Canada has scrapped a deal with U.S. biotech company Novavax for the polio vaccine Covid-19, which was to be produced locally at a new Canadian facility, according to regulatory documents.

The Maryland-based company said it received notice last week that the Canadian government was "terminating with immediate effect" the January 2021 agreement to purchase millions of doses, AFP reported.

The reason, it said, is that the company "has not received regulatory approval for its Covid-19 vaccine using bulk antigen produced at Biologics Manufacturing Centre Inc" in Montreal by the end of 2024.

In early 2021. Ottawa had announced that Novavax would become the first company to manufacture the Covid-19 vaccine in Canada.

The government and the company signed a memorandum of understanding to establish a new manufacturing facility in Montreal.

The agreement was later amended to add a deadline of December 31, 2024, for production of the vaccine at the facility.

Novavax was an early leader in the global vaccine race, but fell behind after being hit by manufacturing and regulatory delays.

Last year, pharmaceutical companies reported a drop in sales of the vaccine against Covid-19.

The termination of the Novavax deal comes amid high tensions between Canada and the United States over U.S. President Donald Trump's threats to impose punitive tariffs on U.S. imports from their northern neighbour. | BGNES