Alvotech: Regulatory Setbacks Priced In, Biosimilar Strength Supports Buy Rating Despite Lowered Target

UBS analyst Ashwani Verma reiterated a Buy rating on Alvotech today and set a price target of $6.00.

Ashwani Verma has given his Buy rating due to a combination of factors, starting with the view that Alvotech’s sharp share price decline already reflects the recent regulatory setbacks. He believes the key FDA issues are centered on manufacturing and operations rather than safety or efficacy, and that management’s remediation plan should allow resubmission of all three major biosimilar applications by mid-2026 with potential approvals by year-end.

Verma also points to ongoing strength in Alvotech’s existing biosimilar franchises, particularly the Humira and Stelara copies, which benefit from rising global biosimilar adoption and improving U.S. market access. While he has reduced his price target to $6 from $10 to reflect delayed launch timelines and a more conservative sales outlook, he still sees meaningful upside from current levels as regulatory visibility improves and the market begins to price in eventual approvals and commercial ramp-up.