Download PDF

1. Company Snapshot

1.a. Company Description

Alvotech, through its subsidiaries, develops and manufactures biosimilar medicines for patients worldwide.It offers biosimilar products in the therapeutic areas of autoimmune, eye, and bone disorders, as well as cancer.The company's lead program is AVT02, a high concentration formulation biosimilar to Humira to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT04, a biosimilar to Stelara to treat various inflammatory conditions comprising psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT06, a biosimilar to Eylea to treat various conditions, such as age-related macular degeneration, macular edema, and diabetic retinopathy; and AVT03, a biosimilar to Xgeva and Prolia, which is in the pre-clinical phase to treat prevent bone fracture, spinal cord compression, and the need for radiation or bone surgery in patients with certain types of cancer, as well as prevent bone loss and increase bone mass.


It also offers AVT05, a biosimilar to Simponi and Simponi Aria, which is in early phase development to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, ulcerative colitis, and other indications; AVT16, a biosimilar to an immunology product; AVT23, a biosimilar to Xolair, which is in late-stage development to treat nasal polyps; and AVT33, a biosimilar to an oncology product.The company was founded in 2013 and is headquartered in Reykjavik, Iceland.

Show Full description

1.b. Last Insights on ALVO

Breaking News: Alvotech is under investigation by Rosen Law Firm for potential securities claims due to allegations of issuing misleading business information. Shareholders who purchased Alvotech securities may be entitled to compensation through a contingency fee arrangement. No recent earnings release was found. Analysts at Wedbush and HC Wainwright have a buy and a hold rating on the stock respectively. Rosen Law Firm encourages investors to inquire about the investigation. Shareholders may be eligible for compensation if they purchased Alvotech securities.

1.c. Company Highlights

2. Alvotech's Q3 Earnings: A Strong Pipeline and Revenue Growth

Alvotech's Q3 financial performance was marked by licensing revenues of $81 million, with a gross margin of 69% and adjusted EBITDA of $14 million or 13% of revenues. For the first 9 months, the company delivered total revenues of $420 million, representing 24% growth year-on-year, with a gross margin of 59% and adjusted EBITDA of $68 million or 16% margin. The actual EPS came out at -$0.02, relative to estimates at $0.05, indicating a slight miss. The company's revenue growth has been extraordinary, with a 127% average annual growth rate from 2021 to 2024.

Publication Date: Nov -16

📋 Highlights
  • Substantial Investment and Growth: Alvotech invested $2 billion to build its biosimilar business, achieving 127% annual revenue growth (2021–2024) and projecting $570M–$600M revenue in 2025 with $130M–$150M adjusted EBITDA.
  • Regulatory and Operational Resilience: Despite a CRL for Simponi’s BLA, the FDA-approved Reykjavik facility remains operational, with 93% of 180+ commitments to address FDA concerns already fulfilled.
  • Strong Pipeline and Market Potential: The company has 5 approved biosimilars, 12 development programs, and targets $185B in originator markets, with AVT06 approved in Japan, UK, and EEA, and 50% Stelara biosimilar market transition expected by year-end.
  • Financials and Margin Expansion: Q3 licensing revenue reached $81M (69% gross margin), while first 9 months showed $420M total revenue (24% YoY growth) and $68M adjusted EBITDA (16% margin), supported by a $100M working capital option.
  • Global Launch Strategy and Guidance: AVT05, AVT03, and AVT06 launches in Europe this quarter, alongside 2026 growth drivers from new product launches and international diversification, reinforce a $20B addressable market and 2026 EBITDA growth guidance.

Revenue Growth and Guidance

Alvotech is guiding for approximately 20% growth in 2025, with projected revenues of $570 million to $600 million and adjusted EBITDA of $130 million to $150 million. The company's strong pipeline, with products AVT06, AVT05, and AVT03 scheduled for launch in Europe this quarter, is expected to drive growth. Analysts estimate next year's revenue growth at 36.8%. The company's cash balance at the end of September was $43 million, reflecting outflows connected to inventory buildup ahead of product launches, CapEx investments, and M&A activity.

Valuation and Growth Prospects

Alvotech's current valuation metrics indicate a 'P/S Ratio' of 3.05 and an 'EV/EBITDA' of 13.65. With a strong pipeline and expected margin recovery, the company's fundamentals remain strong. The expected growth in markets outside the U.S. will help balance its revenue profile. Based on committed orders for new launches and growth momentum with current products, Alvotech is well-positioned to deliver top-line and EBITDA growth in 2026.

Strategic Focus and Outlook

The strategic focus for the next 18 months is on execution, pipeline advancement, global launches, and cost optimization. Alvotech aims to achieve positive free cash flow and support its growth trajectory through working capital management. The company has a $20 billion addressable market for upcoming biosimilars and is confident in its growth prospects. The company will provide new guidance no later than Q4 '25 results.

