Minister unclear on whether government will get back $173M it gave to vaccine maker set to close

Innovation, Science and Industry Minister Franois-Philippe Champagne said Friday the government has legal options to recover $173 million it gave to soon-to-be defunct medical company Medicago for COVID-19 vaccine development. But he didn't say whether the government is looking to get its money back.

The government gave the money to the Quebec City-based company inOctober 2020 to support the development of the company's plant-based vaccineCovifenz, and expand production of the vaccine.

Covifenzis the first, and only, COVID vaccinedeveloped in Canada thatHealth Canada has approved for use. The government funding came at a time of public anxiety about the government's ability to secure enoughvaccine doses.

Mitsubishi Chemical Group, Medicago's owner, announcedThursday that it's shutting Medicago down.

Ottawahad an agreement with Medicago to buy up to 76 million doses of the vaccine.

In a news conference Friday, Champagne did not say whether the government would look to get the $173 millionback.

"That's not the main focus today," Champagne said, adding that the government is more focused on looking for business partners to preserve the company's workforce, technology and intellectual property.

"We have a number of legal recourses, but the order of business [is to] preserve the jobs."

Champagne did not say what legal options the government has, or whether it would use them.

Osamu Shimizu, director of thecorporate communications division atMitsubishi Chemical Group, told CBC Newsthat Medicagohas about400 employees in Canada 360in Quebecand about 180 in the United States.

Quebec Economy Minister Pierre Fitzgibbon said Friday the Quebec government is prioritizing findinga buyer for the company overrecouping the money it has loaned toMedicago.

Covifenzhas not been distributedin Canada or internationally.The World Health Organization (WHO) rejectedthe vaccine for itsCOVID-19 Vaccines Global Access (COVAX) program in March 2022, citingcigarettemanufacturer Philip Morris International's partial ownership ofMedicago. Philip Morris divested its shares in Medicagolate last year.

In a statement about Medicago's closure, Mitsubishi Chemical Group cited "significant changes to the COVID-19 vaccine landscape since the approval of Covifenz" to explain its decision.

Champagne acknowledged that mRNA vaccine technology for COVID-19 vaccines has become dominant as it "seemed to be most effective," butsaidMedicago's plant-based vaccine is still "promising."

Champagne added that Medicagomade commitments to the federal and provincial governments. He didn't say what they are.

"The company assured us that it would respect alltheir commitments [to] the Government of Quebec and the Government of Canada," he said.

Shimizusaid Mitsubishi Chemical Groupcan't comment on any discussions it's having with government entities.