Critics accuse province of rushing to buy vaccines following one week of talks with company - Action News
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Manitoba

Critics accuse province of rushing to buy vaccines following one week of talks with company

Manitoba agreed to spend $36 million to buy vaccines from aCanadian-made companyone week after it first reached out tothe firm which opposition politicians are callinga rushed decision.

Province says it spent months investigating domestic vaccines before formal talks

Opposition politicians are questioning whether Manitoba's deal to buy vaccines from a Calgary-based company came together too quickly, after a term sheet was signed one week following the start of formal talks. (Sandra Sanders/Reuters file photo)

Manitoba agreed to spend $36 million to buy vaccines from aCanadian-made companyone week after it first reached out tothe firm andopposition politicians are calling it a rushed decision.

Providence Therapeutics CEO BradSorensonwas unsure if Manitoba could buy their COVID-19 vaccines when he wasfirst contacted by a provincial official on Feb. 3.

"My initial comment back to them was, 'Are you sure you can?'" Sorensonsaid in an interview last Thursday with CBC News.

"They said we can't get anything internationally, but we believe we can buy domestically."

Sorensonsaid hetold the official he was happy to discuss, butwas focused on his plea to Ottawa for $150 million, which culminated in a letter to the federal government and a news conference on Feb. 5.

"I said, 'Hold on,I'll have something for you in a couple of days.'"

By the next week, Manitoba said it was interested in striking a deal, Sorenson said, "and so we began the process."

Within days, Providence and the Manitoba government signed a term sheetin which the province agreed to buy two million doses of the vaccine, which must still be approved by Health Canada.

The term sheet which represents Manitoba's intention to buy vaccines, not the final contract was signed on Feb. 10,one week after the parties first spoke.

Premier Brian Pallisterannounced the preliminary agreement on Feb. 11.

Manitoba Premier Brian Pallister said the province was looking into purchasing its own COVID-19 vaccine doses well before it entered into discussions with Providence Therapeutics. (John Woods/The Canadian Press)

"One week does not seem like enough time to do due diligence on an issue of this matter," NDP Leader Wab Kinew said.

"This deal with Providence has been touted so much by the premier, you would expect that they'd left no stone unturned and they'd analyze this thing from every single possible angle. You can't do that within a week."

He said Manitoba'spandemic emergency doesn't justify the fast turnaround.

"When you're talking about bringing an unproven vaccine to market, with a good chunk of public money at stake, you would really, really hope that every risk has been mitigated."

Regardless of whether Providence can delivervaccines, Manitoba is on the hook for a $7.2 millionnon-refundable down payment.

Due diligencelasted months: Pallister

Pallistersaid it's unfair to portray Manitoba's research into domestic vaccines as being confined to a matter of days.

"Due diligence didn't start a week ago," he said at a news conference Monday. "Our officials have told me that they were researching and looking at options for a significant number of weeks, if not months."

When asked what due diligence was conducted within theweek between the first formal conversationand pledging $36 million,Pallisterreferred to his government'spreparatory work four months earlier.

Pallister argued publicly thatManitoba cannot be dependent on international pharmaceutical companies developing vaccines, as they may not prioritize their Canadian contracts. Shortages have plagued Canada's vaccine rolloutearly this year.

As well, the premiersaid a dearth ofpersonal protective equipment early in the pandemicshowed the importance in Manitoba developing its own supply of what it needs.

The province beganlooking at smaller vaccine manufacturerslast year, Pallister said.

"Those companies have been researched by our people. We decided that we would enter into dialogue with Providence."

The premier's spokesperson added Manitoba isironing outdetails before signing the contract

"Manitobans are well protected under the normal due diligence for any government contract," she said by email.

Pallister's government is the first province to inka deal to directly buy a COVID-19 vaccinebypassing the federal government, whichassumed responsibilityfor vaccine procurement.

Further payments dependent on approvals

After a$7.2 milliondown payment, a summary ofthe proposed terms ofagreementshowsManitoba will pay another 40 per cent of the total price tag if and whenthe vaccine is approved by federal regulators, and the remaining 40 per cent upon delivery of the product.

Sorenson said he was flattered by Manitoba's inquiry.

"I can't express to you how refreshing it was," he said.

"I realize some people are saying this is great and some people are saying this is a terrible idea, I appreciate him showing the initiative," he said of the premier.

Providence Therapeutics CEO Brad Sorenson is confident his company can manufacture the 2 million doses of COVID-19 vaccine ordered by the Manitoba government before the end of the year. (Providence Therapeutics)

Sorenson said he spent months trying to get theattention of the federal government, whichrecently promised $4.7 million.He said the more than$2 million he has receivedso far is"negligible."

Manitoba Liberal Leader Dougald Lamont said he was once involved with efforts to bring vaccine manufacturing to Manitoba, as an employee of theInternational Centre for Infectious Diseases.

After seeing applications that were 700 to 800 pages long, he doesn't have the confidence in Providence,whosevaccine has yet to go through humanclinicaltrials.

"I cannot understandhow this particular company got picked [by Manitoba] when it's so threadbare," Lamont said of the company.

Sorenson said Providence is in talks with other provinces about coming on board, butnothing is official.

With files from Joanne Levasseur