Failed plan to produce COVID vaccine in Winnipeg generates multibillion-dollar lawsuit

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This article was published 20/06/2024 (866 days ago), so information in it may no longer be current.

An Alberta company has filed a multibillion-dollar lawsuit against an American manufacturer over a failed plan to produce tens of millions of COVID-19 vaccine doses at its Winnipeg plant.

Providence Therapeutic Holdings got in touch with officials at Emergent Biosolutions to discuss a deal to develop and produce the vaccine at the Winnipeg facility, operated by Emergent’s Canadian affiliate, in January 2021.

But a statement of claim filed June 13 by Alberta lawyers David Bishop and Ricki Johnson in Manitoba Court of King’s Bench on Providence’s behalf alleges Emergent misrepresented itself to secure an agreement to develop and make the vaccine.

The Alberta company claims in its court papers that it would have received “substantial financial benefit” had the deal proceeded as planned.

Providence is asking the court for an award of just over US$3 billion in damages from Emergent for alleged misrepresentation, negligence and breach of agreement. It is also seeking US$12 million in restitution for alleged unjust enrichment for payments for work that wasn’t properly done.

As Canada’s COVID-19 vaccine rollout moved slowly in early 2021, Manitoba’sthen-Progressive Conservative premier Brian Pallister said the province would agree to buy two million doses of vaccine from Providence, if approved for use in Canada.

Providence alleges Emergent claimed to have extensive experience in commercially manufacturing and developing mRNA vaccines, staff with years of pharmaceutical experience, that it could develop a process to produce and deliver “significant volumes” of the vaccine within six months, and that the Winnipeg facility could accommodate the work.

“They did not,” reads Providence’s court filing.

The company alleges Emergent’s Winnipeg facility could not accommodate commercial production volumes, lacked commercial development and manufacturing capabilities and did not have the required equipment.

Emergent, the lawsuit claims, did not have properly trained employees to carry out production work 24 hours a day.

“Emergent Canada and Emergent… were never able to produce a manufacturing process and were never able to deliver commercial batches during the entire term of the (service agreement),” reads the claim.

That’s despite Providence providing Emergent with proprietary information to develop batches of the vaccine, according to the lawsuit.

The lawsuit claims Emergent did not make a reasonable number of test batches to develop its manufacturing process and was negligent as it was unable to accurately inspect vaccine vials and find solutions when test batches were inconsistent.

Providence alleges Emergent has since used its knowledge to advance its business interests, including making mRNA product for other customers, calling any resulting profits “improperly gained.”

Providence lost its shot at streamlined regulatory approval before the end of 2022, it claims, alleging the company lost the opportunity to bring its vaccine to market in 2021 or 2022.

Assal Hellmer, a spokeswoman for Emergent, told the Free Press the company had yet to be served notice and claimed the lawsuit itself breached confidentiality agreements.

“We believe the allegations made in the public lawsuit are without merit and will defend it accordingly,” Hellmer said.

erik.pindera@freepress.mb.ca