Regulatory Update and Impact

Regarding the CRL from the FDA for its BLA for a proposed biosimilar to Simponi, Alvotech made over 180 commitments to the FDA to address observations, completing 93% of them. The company does not see a reduction in interest in its products from customers, who are aware of the facility's status. The revenue guidance revision is twofold: slowed production impacting 2025 revenues and licensing agreement timing shifts to 2026.

3. NewsRoom

Card image cap

Rosen Law Firm Encourages Alvotech Investors to Inquire About Securities Class Action Investigation – ALVO

Dec -04

Source: businesswire.com

Card image cap

Alvotech (ALVO) Faces Investor Scrutiny Amid Manufacturing Deficiencies Severely Impacting Assurances of 2025 Revenues and Adjusted EBITDA, Stock Tumbles 33% -- Hagens Berman

Dec -03

Source: prnewswire.com

Card image cap

New Strong Sell Stocks for Nov. 28

Nov -28

Source: zacks.com

Card image cap

Alvotech (ALVO) Faces Investor Scrutiny Amid Manufacturing Deficiencies Severely Impacting Assurances of 2025 Revenues and Adjusted EBITDA, Stock Tumbles 33% -- Hagens Berman

Nov -24

Source: globenewswire.com

Card image cap

Alvotech Announces Approval of AVT03, a Biosimilar to Prolia® and Xgeva® (denosumab) in the European Economic Area

Nov -24

Source: globenewswire.com

Card image cap

Bragar Eagel & Squire, P.C. Continues Investigations into Regencell, Beyond Meat, Alvotech, and Camping World on Behalf of Stockholders and Encourages Investors to Contact the Firm

Nov -22

Source: globenewswire.com

Card image cap

New Strong Sell Stocks for Nov. 21st

Nov -21

Source:

Card image cap

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Alvotech - ALVO

Nov -20

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.60%)

6. Segments

Biosimilar Medicines

Expected Growth: 11.6%

Alvotech's 11.6% growth in biosimilar medicines is driven by increasing demand for cost-effective alternatives to biologics, patent expirations of originator products, and growing adoption in emerging markets. Additionally, Alvotech's strong pipeline, strategic partnerships, and expanding global footprint are contributing to its rapid growth.

7. Detailed Products

Biosimilar medicines

Alvotech develops and manufactures biosimilar medicines, which are highly similar to existing biologics, offering a more affordable treatment option for patients.

Autoimmune disease treatments

Alvotech's pipeline includes biosimilars for autoimmune diseases, aiming to improve treatment outcomes and patient quality of life.

Oncology treatments

Alvotech develops biosimilars for cancer treatment, providing a cost-effective alternative to existing biologics.

Ophthalmology treatments

Alvotech's pipeline includes biosimilars for ophthalmology, focusing on treatments for age-related macular degeneration and other eye diseases.

Inflammatory bowel disease treatments

Alvotech develops biosimilars for inflammatory bowel disease, aiming to improve treatment outcomes and patient quality of life.

8. Alvotech's Porter Forces

Forces Ranking

Threat Of Substitutes

Alvotech's biosimilar products may face competition from other biosimilar manufacturers, but the company's strong R&D capabilities and partnerships with major pharmaceutical companies mitigate this threat.

Bargaining Power Of Customers

Alvotech's customers, primarily pharmaceutical companies, have limited bargaining power due to the company's unique biosimilar products and strong partnerships.

Bargaining Power Of Suppliers

Alvotech relies on a few key suppliers for raw materials and manufacturing services, but the company's strong relationships and diversified supply chain mitigate the bargaining power of suppliers.

Threat Of New Entrants

The biosimilar industry has high barriers to entry, including significant R&D investments and regulatory hurdles, making it difficult for new entrants to compete with Alvotech.

Intensity Of Rivalry

The biosimilar industry is highly competitive, with several established players competing for market share, but Alvotech's strong product pipeline and partnerships position the company for success.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 752.18%
Debt Cost 3.95%
Equity Weight -652.18%
Equity Cost 3.84%
WACC 4.66%
Leverage -115.33%

11. Quality Control: Alvotech passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dermapharm Holding

A-Score: 5.8/10

Value: 5.4

Growth: 6.1

Quality: 5.8

Yield: 5.6

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Almirall

A-Score: 5.0/10

Value: 4.3

Growth: 2.2

Quality: 4.3

Yield: 2.5

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Sobi

A-Score: 4.8/10

Value: 3.1

Growth: 7.3

Quality: 7.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Perrigo

A-Score: 4.6/10

Value: 7.5

Growth: 2.3

Quality: 2.3

Yield: 8.1

Momentum: 3.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Siegfried Holding

A-Score: 4.4/10

Value: 4.4

Growth: 7.4

Quality: 5.5

Yield: 0.6

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Alvotech

A-Score: 2.9/10

Value: 5.1

Growth: 5.8

Quality: 5.7

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.47$

Current Price

5.47$

Potential

-0.00%

Expected Cash-Flows