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Alvotech (ALVO)
NASDAQ:ALVO
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Alvotech (ALVO) AI Stock Analysis

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ALVO

Alvotech

(NASDAQ:ALVO)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
$3.00
▼(-16.90% Downside)
Action:Reiterated
Date:06/17/26
The score is held back primarily by weak financial fundamentals—high leverage/negative equity and persistent cash burn—along with earnings-call risks tied to regulatory/throughput disruption and cash/interest burden. Offsetting factors include improving short-term technical momentum and reiterated 2026 guidance with a pathway to stronger 2027 performance, though valuation remains unsupported due to current losses and no dividend.
Positive Factors
Gross margins & scaled revenue
Sustained high gross margins around 60% and a materially larger revenue base indicate durable manufacturing economics and pricing power for biosimilars. Scale helps absorb fixed biologics manufacturing costs, supports partner economics, and underpins the path to stable, repeatable product-level profitability as launches accumulate.
Negative Factors
High leverage & negative equity
A capital structure with debt exceeding or near total assets and persistent negative equity materially constrains financial flexibility. Heavy leverage raises refinancing and covenant risk, magnifies interest burden, and increases probability of future dilutive financing or costly debt solutions that can impede long-term investment in launches and capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margins & scaled revenue
Sustained high gross margins around 60% and a materially larger revenue base indicate durable manufacturing economics and pricing power for biosimilars. Scale helps absorb fixed biologics manufacturing costs, supports partner economics, and underpins the path to stable, repeatable product-level profitability as launches accumulate.
Read all positive factors

Alvotech (ALVO) vs. SPDR S&P 500 ETF (SPY)

Alvotech Business Overview & Revenue Model

Company Description
Alvotech, along with its various subsidiaries, is dedicated to the global development and manufacturing of biosimilar pharmaceuticals. Its product offerings span key therapeutic categories, encompassing autoimmune conditions, eye disorders, bone d...
How the Company Makes Money
Alvotech primarily makes money by advancing biosimilar candidates through development and regulatory approval and then commercializing them—most commonly through partnerships—while leveraging its internal biologics manufacturing capabilities. Key ...

Alvotech Earnings Call Summary

Earnings Call Date:May 06, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: strong pipeline momentum, rising EBITDA margins, meaningful commercial traction (notably AVT02 market share), a strategic Fujifilm manufacturing partnership and constructive full-year guidance are clear positives. Offsetting these are a material Q1 revenue decline (-20% YoY) and low product margin (11%) driven by deliberate manufacturing slowdowns to address regulatory findings, along with negative operating cash flow, a modest cash balance ($64M) and substantial quarterly interest payments. The company emphasizes derisking for stronger 2027 growth, but near-term financial and regulatory execution risks remain.
Positive Updates
Pipeline and Regulatory Progress
Resubmissions of BLAs for biosimilars to Simponi, Eylea (high-dose and low-dose), Prolia and Xgeva are in the final stage of completion; EMA marketing authorization application submitted for AVT16 and AVT80 (Entyvio); AVT29 (high-dose Eylea) on track for EMA submission in 2026 and first patients enrolled in pivotal study supporting a 2028 U.S. submission.
Negative Updates
Quarterly Revenue Decline
Total revenues of $106 million in Q1 2026, a 20% decline year-over-year, driven primarily by reduced manufacturing throughput associated with facility improvements and deliberate slowdown to address regulatory findings.
Read all updates
Q1-2026 Updates
Negative
Pipeline and Regulatory Progress
Resubmissions of BLAs for biosimilars to Simponi, Eylea (high-dose and low-dose), Prolia and Xgeva are in the final stage of completion; EMA marketing authorization application submitted for AVT16 and AVT80 (Entyvio); AVT29 (high-dose Eylea) on track for EMA submission in 2026 and first patients enrolled in pivotal study supporting a 2028 U.S. submission.
Read all positive updates
Company Guidance
The company reiterated full‑year 2026 guidance of $650–700 million in revenues and $180–220 million of adjusted EBITDA, said Q4 2026 is expected to be the strongest quarter and reiterated the goal of positive free cash flow in Q4 2026, and flagged 2027 as a year of strong year‑on‑year growth with the potential for “healthy leverage.” Q1 2026 provided context for that outlook: total revenues $106M (‑20% YoY), product revenues $51M, licensing $55M, adjusted EBITDA $24M (23% margin), gross margin 57% and product margin 11%; cash at quarter‑end was $64M, operating cash flow was ‑$25M, net interest ≈$35M/quarter, CapEx $7M and intangibles investment $39M. Key operational guidance: resubmissions of BLAs slated after the ongoing FDA inspection (resubmission timing in Q2 with a target approval timeline into Q4), submissions for Entyvio and high‑dose Eylea planned in 2026, and added U.S. manufacturing supply from Fujifilm expected to begin in H2 2027.

