Alvotech (ALVO) AI Stock Analysis

• Market Cap: $2.54B
• Dividend Yield: N/A
• Average Volume (3M): 372.30K
• Price to Earnings (P/E): 38.7
• Beta (1Y): 0.71
• Revenue Growth: 98.37%
• EPS Growth: N/A
• Country: US
• Employees: 1,012
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.03
• Shares Outstanding: 301,805,660
• 10 Day Avg. Volume: 351,577
• 30 Day Avg. Volume: 372,295
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 6.91
• Enterprise Value/Gross Profit: 12.87
• Enterprise Value/Ebitda: 18.67
• 1Y Price Target: $18.67
• Price Target Upside: 117.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: $8.50 ▼(-1.05% Downside)

Alvotech's overall stock score reflects significant financial risks due to high leverage and negative equity, despite strong revenue growth and strategic market expansion highlighted in the earnings call. The technical analysis suggests a neutral outlook, while the high P/E ratio indicates potential overvaluation.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and product adoption, which supports long-term business sustainability.

Strategic Partnerships

Strategic partnerships enhance market reach and provide additional capital, supporting research and development efforts for sustained growth.

Market Expansion

Capturing significant market share in the U.S. strengthens Alvotech's competitive position and supports long-term revenue potential.

Negative Factors

High Financial Leverage

High leverage and negative equity pose financial risks, potentially limiting operational flexibility and impacting long-term stability.

Declining Revenue Growth

Declining revenue growth can indicate market challenges or competitive pressures, affecting future profitability and business prospects.

Challenging U.S. Market Dynamics

Increasing competition and market dynamics in the U.S. could pressure margins and limit growth opportunities in a key market.

Alvotech Business Overview & Revenue Model

Company Description

Alvotech (ALVO) is a biotechnology company focused on developing and manufacturing biosimilars, which are biologic medical products highly similar to already approved reference products. The company operates primarily in the pharmaceutical sector, specializing in monoclonal antibodies and other biologics. Alvotech aims to provide affordable access to high-quality medicines for patients worldwide by leveraging its proprietary technology platform and expertise in large-scale bioprocessing.

How the Company Makes Money

Alvotech generates revenue primarily through the development and commercialization of its biosimilar products. The company typically follows a model of partnering with established pharmaceutical firms to co-develop and market its biosimilars, sharing the revenue generated from product sales. Key revenue streams include upfront payments from licensing agreements, milestone payments as products progress through clinical trials and regulatory approvals, and royalty fees from sales of marketed products. Significant partnerships with major players in the pharmaceutical industry enhance its market reach and provide additional capital to support its research and development efforts, contributing to the overall earnings of the company.

Alvotech Financial Statement Overview

Summary

Alvotech's financial performance is concerning due to high leverage, negative equity, and weak cash flow generation despite improving profitability margins. The declining revenue growth and financial instability are significant risks.

Income Statement

Alvotech's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 60.59%, which is strong. However, the company is experiencing a negative revenue growth rate of -4.36%, indicating declining sales. The net profit margin has improved to 16.49% in the TTM, a significant recovery from previous losses, but the EBIT and EBITDA margins are relatively low at 18.18% and 23.71%, respectively. Overall, while profitability margins are improving, the declining revenue growth is a concern.

Balance Sheet

The balance sheet reveals significant financial leverage with a negative stockholders' equity, leading to a high debt-to-equity ratio of -4.06 in the TTM. This indicates potential financial instability. The return on equity is negative, reflecting losses in equity value. The equity ratio is also negative, suggesting that liabilities exceed assets. Overall, the balance sheet highlights financial risk due to high leverage and negative equity.

Cash Flow

Cash flow analysis shows challenges in generating positive cash flows. The TTM data indicates a negative free cash flow growth rate of -37.76%, and the operating cash flow is negative. However, the free cash flow to net income ratio is positive at 1.51, suggesting that the company is managing to convert some of its net income into free cash flow. Despite this, the overall cash flow position is weak, with negative operating cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	560.10M	489.68M	91.43M	83.03M	36.77M	66.62M
Gross Profit	300.68M	304.37M	-69.42M	18.93M	36.77M	66.62M
EBITDA	207.20M	-28.66M	-484.86M	-439.80M	3.99M	-125.67M
Net Income	63.36M	-231.86M	-551.73M	-513.58M	-101.50M	-170.04M
Balance Sheet
Total Assets	1.39B	1.22B	950.09M	828.44M	597.98M	474.42M
Cash, Cash Equivalents and Short-Term Investments	151.45M	51.43M	11.16M	66.43M	17.56M	31.69M
Total Debt	1.27B	1.19B	1.08B	805.10M	523.05M	676.85M
Total Liabilities	1.57B	1.63B	1.88B	1.39B	733.59M	1.34B
Stockholders Equity	-173.33M	-412.77M	-932.49M	-564.42M	-135.61M	-867.24M
Cash Flow
Free Cash Flow	-139.82M	-293.84M	-358.66M	-361.39M	-268.80M	-86.28M
Operating Cash Flow	-42.55M	-236.84M	-312.19M	-312.39M	-228.17M	-74.30M
Investing Cash Flow	-57.30M	-18.87M	-46.34M	-63.54M	-40.63M	-16.90M
Financing Cash Flow	237.43M	297.31M	301.32M	424.91M	254.83M	55.40M

