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Canada should have known the World Health Organization likely wouldn’t accept Medicago’s COVID-19 vaccine over its close ties with tobacco giant Philip Morris — before deciding to invest millions of dollars of taxpayer money in the company.
The WHO told CBC News on March 25 the biopharmaceutical firm’s request for emergency use authorization of its Covifenz vaccine had “not been accepted” due to the company’s “linkage with the tobacco industry” and was now “on hold.”
Marlboro cigarette manufacturer Philip Morris International owns 21 per cent of Medicago shares and the WHO reiterated it has long had a “strict policy” on “not engaging with companies that promote tobacco” and that Medicago had been informed of the decision.
That leaves Medicago’s vaccine in limbo, after the federal government gave the company $173 million in 2020 to develop the vaccine, build a new production facility and purchase 20 million doses with an option for 56 million more.
Canada has approved the vaccine and is expected to distribute it next month, but it’s the only country so far and use of the shot worldwide would be severely hampered without WHO approval.
“Medicago now has to face the consequences of their choice,” said Dr. Gaston De Serres, a medical epidemiologist at the Quebec National Institute of Public Health (INSPQ).
“It’s not something they overlooked. It’s a decision they took understanding its implications, understanding this would come with big problems when dealing with WHO.”
Medicago knew working with WHO would be ‘difficult’
De Serres said the problems Medicago would have had in getting a COVID-19 vaccine with close ties to the tobacco industry approved by the WHO were “quite obvious,” and that the federal government “should have known” this issue would arise before investing in it.
“They wouldn’t have to work hard to know that Philip Morris was also an important shareholder,” he said.
“And WHO I think is fully entitled to say tobacco is the largest preventable cause of premature death and we don’t want to have anything to do with the tobacco industry.”
Since the beginning of the pandemic, there have been over six million confirmed deaths from COVID-19 worldwide. The WHO estimates tobacco kills more than eight million people each year.
Medicago produces its vaccine with the plant species Nicotiana benthamiana, a close relative of the tobacco plant that is used for pharmaceutical development — largely because of the high number of viruses that can successfully infect it.
But the WHO’s policy on Big Tobacco is no secret, and Canada signed the legally binding WHO Framework Convention on Tobacco Control in 2005 committing to “protect” public health policies “from the commercial and other vested interests of the tobacco industry.”
Medicago produces its vaccine with a plant species that is a close relative of the tobacco plant and is used for pharmaceutical development. (Turgut Yeter/CBC)
A spokesperson for the Public Health Agency of Canada (PHAC) told CBC News the federal government “studied the matter of its investment in Medicago carefully” and believes it is still “compliant with its treaty obligations related to tobacco control” with the WHO.
But Medicago told Global News last year that it even had trouble getting a “formal invitation” to attend WHO meetings and was never able to get in “through the big door.”
“WHO, although they love the product and the technology, they have to deal with the fact that we’re supported by tobacco,” Nathalie Landry, executive vice president of scientific and medical affairs at Medicago, said in the January 2021 interview.
“It’s difficult for Medicago to be associated with WHO.”
Can tobacco companies ‘redeem themselves’?
This also isn’t the first time a Canadian health product has faced challenges getting WHO approval over controversial tobacco industry ties.
The experimental Ebola drug ZMapp, which was partially developed in PHAC’s National Microbiology Lab, faced similar hurdles getting WHO authorization for emergency use during the devastating West Africa Ebola outbreak in 2014 before finally getting approved.
“We’ve seen this problem before with the WHO and it may be that they are going to need to look at this policy that they have around involvement with tobacco,” said Alison Thompson, an associate professor of bioethics at the University of Toronto.
“It’s not as simple anymore as saying we’re not going to get into bed with tobacco or nobody in tobacco should be profiting from this, because it’s one possible way for tobacco companies to redeem themselves.”
But Dr. Gary Kobinger, a Canadian immunologist and virologist at the Galveston National Laboratory at the University of Texas who helped develop Zmapp, said investors were similarly hesitant to fund the drug over its ties to the Reynolds American tobacco company.
