Novavax, which planned to produce vaccines in Montreal, could go bankrupt
The American company which had signed an agreement with the Canadian government to produce vaccines against COVID-19 in Montreal warns investors that it could well go bankrupt during this year.
During a conference call with investors on Tuesday, Novavax executives discussed significant uncertainty about the company's ability to continue its financing activities, as the market for COVID-19 vaccines 19 is evolving around the world.
Two years ago, in February 2021, the federal government announced the conclusion of an agreement with the company established in the Maryland to produce COVID-19 vaccines in Canada. A plant is currently being built in Montreal, at the site of the National Research Council of Canada (NRC), in Côte-Saint-Luc.
On a website last updated last December, the NRC writes that it is still working on the technology transfer needed to produce the vaccine.
Director Novavax financier Jim Kelly told investors on Tuesday that the company, which lost more than $600 million last year, does not expect to sell any new vaccines in the first three months of 2023. Novavax fears moreover that the financing of the American government for vaccines be cut.
The Japanese company Mitsubishi Chemical had announced at the beginning of February the closing of its Quebec division Medicago, in Quebec , where there were also plans to manufacture vaccines against COVID-19.
Quebec Minister of the Economy, Pierre Fitzgibbon, admitted on February 20 that x27;there were not many potential buyers for the Medicago plant in Quebec ec, otherwise Mitsubishi would have sold it themselves.