Alvotech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 8.59 is above the 20-day moving average (MA) of 8.40, above the 50-day MA of 8.26, and below the 200-day MA of 9.72, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 18.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALVO.

Alvotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPN	―	$2.98B	46.47	6.38%	―	5.55%	1145.24%
ANIP	―	$2.02B	-121.36	-2.82%	―	38.68%	-160.14%
AMRX	―	$3.23B	1,607.81	―	―	9.81%	―
ALVO	―	$2.54B	38.73	―	―	98.37%	―
HCM	―	$2.59B	5.47	47.54%	―	-1.35%	―
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRGO	―	$2.97B	―	-1.32%	5.22%	-2.32%	35.46%

Alvotech Corporate Events

Alvotech Announces Key Leadership Changes in Commercial Operations

On October 22, 2025, Alvotech announced significant changes to its commercial team, with the departure of Anil Okay, the Chief Commercial Officer, who will become the CEO of Adalvo. Trisha Durant joins as Senior Vice President for Global Business Development and Commercial Operations, excluding North America, while Harshika Sarbajna and Agne Pasko take on key roles in North America and global business development, respectively. These leadership changes are expected to strengthen Alvotech’s commercial operations and strategic partnerships, enhancing its position in the biosimilar industry.

Alvotech’s AVT23 Biosimilar Gains EMA Acceptance

On October 6, 2025, Alvotech announced that the European Medicines Agency accepted a Marketing Authorization Application for AVT23, a proposed biosimilar to Xolair®, developed in collaboration with Kashiv BioSciences LLC. This milestone, in partnership with Advanz Pharma, marks a significant step towards expanding access to affordable biologic medicines for patients in Europe and other regions, potentially enhancing Alvotech’s industry positioning and stakeholder value.

Alvotech Gains Key Approvals for Biosimilars in Japan and Europe

On September 19, 2025, Alvotech announced that its partner in Japan, Fuji Pharma, received marketing authorization for three biosimilars from the Japanese Ministry of Health, Labor and Welfare. These biosimilars, AVT03, AVT05, and AVT06, target bone lesions, rheumatoid arthritis, and macular degeneration, respectively. Additionally, on September 22, 2025, Alvotech announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use recommended approval for AVT03 and AVT05 in the European Economic Area, pending a final decision by the European Commission. These developments are significant for Alvotech’s expansion in the Japanese and European markets, enhancing its industry positioning and offering potential benefits for stakeholders.

Alvotech Reports Strong H1 2025 Financials and Strategic Partnerships

Alvotech reported financial results for the first half of 2025, showing a significant increase in product revenue to $204.7 million compared to $65.9 million in the same period in 2024, driven by the expansion of AVT02 and the launch of AVT04 in multiple countries. Despite a decrease in license and other revenue, the company achieved a net profit of $141.7 million, a substantial turnaround from a net loss in the previous year. Alvotech also announced several strategic initiatives, including a collaboration with Dr. Reddy’s Laboratories for a Keytruda biosimilar and an expanded partnership with Advanz Pharma for additional biosimilar candidates, positioning the company for further growth in the biosimilars market.

Alvotech Expands Partnerships and Strengthens Leadership Amid Regulatory Progress

In recent developments, Alvotech has made significant strides in its business operations and strategic partnerships. On June 25, 2025, the company re-elected six members to its Board of Directors and appointed a new Chief Financial Officer, Linda Jonsdottir, who brings extensive experience in finance and corporate leadership. Alvotech has also expanded its commercial partnership with Advanz Pharma and entered into a collaboration with Dr. Reddy’s Laboratories for biosimilar candidates. Additionally, the company acquired Ivers-Lee Group to enhance its technical operations. Regulatory progress includes a positive opinion from the European Medicines Agency for a biosimilar to Eylea and successful study results for a biosimilar to Xolair. However, a recent FDA inspection highlighted some deficiencies in manufacturing operations, which Alvotech is addressing. Financially, Alvotech completed an oversubscribed offering of Swedish Depository Receipts and a private placement, raising substantial funds to support its growth initiatives.