Mitsubishi buys out PMI to regain WHO's approval for Covifenz vaccine

Jan.03.2023
Mitsubishi buys out PMI to regain WHO's approval for Covifenz vaccine
Mitsubishi buys PMI shares to regain WHO trust for Medicago's COVID vaccine, amid concerns over tobacco industry investments.

In order to regain the favor of the World Health Organization (WHO) in the fight against COVID with their Covifenz vaccine, Mitsubishi had to acquire all shares of Philip Morris International (PMI) in the Medicago laboratory. The health organization welcomed the move and urged caution in continued investment in the tobacco industry.


Emotions of disappointment continue to mount at the Medicago lab over their COVID vaccine Covifenz. Developed from tobacco plants of the Nicotiana benthamiana species, the vaccine was initially thought to have only 71% efficacy, significantly lower than its competitors and deemed a second-string medication. In March 2022, Medicago was further dealt a blow when the World Health Organization (WHO) refused to include Covifenz on its list of approved vaccines, citing the acquisition of 21% of the company's shares by Philip Morris International (PMI) as the reason.


Despite receiving support from the federal government, which has pre-purchased 76 million doses of the vaccine, and from the Quebec government, which is considering setting up a production site in Quebec, Medicago has yet to deliver any doses of the planned vaccine. Following production issues at its North Carolina factory, the company announced in May 2022. Multiple delays have also postponed the start of production at the Quebec site to an unspecified date.


The Canadian government's venture capital investment


In an effort to regain the trust of the World Health Organization and salvage their Covifenz vaccine, Medicago has had to separate from troublesome shareholders. Despite this, the company announced in July 2020 that they would be keeping their distance from the shareholders. Consequently, Mitsubishi Tanabe Pharma has acquired PMI's shares, Medicago's parent company, and now holds a 100% stake in the laboratory. The Quebec government has stated that they do not plan to hold any shares in the laboratory, as they had considered in the past. Medicago's survival now depends on their ability to overcome production difficulties in the United States and Quebec.


Federal Health Minister Jean-Yves Duclos expressed disappointment in both Medicago's prospects and the $173 million CAD ($120 million EUR) invested in the company. He reiterated that neither the company nor the federal government anticipated potential complications with the WHO, despite PMI's presence in the capital being well-known.


For a long time, the pharmaceutical industry has been seen as an isolated environment, like a fortress. "They were just doing their business," Mr. Duclos admits. However, regarding their social, environmental, and governance responsibilities, "like many other business communities, they realize they have responsibilities beyond their economic contribution." Epidemiologist Gaston De Serres believes that, on the contrary, the leaders in the pharmaceutical industry are "pretending to be surprised, but they are aware that the World Health Organization has problems.


Violation of the Tobacco Control Framework Convention.


Therefore, local anti-tobacco advocates alerted the federal government when investing in Medicago in the fall of 2020, reminding them of Canada's commitment to the Framework Convention on Tobacco Control (FCTC) international treaty. FCTC Article 5.3 outlines the necessity of protecting public health policies from any influence by the tobacco industry, including at health department meetings or within companies.


The Tobacco industry, vaccines, and the government should not be confused with each other. We appreciate the expulsion of Philip Morris company from its partnership with Medicago," said Les Hagen, Executive Director of the Action on Smoking and Health Canada (ASH), "Tobacco companies are desperately trying to improve their poor public image by investing in the health sector." PMI's recent investments in the pharmaceutical industry (Fertin Pharma, OtiTopic, Vectura), as well as the widespread exploitation of the COVID-19 crisis by tobacco manufacturers, confirm their attempts at repositioning themselves.


Daniel Dorado, the Director of Corporate Accountability at the Tobacco Control Movement, stated that "Canada is considered to be a global leader in tobacco control. If Canada is vulnerable to interference from the tobacco industry, then many other countries are likely to be as well. The lessons learned by the Canadian government should encourage other political leaders to better consider their obligations under the FCTC Treaty.



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