The solution is to get Philip Morris out of Medicago, and if WHO still will not approve the vaccine … then it’s going to be an expensive lesson.– Cyntia Callard, Physicians for a Smoke-Free Canada
“I do understand the policy [the WHO] has in place. We all do. The question is, what is the solution?” he said.
“Can entities that were found guilty of causing so many human deaths be redeemed ? Can they produce live-saving solutions and contribute, with or without profit, to now save lives?”
Kobinger said he does not believe the tobacco industry is “essential to vaccine development,” but that if they do get involved in developing new shots they should at least ensure that they can get WHO approval before bringing them to market.
Tedros Adhanom Ghebreyesus, director-general of the WHO, speaks during a press conference in Geneva on Dec. 20, 2021. WHO officials now say they have yet to make a final decision on whether or not to continue reviewing the Medicago vaccine. (Salvatore Di Nolfi/The Associated Press)
WHO debating tobacco industry investment ‘trend’
WHO officials now say they have yet to make a final decision on whether or not to continue reviewing the Medicago vaccine, and are holding ongoing talks about how to better address the “general trend” of tobacco companies investing in the health industry.
When asked by CBC News during a virtual press conference Wednesday when a final decision on the shot could be made, Mariangela Simao, WHO’s assistant director-general for drug access, vaccines and pharmaceuticals, said it could be coming soon.
“We’re seeing an increasing trend globally of the tobacco industry diversifying their portfolio by engaging with the pharma industry,” she said.
“So this process is still on hold but we should have a decision on the continuation or not of the process in the next few weeks.”
WATCH | What the WHO’s decision on Medicago vaccine means for Canada:
Quebec’s Medicago COVID-19 vaccine faces WHO rejection over company’s tobacco ties
16 days ago
Duration 5:08
Canada Tonight medical contributor Dr. Samir Gupta speaks with Ginella Massa about Quebec’s Medicago COVID-19 vaccine facing rejection from the WHO and what it means for Canadians. 5:08
‘Throw away’ technology due to tobacco ties?
Alyson Kelvin, a virologist at the Vaccine and Infectious Disease Organization (VIDO) at the University of Saskatchewan, said that tobacco plants have been used for scientific discovery for years and could lead to a promising vaccine technology going forward.
“We understand that tobacco is probably the most dangerous plant in the world, causing the most deaths — but do we throw away all that technology because of that?” she said.
“Medicago’s technology is robust. It’s led to a fantastic vaccine with a good safety profile and good effectiveness. I feel that there’s a path forward that needs to be explored and it’s unfortunate that there are ties to tobacco companies.”
The efficacy of the vaccine against all variants studied prior to the emergence of Omicron was 71 per cent, and even slightly higher for the Delta variant at 75 per cent against infections of any severity, according to data released by Medicago in December.
International Development Minister Harjit Sajjan urged the WHO to approve the Medicago shot so that 20 million doses could be donated to the global vaccine-sharing initiative COVAX and used in countries with lower vaccination rates.
Medicago’s vaccine was 71 per cent effective against all variants prior to Omicron, and even slightly higher for the Delta variant at 75 per cent against COVID-19 infections of any severity, according to data released by the company in December. (Turgut Yeter/CBC)
But WHO officials said Wednesday that COVID-19 vaccine supply in lower income countries has actually “stabilized” this year due to donations from COVAX, despite the fact that one-third of the world still hasn’t had a first dose — including 83 per cent of Africa.
Thompson, the bioethicist, said if the WHO were to ultimately approve the Medicago shot, it would be one way for Canada to address the global inequities it has contributed to by vaccine hoarding.
“There are competing harms here — there’s the harm of allowing Philip Morris to potentially profit from this, but there’s also the harm of withdrawing the opportunity for millions of people to receive a vaccine,” she said.
“And I think I know which side I would come down on — I think the moral importance of saving a life is greater.”
Canada working on ‘solutions’ with Medicago
Innovation Minister François-Philippe Champagne said last week that the federal government is working with Medicago to find a solution “because we want that vaccine to be available for the world.