Alvotech Financial Statement Overview

Summary
Scaled revenue base and strong ~60% gross margins, but overall financial quality is constrained by heavy leverage with persistent negative equity, ongoing negative operating/free cash flow (TTM OCF about -$123M; FCF about -$171M), and volatile bottom-line results (profit in 2025 followed by a TTM net loss with modest revenue decline).
Income Statement
54
Neutral
Balance Sheet
23
Negative
Cash Flow
28
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue559.42M586.32M489.68M91.43M83.03M36.77M
Gross Profit343.22M350.76M304.37M-69.42M18.93M36.77M
EBITDA51.83M323.39M-32.27M-493.67M-439.80M-18.03M
Net Income-80.73M27.92M-231.86M-551.73M-513.58M-101.50M
Balance Sheet
Total Assets1.42B1.49B1.22B950.09M828.44M597.98M
Cash, Cash Equivalents and Short-Term Investments63.83M172.36M51.43M11.16M66.43M17.56M
Total Debt1.46B1.45B1.19B1.08B805.10M523.05M
Total Liabilities1.70B1.77B1.63B1.88B1.39B733.59M
Stockholders Equity-282.31M-284.49M-412.77M-932.49M-564.42M-135.61M
Cash Flow
Free Cash Flow-210.47M-114.67M-293.84M-358.66M-361.39M-268.80M
Operating Cash Flow-123.17M-50.20M-236.84M-312.19M-312.39M-228.17M
Investing Cash Flow-130.01M-104.22M-18.87M-46.34M-63.54M-40.63M
Financing Cash Flow275.70M270.83M297.31M301.32M424.91M254.83M

Alvotech Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.61
Price Trends
50DMA
3.56
Negative
100DMA
3.63
Negative
200DMA
4.84
Negative
Market Momentum
MACD
-0.08
Positive
RSI
38.71
Neutral
STOCH
8.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALVO, the sentiment is Negative. The current price of 3.61 is below the 20-day moving average (MA) of 3.71, above the 50-day MA of 3.56, and below the 200-day MA of 4.84, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 38.71 is Neutral, neither overbought nor oversold. The STOCH value of 8.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALVO.

Alvotech Risk Analysis

Alvotech disclosed 95 risk factors in its most recent earnings report. Alvotech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may need to refinance all or a portion of our indebtedness and cannot assure you that refinancing will be available on commercially reasonable terms, or at all. Q4, 2023
2.
Termination or expiration of governmental programs or tax benefits, could adversely affect us. Q4, 2023
3.
We operate our main R&D and manufacturing facility in Iceland which is an island with a relatively limited number of ports of entry by sea or air which may impact logistics. Geologic activity, in particular volcanic eruptions could impact transport and cause disruptions to our supply chain or ability to export product. Q4, 2023

Alvotech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.87B19.9617.32%37.03%
64
Neutral
$2.81B-94.87-2.73%16.29%-145.12%
59
Neutral
$5.43B44.87-144.72%7.62%
53
Neutral
$1.97B49.8237.04%-12.78%1119.53%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
$1.41B-0.79-50.65%8.48%-3.62%-932.84%
48
Neutral
$1.11B-11.6635.22%-4.47%-178.26%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ALVO
Alvotech
3.28
-5.62
-63.15%
PRGO
Perrigo Company
10.22
-15.03
-59.53%
SUPN
Supernus Pharmaceuticals
48.46
14.50
42.70%
ANIP
ANI Pharmaceuticals
82.07
16.88
25.89%
HCM
HUTCHMED
11.07
-5.16
-31.79%
AMRX
Amneal Pharmaceuticals
17.01
8.59
102.02%

Alvotech Corporate Events

Alvotech Secures New $75 Million Term Loan to Strengthen Biosimilars Expansion
Jul 1, 2026
Alvotech, the Nasdaq-listed biosimilars specialist headquartered in Reykjavik, has bolstered its balance sheet with fresh debt financing as it seeks to scale its global operations. The company, which has recently resubmitted key Biologics License ...
Alvotech Raises $165 Million Through Share Offering and Concurrent Private Placement
Jun 18, 2026
On June 17, 2026, Alvotech closed an underwritten public offering of 26,066,667 ordinary shares at $3.75 each, including full exercise of the underwriters’ option, raising approximately $98 million in gross proceeds. Concurrently, the compan...
Alvotech Raises Over $150 Million in U.S. Equity Offering and European PIPE as It Resubmits Key Biosimilar BLAs
Jun 17, 2026
On June 15, 2026, Alvotech entered an underwriting agreement for a U.S. public offering of 22,666,667 ordinary shares at $3.75 per share and granted underwriters a 30-day option for 3,400,000 additional shares, which was fully exercised on June 16...
Alvotech Halts Use of ATM Prospectus Supplement While Keeping Jefferies Sales Agreement Intact
Jun 15, 2026
On June 15, 2026, Alvotech reported that it had suspended and terminated its at-the-market (ATM) prospectus supplement tied to an Open Market Sale Agreement with Jefferies LLC, originally dated June 14, 2024. The move means Alvotech will not issue...
Alvotech Wins FDA Review for Entyvio Biosimilar AVT16 as Q1 2026 Results Filed
Jun 8, 2026
Alvotech, a specialist in biosimilar development and manufacturing with a growing portfolio of approved products and late-stage candidates, partners with major drugmakers to extend its global reach in markets including the U.S., Europe, Japan, Chi...
Alvotech Clears Key FDA Inspection at Reykjavik Plant, Paving Way for 2026 BLA Resubmissions
May 11, 2026
On May 11, 2026, Alvotech reported that the U.S. Food and Drug Administration completed a routine cGMP surveillance inspection of its Reykjavik, Iceland manufacturing facility, which ended on May 8 with the issuance of a Form 483. The company said...
Alvotech Announces General Counsel Transition After Six-Year Tenure
May 4, 2026
Alvotech, a global biotech group specializing in biosimilar medicines and backed by a fully integrated development and manufacturing platform, has built a portfolio of five marketed biosimilars and a pipeline of nine disclosed candidates aimed at ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 17, 2026