch” in terms of production with the redevelopment of the greenhouses since the vaccines are produced from plants. Mr. Ors says his team is currently made up of 14 people, including former Medicago executives.

“We are all shareholders,” says Mr. Ors. With private investors (whose names have not been revealed), we will invest a minimum of 40 million in the next five years to restart (production). »

In a decision that aroused astonishment because of its speed, Mitsubishi threw in the towel on February 2 by announcing the liquidation of the company’s assets despite the 176 million obtained from the Trudeau government and the 60 million loan granted. by the Quebec government in 2015 for the expansion phase in Quebec. This resulted in the loss of around 400 jobs.

The Japanese conglomerate had spoken of “important changes” occurring on the international scene against COVID-19 since the authorization of Covifenz” – the plant-based vaccine developed by Medicago. After obtaining approval from Health Canada in February 2022, the vaccine was rejected by the World Health Organization due to the biopharmaceutical’s links with the tobacco industry. The tobacco company Philip Morris was then the second largest shareholder of Medicago with a 21% stake. The multinational had sold its shares. This came too late.

Focus on the flu

Before the arrival of COVID-19, it was Medicago’s flu vaccine that was “the most advanced,” recalls Mr. Ors. This is where efforts will be made, he said.

“We think that it is in this market, where vaccines are still produced using eggs, that there are opportunities,” says the director of Aramis. There is still room for improvement, particularly among older people, where effectiveness rates remain low. »

This is the second time in about a week that assets that formerly belonged to Medicago have found buyers. On November 28, the Quebec biomarker specialist Linearis announced the opening of a laboratory in the space previously occupied by the defunct biopharmaceutical company, on Route de l’Église, in Quebec.

Linearis had acquired 650 “scientific instruments” in addition to integrating former Medicago employees specializing in mass spectrometry, quality assurance and laboratory management. The company plans to carry out its first analyzes there during the first three months of 2024.