Government of Canada also announces that Aramis Biotechnologies secured the assets needed to maintain, improve and expand Medicago’s plant-based technology platform in Canada that will enhance pandemic preparedness capabilities
Québec – Following the cessation of Medicago’s operations by its parent company Mitsubishi Chemical Group Corporation (“MCG”) in February 2023, the Government of Canada’s objectives were threefold: maintain Medicago’s intellectual property and critical research assets in Canada; ensure a Canadian company retains the technology platform, talent and expertise; and identify third-party investors that could help maintain and expand Medicago’s platform capabilities in-country. This is to enhance domestic pandemic preparedness capabilities and ensure that a promising technology platform remains in Canada.
François-Philippe Champagne, Minister of Innovation, Science and Industry, announced that the Government of Canada reached an agreement with MCG regarding Medicago’s obligations to the Strategic Innovation Fund. The agreement between the Government of Canada and MCG recovers a payment owed to the Crown in relation to the construction of the biomanufacturing facility. This includes a $40 million payment as well as the transfer of key Medicago research and development assets, intellectual property and equipment from Medicago to Aramis Biotechnologies (“Aramis”). Aramis is a new Canadian company based in the city of Québec under the leadership of former Medicago employees. A separate agreement has been reached between the two companies to secure Aramis’s ownership of the assets.
This agreement delivers on the opportunity for Canada to retain a promising technology platform, made in Canada, that proved effective in developing an authorized vaccine for COVID-19. It also helps establish a new Canadian company to continue the work of improving on this technology in Canada in order to address future health emergencies.
The agreement announced today presents a unique opportunity to capitalize on the original government investment in Medicago and retain key domestic assets within the Canadian ecosystem, in alignment with the objectives of Canada’s Biomanufacturing and Life Sciences Strategy. This agreement enables Canada to maintain an important domestic asset in the Canadian life sciences sector, growing and diversifying the national pipeline of vaccine technologies and providing Canadians with a safe and effective platform that can complement existing and future vaccine production capabilities.
“Our government has always been clear that the technology developed by Medicago is important to our life sciences sector and that we would work with our partners to keep expertise and workers in Quebec. This is why we worked closely with MCG to ensure that Medicago’s science, intellectual property and core assets remain in Canada and that its competencies and capabilities are retained in our country. It’s a pleasure to announce today that we have succeeded in meeting these objectives. I look forward to collaborating with Aramis Biotechnologies and to witnessing the continued growth of this made-in-Canada technology in the Quebec life sciences sector.” – François-Philippe Champagne, Minister of Innovation, Science and Industry
“We are working tirelessly to position Canada as a world leader in the biomanufacturing and life sciences sector. This agreement with MCG is great news and will ensure that Medicago’s intellectual property and assets remain in Canada and in the Quebec City region. This demonstrates our commitment to continuing to grow the Canadian life sciences sector to improve health care for Canadians and Quebecers, increase our resilience to face future health emergencies, and create good jobs for the middle class, including here in Quebec City.” – Jean-Yves Duclos, Minister of Public Services and Procurement and Member of Parliament for Québec
“Health research plays a key role in producing better health outcomes for Canadians. That is why our government made historic investments in research and development to ensure Canadians had access to safe and effective vaccines as quickly as possible. Thanks to the settlement today, Canada is able to maintain Medicago’s talent, intellectual property and critical research assets in Canada. This will enhance our domestic readiness and reinforce Canada’s position as a top contributor to health research, biomanufacturing and life sciences.” – Mark Holland, Minister of Health