Moderna to build mRNA production plant in Canada within two years

OTTAWA -

Massachusetts-based drug maker Moderna will build an mRNA vaccine manufacturing plant in Canada within the next two years, CEO Stephane Bancel said Tuesday.

The company has signed a memorandum of understanding with the federal government that will result in Canada hosting Moderna's first foreign operation. It's not yet clear how much money Canada has offered to Moderna for the project.

"I believe that this technology can allow Canada to be ready for the next virus," Bancel said at an announcement in Montreal.

"Whether it's a small outbreak, or a big pandemic, like the one we just saw -- God forbid -- Canada will be ready. We'll be ready on Canadian soil to make, in a matter of months, a new vaccine for a new emerging virus to protect the Canadian population."

The agreement will see Canada gain access to Moderna's mRNA "development engine" and get priority access to the doses. Bancel said Canada can also ask Moderna to shift its production lines to respond to a new or emerging threat.

It will also include a research and development component for a host of other conditions besides COVID-19, including the flu, heart disease, cancer and rare genetic disorders.

This new technology has already changed millions of lives, Bancel said, but over the next 10 to 20 years he believes it will change millions more.

Canada, whose life-sciences industry has been decimated over the last three decades, wants in on the action.

Prime Minister Justin Trudeau has promised to rebuild the industry, and the recent budget included a $2.2-billion, seven-year investment to grow the life-science and biotech sectors.

Almost half of that money targets companies that want to expand or set up vaccine and drug production in Canada. None of the COVID-19 vaccines to date have been made in Canada, leaving the country entirely reliant on imports to fill vaccine orders. As a result, Canada was slower out of the gate on immunizations than some of its counterparts who had domestic production. Canada also likely had to pay more per dose for some vaccines as well, although the federal government has not confirmed all details of its contracts.

Innovation Minister Francois-Philippe Champagne, who announced the news with Bancel in Montreal, said Canada's new commitment to life sciences and biotech companies is attracting a lot of attention from companies, including Moderna.

"It's no secret that every country in the world wants a COVID-19 vaccine made in their country," he said.

Bancel said similar agreements are now being negotiated with other countries as well.

The location of the new facility hasn't been determined, but Bancel said the availability of an educated workforce will be the main deciding factor. He said the design is done and they'll need to start hiring very soon so training can begin.

Currently Moderna's vaccine is made by Swiss drugmaker Lonza, at Lonza facilities in Switzerland and New Hampshire.

Mathew Clancy, a media relations manager for Conservative Leader Erin O'Toole, dismissed the announcement. He said the Conservatives have a "detailed" plan to partner with pharmaceutical companies to increase production in Canada.

"Justin Trudeau has repeatedly overpromised and failed to deliver when it comes to domestic vaccine manufacturing in Canada," said Clancy. "There is no reason for Canadians to believe that this facility will ever be built under Trudeau's leadership."

This is the second major deal Ottawa has made to get mRNA vaccines made in Canada in the last three months.

In May, Champagne said Ottawa would provide $199 million to Resilience Technologies in Mississauga, Ont., about half the cost of expanding its existing plant to make up to 640 million doses of mRNA vaccines every year.

Canada has also promised $126 million for a new National Research Council to build a biologics production plant in Montreal, that is set to make the Novavax vaccine, once it is approved.

Canada also promised more than $400 million to help Sanofi complete a $925-million expansion of its vaccine production plant in Toronto. The existing plant mainly makes flu vaccines, and the expansion will focus on that as well.

This report by The Canadian Press was first published Aug. 10, 2021.