Chinese COVID-19 vaccine developer Clover files for IPO

The company claims to be a leading COVID-19 vaccine developer and potentially one of the first companies to commercialize a protein-based COVID-19 vaccine globally. Its vaccine candidate can survive at room temperature for at least two months and is expected to last even longer under refrigeration conditions, which might make it cheaper to distribute than available alternatives.

Several other Chinese biotech start-ups working on COVID-19 vaccines have received VC funding. Earlier this month, Suzhou Abogen Biosciences, which is developing an mRNA vaccine, raised RMB600 million ($92 million). Last August, VC-backed CanSino Biologics raised RMB5.2 billion in a Star Market IPO. The company’s single-dose viral vector vaccine is in phase-three clinical trials.

Clover secured $230 million in Series C funding as recently as February, achieving a post-money valuation of $930 million. The round was led by GL Ventures – a VC unit of Hillhouse Capital – and Temasek Holdings, with additional contributions from existing investors Oceanpine Capital, OrbiMed, and Delos Capital.

Hillhouse is the largest external shareholder with 18.43%, followed by Temasek on 10.61%. Delos, which led Clover’s RMB304.1 million Series B in 2019, has 7.85%. Lapam Capital, the co-lead on that round, owns 9.07%. This was followed by a RMB171.8 million extension. The company also received RMB10 million in angel funding in 2011 and a RMB62.8 million Series A in 2017.

The participants in these rounds are not disclosed in the prospectus. Clover merely identifies Qianhai FoF and Betta Capital as its backers, alongside the previously mentioned investors. The company’s website references a $24 million Series B extension led by Hillhouse.

Founded in 2007, Clover has built a product pipeline using its Trimer-Tag technology platform, which can trimerize proteins – binding together three molecules together – to target a broad range of diseases and biologic targets that depend on this chemical structure. These include RNA viruses – such as coronavirus, influenza, and HIV – and certain cancers and autoimmune disorders.

The company’s main COVID-19 candidate, SCB-2019, is in combined phase-two and phase-three global clinical trials. Clover believes it can produce more than one billion doses per year at peak capacity. The Coalition for Epidemic Preparedness Innovations (CEPI) has committed up to $328 million in funding.

The company is also working on a vaccine for the South African variant of COVID-19, which is currently at the preclinical stage. Other vaccines for rabies, respiratory syncytial virus (RSV), influenza, and HIV are at the discovery stage.

In addition, there are two oncology treatment candidates, of which one is in phase-one trials in China and Australia, and three Fc-fusion candidates targeting arthritis, eye disorders, and low platelet count. The arthritis treatment is in phase-three trials in China.

Clover generated RMB24.3 million in income for 2020, up from RMB16.9 million the previous year. Over the same period, its net loss widened from RMB48.6 million to RMB912.9 million, largely due to a substantial increase in R&D expenses.

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• Topics
• Greater China
• Healthcare
• IPO
• China
• Hillhouse Capital Management
• Temasek Holdings
• OrbiMed
• Oceanpine Capital
• Pharmaceuticals
• coronavirus
• covid-19