Alvotech (ALVO) AI Stock Analysis

• Market Cap: $1.66B
• Dividend Yield: N/A
• Average Volume (3M): 642.54K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.92
• Revenue Growth: 55.38%
• EPS Growth: N/A
• Country: US
• Employees: 1,012
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.10
• Shares Outstanding: 301,805,660
• 10 Day Avg. Volume: 1,202,235
• 30 Day Avg. Volume: 642,537
• PEG Ratio: 0.24
• Price to Book (P/B): -8.59
• Price to Sales (P/S): 7.24
• P/FCF Ratio: -12.06
• Enterprise Value/Market Cap: 2.24
• Enterprise Value/Revenue: 6.50
• Enterprise Value/Gross Profit: 11.72
• Enterprise Value/Ebitda: 51.07
• 1Y Price Target: $10.67
• Price Target Upside: 24.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $5.00 ▼(-41.79% Downside)

Alvotech's overall stock score is primarily impacted by its financial performance and technical analysis. The company's high leverage and negative equity pose significant financial risks, while bearish technical indicators suggest continued downward pressure on the stock. The moderate valuation provides some support, but the lack of a dividend yield is a drawback. Despite strong revenue growth and strategic investments, regulatory and operational challenges weigh heavily on the outlook.

Positive Factors

Strong Revenue Growth

The robust revenue growth indicates Alvotech's expanding market presence and successful product adoption, supporting long-term business sustainability.

Expanding Global Market Presence

Global expansion enhances Alvotech's competitive position, diversifies revenue streams, and mitigates regional market risks, strengthening its market footprint.

New Product Approvals

New product approvals expand Alvotech's portfolio and market access, driving future revenue growth and reinforcing its position in the biosimilar industry.

Negative Factors

High Leverage and Negative Equity

High leverage and negative equity pose risks to Alvotech's financial health, limiting its ability to invest in growth and manage economic downturns.

Regulatory Challenges

Regulatory setbacks can delay product launches and revenue generation, impacting Alvotech's growth trajectory and market competitiveness.

Cash Flow Challenges

Persistent cash flow issues may hinder Alvotech's ability to fund operations and strategic initiatives, affecting long-term financial stability.

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 financial leverage, negative equity, and declining revenue growth. While profitability margins are improving, the overall financial risk remains high with weak cash flow generation.

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	571.16M	489.68M	91.43M	83.03M	36.77M	66.62M
Gross Profit	316.53M	304.37M	-69.42M	18.93M	36.77M	66.62M
EBITDA	72.66M	-32.27M	-493.67M	-439.80M	-18.03M	-177.88M
Net Income	69.53M	-231.86M	-551.73M	-513.58M	-101.50M	-170.04M
Balance Sheet
Total Assets	1.41B	1.22B	950.09M	828.44M	597.98M	474.42M
Cash, Cash Equivalents and Short-Term Investments	42.85M	51.43M	11.16M	66.43M	17.56M	31.69M
Total Debt	1.28B	1.19B	1.08B	805.10M	523.05M	676.85M
Total Liabilities	1.59B	1.63B	1.88B	1.39B	733.59M	1.34B
Stockholders Equity	-176.76M	-412.77M	-932.49M	-564.42M	-135.61M	-867.24M
Cash Flow
Free Cash Flow	-113.45M	-293.84M	-358.66M	-361.39M	-268.80M	-86.28M
Operating Cash Flow	-26.49M	-236.84M	-312.19M	-312.39M	-228.17M	-74.30M
Investing Cash Flow	-119.50M	-18.87M	-46.34M	-63.54M	-40.63M	-16.90M
Financing Cash Flow	68.36M	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: Neutral

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 6.23, above the 50-day MA of 7.48, and below the 200-day MA of 9.14, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 30.88 is Neutral, neither overbought nor oversold. The STOCH value of 20.22 is Neutral, 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
ANIP	64 Neutral	$1.80B	49.26	7.83%	―	48.87%	―
AMRX	63 Neutral	$3.56B	788.19	―	―	9.50%	―
SUPN	55 Neutral	$2.59B	―	-1.86%	―	4.54%	-130.59%
HCM	52 Neutral	$2.73B	5.76	47.54%	―	-1.35%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRGO	50 Neutral	$2.78B	―	-0.65%	5.55%	-2.55%	66.00%
ALVO	44 Neutral	$1.66B	23.84	―	―	55.38%	―

Alvotech Corporate Events

Alvotech’s Gobivaz® Receives European Approval as First Simponi® Biosimilar

On November 20, 2025, Alvotech, in partnership with Advanz Pharma, announced that their biosimilar product Gobivaz®, a version of Simponi® (golimumab), received marketing approval from the European Commission for use in the European Economic Area. This approval marks a significant milestone as Gobivaz® is the first biosimilar to Simponi® approved in Europe, enhancing Alvotech’s commercial presence in the region and expanding access to biologic medicines for immune-mediated diseases. The approval is based on comprehensive analytical and clinical data, further solidifying Alvotech’s position in the biosimilar market.

Alvotech Reports Strong Revenue Growth and New Biosimilar Approvals

On November 12, 2025, Alvotech announced its financial results for the first nine months of 2025, reporting a 24% increase in total revenues to $420 million compared to the previous year. Despite a decrease in adjusted EBITDA by 21% due to increased R&D investments, the company revised its full-year revenue outlook to $570-$600 million, anticipating strong growth driven by new biosimilar approvals in Japan and Europe. Alvotech’s strategic focus on expanding its biosimilar portfolio and maintaining operational excellence positions it for continued growth, with significant product launches expected in Q4 2025 and beyond.

UK High Court Supports Alvotech’s Biosimilar Launch Plans

On November 10, 2025, Alvotech announced that the UK High Court ruled in its favor, rejecting an injunction request from Regeneron Pharmaceuticals and Bayer. This decision allows Alvotech to continue manufacturing its biosimilar to Eylea (AVT06) in the UK, paving the way for its commercial launch in the European Economic Area and other regions after the expiry of the Supplementary Protection Certificates for Eylea on November 23, 2025. The ruling supports Alvotech’s strategy to enhance access to biosimilars and strengthen its position in the global biosimilar market.

Alvotech’s Gobivaz Biosimilar Gains UK Approval

On November 6, 2025, Alvotech announced that the UK Medicines and Healthcare products Regulatory Agency (MHRA) approved its biosimilar to Simponi, named Gobivaz, for various immune-mediated diseases. The approval covers multiple presentations of Gobivaz, enhancing Alvotech’s market positioning by broadening access to biologic treatments in the UK. This development, in partnership with Advanz Pharma, underscores Alvotech’s capabilities in biosimilar development and manufacturing, potentially impacting stakeholders by increasing treatment availability for conditions like rheumatoid arthritis and ulcerative colitis.

Alvotech Faces FDA Setback for AVT05 Biosimilar Application

On November 2, 2025, Alvotech announced that the U.S. FDA issued a complete response letter for its Biologics License Application for AVT05, a biosimilar candidate to Simponi®. The letter highlighted deficiencies in Alvotech’s Reykjavik facility, which must be resolved before approval. Despite the setback, the facility remains FDA-approved for current products. Alvotech has revised its 2025 financial outlook, anticipating lower revenues and adjusted EBITDA due to ongoing investments in facility improvements, which are expected to support future growth and product launches.

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.