Business

Plant-based vaccine maker announces layoffs in Durham

Rows of a strain of tobacco native to Australia incubate in Medicago’s facility in Research Triangle Park.
Rows of a strain of tobacco native to Australia incubate in Medicago’s facility in Research Triangle Park.

A plant-based vaccine producer will lay off 60 people at its Research Triangle Park office, a new filing shows.

On Wednesday, the Canadian company Medicago sent a WARN notice to the N.C. Department of Commerce, a step that companies must take 60 days ahead of certain levels of job cuts.

The company is eliminating 62 positions, most located in Durham County. Two of the roles are remote. The layoffs will take place Dec. 26. Medicago told the state it is “restructuring its workforce to align with its changing business needs.”

Medicago uses plants to produce what it calls “virus-like particles” that mimic the structure of viruses and trigger an immune response in the body. The company says because the particles lack core genetic material they are non-infectious and unable to reproduce.

Health Canada, the Canadian version of the Food and Drug Administration, approved Medicago’s COVID-19 vaccine in February. It has not been approved in the United States. The company is also working toward approval for vaccines for the seasonal flu, norovirus, and rotavirus.

Medicago opened its RTP plant and greenhouses in 2010 using a grant from the U.S. Defense Advanced Research Projects Agency, or DARPA. At the time, the agency was looking for ways to make large quantities of vaccine to respond to epidemics, bioterrorist attacks and other public health emergencies.

The company employed about 200 people in RTP as of last December. Medicago also sent copies of its WARN Notice to Durham Mayor Elaine O’Neal and Durham County Board of Commissioners Chair Brenda Howerton.

WARNings

Under federal law, employers must file WARN reports at least 60 days ahead of time when they close a plant that impacts at least 50 employees or lay off at least 50 employees equaling one-third or more of their workforce.

This year, companies have filed 51 WARN notices in North Carolina that have eliminated 3,250 positions.

The WARN notice Medicago sent to the North Carolina Department of Commerce on Oct. 26.
The WARN notice Medicago sent to the North Carolina Department of Commerce on Oct. 26.

Within two days of a WARN notice, the state will deploy a Rapid Response team to help both the company and its soon-to-be former employees through the transition. Among the Rapid Response team’s goals, according to the state, is to inform employees of new opportunities, create a transition plan for the company, and strive to reduce absenteeism so production can continue until the layoffs become official.

This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work.

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This story was originally published October 27, 2022 at 10:59 AM with the headline "Plant-based vaccine maker announces layoffs in Durham."

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Brian Gordon
The News & Observer
Brian Gordon is the Business & Technology reporter for The News & Observer and The Herald-Sun. He writes about jobs, startups and big tech developments unique to the North Carolina Triangle. Brian previously worked as a senior statewide reporter for the USA Today Network. Please contact him via email, phone, or Signal at 919-861-1238.
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