Fighting the flu with vaccines - and fast!

Producing vaccines to respond quickly to emerging diseases

June 23, 2011 — Quebec City, Quebec

Medicago Inc.

To effectively respond to emerging diseases quickly, the speed of producing a vaccine is critical. Traditional egg-based and cell production systems are effective, but Medicago has pioneered an innovative technology that can offer speed and cost advantages over these traditional systems.

Founded in 1999, Medicago develops vaccines based on two technologies: its plant-based Proficia and its Virus-Like Particles (VLPs). Proficia uses living plants as hosts for vaccine production, while VLPs are vaccines that resemble a virus and are recognized by the immune system, without the viruses’ genetic material to replicate.

Seeing its potential for scientific knowledge and innovation, IRAP collaborated with Medicago on several projects, providing extensive assistance, beginning with the drafting of their business plans on their VLPs and Proficia projects.

IRAP technical and business advisory services

Over time, Medicago has worked with many of IRAP’s Industrial Technology Advisors (ITAs), most notably, Alexandre Blais, Georges Lagacé and Pierre Trépanier. Each advisor contributed his own specific expertise and knowledge to Medicago’s projects and business strategy.

“Our ITA, Alexandre Blais, had complete training in agronomy and understood very well the technology of processing plant material. It’s a great advantage since we are not talking to financial administrators, but to scientists who understand the difficulties and possibilities of the technology,” said Dr. Louis-Phillipe Vézina, Chief Scientific Officer of Medicago. With Alexandre’s assistance, IRAP provided Medicago a first contribution of $15,000, which helped Medicago build the confidence of various investors, eventually obtaining an investment from France Luzerne.

Georges Lagacé provided initial advisory services to Medicago in terms of their business strategy. In attendance at Medicago’s first business meeting, Georges formulated suggestions for the firm to improve their business plan and prepare for a funding strategy.

Pierre Trépanier strongly supported using plant cells to tackle the growing problem of vaccines against influenza, since vaccines are produced much faster on tobacco plants than conventional approaches such as egg or animal cells. During project development, Pierre he advised the firm of the different regulatory processes, particularly on the release of vaccine lots and obtaining the essential reagents to control them. To further assist Medicago in relation to their competition, Pierre actively transmitted important, relevant information and results regarding their competitors, confirming Medicago’s technological edge in the industry.

Concrete results: lower production costs, increase in productivity, creation of new jobs

Because of IRAP assistance, and the advice of each ITA, Medicago has one of the lowest cost vaccine manufacturing technologies, and the shortest time required to produce a vaccine than the rest of the industry. “Our relationship with IRAP has helped us move forward and we have benefited from its continued guidance and contributions,” said Andy Sheldon, President and Chief Executive Officer (CEO) of Medicago.

A significant achievement for Medicago occurred in 2008, when their relationship with Philip Morris International, a Fortune 100 company, grew into a $15,975,000 private placement and partnership. Medicago has experienced exceptional growth in employment, expanding from 67 employees in October 2009 to 98 employees in October 2010. A total of 31 jobs were created during this year, with a portion of this growth attributed to IRAP’s assistance.

Today, Medicago is a well-established company already positioned among the top three companies in the field globally. The future path of the company is anticipated to involve the manufacturing of its own products based on molecules of which they own the rights.