BRIEF: Gavi seeks to claw back $224 million prepayment from Clover

Biotechnology firm Clover Biopharmaceuticals Ltd. (2197.HK) said on Monday that it received an arbitration claim on June 6 seeking return of a $224 million prepayment from global vaccine alliance Gavi. Clover emphasized that based on the terms of the advance purchase agreement, the claim lacks merit.

The advance purchase agreement inked in 2021 stipulated that if Clover’s Covid vaccine should gained emergency use listing (EUL) approval from the World Health Organization (WHO), Gavi would procure 64 million doses from the company. The agreement also included an option for Gavi to purchase up to an additional 350 million doses.

However, delays in Clover’s vaccine development progress prompted the two parties to amend their agreement in September 2022. Despite that, delivery shortfalls persisted: as of 2025, Gavi reports having received just 12 million doses, a figure substantially below contracted volumes, driving its push for reimbursement of the prepayment.

Shares of Clover opened flat at HK$0.246 on Monday and were down slightly at the midday break. The stock is down around 60% from its 52-week high.

By Lau Chi Hang

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