CLOVER BIO-B(02197): Clover Hong Kong has entered into a settlement agreement with the Global Vaccine Immunization Alliance.

CLOVER BIO-B (02197) announced that the Global Vaccine Alliance has issued a notice to terminate the pre-purchase agreement with Clover Biopharmaceuticals (Hong Kong) Limited (a wholly-owned subsidiary of the Company, "Clover Hong Kong") and requested the return of a prepayment amount of 224 million US dollars; and the Global Vaccine Alliance has applied for arbitration to demand the return of the prepayment amount. Clover Hong Kong and the Global Vaccine Alliance reached a settlement agreement on March 22, 2026, through which the arbitration will receive a comprehensive and final resolution, and all claims made by the Global Vaccine Alliance against Clover Hong Kong will be withdrawn and resolved after payment of the upfront amount as stated below. The settlement agreement between Clover Hong Kong is made solely for commercial purposes. The Company believes that, in conjunction with the overall arrangements focusing on the Group's current core strategic priorities, the settlement agreement is a prudent commercial solution that is in the best interests of the Company and its shareholders. The settlement agreement is expected to provide greater predictability for the Group's future development and its ability to achieve its potential core strategic priorities. The settlement agreement does not constitute, nor should it be interpreted as, Clover Hong Kong or the Global Vaccine Alliance admitting any liability in regards to any claims made during the arbitration. According to the settlement agreement, Clover Hong Kong has agreed to make the following payments to the Global Vaccine Alliance: a one-time upfront cash payment of 7 million US dollars; deferred cash payments of 1.5 million US dollars every six months in the future or a low single-digit percentage of the Group's cash balance (whichever is higher); and contingent payments linked to future cash income of the Group (including from financing, business development, and product sales) at a mid-to-high single-digit percentage level. The total future payments (i.e., deferred cash payments and contingent payments combined) will not exceed a mid-range figure in the tens of millions of US dollars; early payments within the 12-year period specified in the settlement agreement will be eligible for applicable discounts. The Group will continue to advance the development of its internally developed RSV respiratory syncytial virus vaccine candidates SCB-1022 (RSV + hMPV) and SCB-1033 (RSV + hMPV + PIV3) around its core strategic priorities and objectives to maximize their value, aiming to provide a more comprehensive and broad-spectrum protection to meet multiple significant unmet medical needs globally.