Conservative MPs called on Champagne and Health Minister Jean-Yves Duclos this week to answer to the health committee on the WHO decision and explain what the federal government’s plan is moving forward.
“There needs to be transparency when the government invests $173 million,” Conservative MP and health critic Michael Barrett said in a statement.
Innovation Minister François-Philippe Champagne said last week that the federal government is working with Medicago to find a solution ‘because we want that vaccine to be available for the world.’ (Adrian Wyld/The Canadian Press)
Champagne said the company is aware that its involvement with the tobacco industry presents a problem, and implied it was talking to Phillip Morris about divesting. Philip Morris International did not respond to a request for comment.
“With respect to shareholding, there’ll be solutions,” he said. “The company is aware and they’re working on that.”
Cynthia Callard, executive director for Physicians for a Smoke-Free Canada, said the government should try to resolve the situation with the WHO by ensuring Philip Morris is no longer an investor in the company — and hope for the best with the pending approval.
“Medicago is not a one off,” she said. “The solution is to get Philip Morris out of Medicago, and if WHO still will not approve the vaccine … then it’s going to be an expensive lesson.”
REGINA – Saskatchewan Opposition NDP Leader Carla Beck says she wants to prove to residents her party is the government in waiting as she heads into the incoming legislative session.
Beck held her first caucus meeting with 27 members, nearly double than what she had before the Oct. 28 election but short of the 31 required to form a majority in the 61-seat legislature.
She says her priorities will be health care and cost-of-living issues.
Beck says people need affordability help right now and will press Premier Scott Moe’s Saskatchewan Party government to cut the gas tax and the provincial sales tax on children’s clothing and some grocery items.
Beck’s NDP is Saskatchewan’s largest Opposition in nearly two decades after sweeping Regina and winning all but one seat in Saskatoon.
The Saskatchewan Party won 34 seats, retaining its hold on all of the rural ridings and smaller cities.
This report by The Canadian Press was first published Nov. 8, 2024.
Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.
The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.
Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.
The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.
Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”
“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.
“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”
Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.
The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.
It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.
Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.
It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.
“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.
Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.
The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.
Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.
The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.
“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.
Asked how long that environment could last, he said that’s out of Telus’ hands.
“What I can control, though, is how we go to market and how we lead with our products,” he said.
“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”
Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.
On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.
That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.
Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”
“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.
“We will continue to monitor developments and will take further action if our codes are not being followed.”
French said any initiative to boost transparency is a step in the right direction.
“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.
“I think everyone looking in the mirror would say there’s room for improvement.”
This report by The Canadian Press was first published Nov. 8, 2024.
Two years after the failed launch of a lending program, Canada Post is making another foray into banking services.
The postal service confirmed Friday that it will be offering a chequing and savings account in partnership with Koho Financial Inc.
The accounts will be launched nationally next year, though Canada Post employees will be offered early access as the product is tested.
Canada Post spokeswoman Lisa Liu said in a statement that there are gaps in the banking and savings products available that the Crown corporation looks to fill.
“Canada Post is uniquely positioned to fill some of these demands. Many of our existing financial products help meet the needs of new Canadians and those living in rural, remote and Indigenous communities, but we believe more is required.”
The MyMoney offering will be a spending and savings account where customers will be able to choose between features like high interest rates, cashback rewards and credit-building tools.
A document briefly posted to the Canadian Union of Postal Workers website said it would use a prepaid, reloadable Mastercard that will use money from the account like a debit card but offer the features of a Mastercard.
It said there will be a range of account tiers, including no-fee accounts and paid accounts with more features.
The plans comes after Canada Post launched a lending program with TD Bank Group in late 2022, only to shut it down weeks later because of what it said were processing issues.
Liu said the postal service has since been exploring other possible financial service offerings.
“Utilizing what we’ve learned, we are making a strategic shift from loans toward products more aligned with our core financial service products.”
The new account will be delivered with financial technology company Koho. A few months ago the company paired with Canada Post to allow its customers to deposit cash into their account through post offices.
Koho is also working to secure a Canadian banking license to expand its services.
This report by The Canadian Press was first published Nov. 8, 2024.
