Medicago’s abandoned facility in Quebec has been acquired by local investors for $17 million after nearly two years of inactivity. Originally intended for vaccine research and manufacturing, the complex faced challenges after the WHO rejected its COVID-19 vaccine, leading to its closure. New owners aim to transform the site into a life sciences hub, with significant renovations planned for 2025. This sale concludes Medicago’s operations in Quebec, marking a significant shift in the region’s pharmaceutical landscape.
Revitalization of Medicago’s Abandoned Complex
The long-dormant facility of the now-defunct pharmaceutical company Medicago in Quebec has recently found new ownership. After being unutilized for nearly two years, this complex has been acquired by a group of local investors for $17 million.
The ambitious project, which was initially announced in 2015, involved a $245 million investment to establish a factory in Beauport focused on vaccine research and manufacturing. Unfortunately, the venture faced significant setbacks when the World Health Organization rejected its COVID-19 vaccine, Covifenz, leading to the cessation of operations and resulting in extensive layoffs.
The property, which spans 700,000 square feet on a nearly one million square foot lot, was sold following an accepted offer on August 29, with the final sales agreement signed on November 1. The new owners, a limited partnership known as 2300 Estimauville SEC, are led by entrepreneurs Hugues Harvey, president of Harvey Corp, and Marc LeBel, founder of Anapharm and former president of NuChem Sciences.
Their vision is to transform this facility into a vibrant life sciences hub, attracting a variety of companies in pharmaceuticals, biotechnology, medical equipment, and public health fields.
Plans for Future Development
In an interview, Hugues Harvey expressed excitement about the new venture but remained tight-lipped about potential tenants. “We are in serious discussions with several clients, but I can’t disclose more details right now,” he stated.
The entrepreneurs have plans to invest “tens of millions of dollars” into renovations, with construction set to begin in early 2025. They aim to welcome the first tenants by 2026, rekindling hope for the area’s economic revival.
Quebec City Mayor Bruno Marchand welcomed the news, stating, “I am pleased that years of effort are now yielding results. The City will actively support necessary investments to stimulate this sector of the city.”
The Closure of the Medicago Chapter
The sale of this significant facility marks the end of Medicago’s presence in Quebec. Notably, just over a year ago, the former headquarters was sold for $1 to Aramis Biotechnologies, and Medicago’s main laboratory and over 600 scientific instruments were acquired by an AI-focused investment fund.
The land where the Beauport complex was built was originally purchased from the City of Quebec in 2015 for $4.66 million. However, the latest municipal assessment valued the property and its buildings at $47 million, reflecting a significant decrease from previous valuations.
A Brief Timeline of Medicago’s Journey
1997: Research and development begins at Laval University and Agriculture Canada.
1999: Medicago is officially established.
2003: Quebec provides a loan of $15.3 million to Medicago.
2006: Medicago goes public and joins the TSX Venture Exchange.
2011: Medicago launches Medicago USA and builds a factory in North Carolina.
2013: Mitsubishi Tanabe Pharma acquires Medicago for $357 million, privatizing the company.
2015: Quebec grants a loan of $74.5 million for a new factory in Quebec.
2020: Quebec provides a $7 million subsidy for a COVID-19 vaccine development.
2020: Ottawa invests $173 million in Medicago for vaccine production.
February 2022: Health Canada approves the Covifenz vaccine.
March 2022: The World Health Organization rejects the vaccine.
September 2022: Philip Morris sells its stake in Medicago.
February 2023: Medicago shuts down, leading to job losses for hundreds of workers.