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Alvotech (ALVO)
NASDAQ:ALVO
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Alvotech
(NASDAQ:ALVO)
29Underperform
Alvotech (ALVO) vs. S&P 500 (SPY)
Market Cap
$2.48B
Dividend YieldN/A
Average Volume (3M)140.06K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth408.85%
EPS Growth59.22%
CountryUS
Employees1,012
SectorHealthcare
Sector Strength56
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)N/A
Shares Outstanding301,805,660
10 Day Avg. Volume94,642
30 Day Avg. Volume140,063
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.87
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-66.98
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.00Price Target Upside143.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Alvotech Business Overview & Revenue Model
Company DescriptionAlvotech, 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.
How the Company Makes MoneyAlvotech generates revenue primarily through the development, manufacturing, and commercialization of biosimilar drugs. These biosimilars are sold to healthcare providers, distributors, and pharmaceutical companies, either directly or through strategic partnerships. The company has established collaborations with various global and regional partners to enhance distribution, regulatory approval, and market access, which are crucial factors in driving its earnings. Alvotech’s revenue model relies on entering markets with expiring biologic patents, offering competitive pricing strategies to gain market share, and expanding its pipeline of biosimilar products to sustain growth.
Alvotech Financial Statement Overview
Summary
Alvotech faces significant financial challenges with persistent losses, high leverage, and negative equity, typical of a pharmaceutical company in heavy development and scaling phases. Despite strong revenue growth, profitability remains elusive, and the company must address its cash flow and debt situation to ensure financial stability and growth sustainability.Income Statement
Alvotech's income statement shows significant challenges with negative net income and EBIT margins in TTM (Trailing-Twelve-Months), indicating ongoing profitability issues. Despite a strong revenue growth rate of 302% from the previous year, the company struggles with high operating losses, as evidenced by negative EBIT and EBITDA margins. This suggests that while the company is growing revenue, it is not translating this growth into profitability.35
Negative
Balance Sheet
The balance sheet reflects a concerning financial position with a negative stockholders' equity and a high debt-to-equity ratio, indicating heavy reliance on debt financing. The equity ratio is also negative, underscoring a lack of equity buffer. The return on equity is negative, reflecting ongoing losses and financial instability.25
Negative
Cash Flow
The cash flow statement indicates negative free cash flow, although there is a slight improvement in free cash flow growth rate. Operating cash flow remains negative, highlighting challenges in generating cash from operations. The company's reliance on financing activities persists, which may be unsustainable long-term.40
Negative
| Breakdown | |||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 91.43M | 83.03M | 36.77M | 66.62M | Gross Profit |
| -69.42M | 18.93M | 36.77M | 66.62M | EBIT |
| -354.86M | -346.44M | -235.46M | -137.54M | EBITDA |
| -484.86M | -439.80M | 3.99M | -125.67M | Net Income Common Stockholders |
| -551.73M | -513.58M | -101.50M | -170.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 11.16M | 66.43M | 17.56M | 31.69M | Total Assets |
| 950.09M | 828.44M | 597.98M | 474.42M | Total Debt |
| 1.08B | 805.10M | 523.05M | 676.85M | Net Debt |
| 1.06B | 738.67M | 505.50M | 645.16M | Total Liabilities |
| 1.88B | 1.39B | 733.59M | 1.34B | Stockholders Equity |
| -932.49M | -564.42M | -135.61M | -867.24M |
| Cash Flow | Free Cash Flow | ||
| -358.66M | -361.39M | -268.80M | -86.28M | Operating Cash Flow |
| -312.19M | -312.39M | -228.17M | -74.30M | Investing Cash Flow |
| -46.34M | -63.54M | -40.63M | -16.90M | Financing Cash Flow |
| 301.32M | 424.91M | 254.83M | 55.40M |
Alvotech Technical Analysis
Negative
8.22
Price Trends
9.93
Negative
11.28
Negative
11.59
Negative
Market Momentum
-0.56
Negative
39.37
Neutral
31.19
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 8.22 is below the 20-day moving average (MA) of 8.28, below the 50-day MA of 9.93, and below the 200-day MA of 11.59, indicating a bearish trend. The MACD of -0.56 indicates Negative momentum. The RSI at 39.37 is Neutral, neither overbought nor oversold. The STOCH value of 31.19 is Neutral, 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 0 New Risks
Alvotech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.84B | 24.91 | 7.55% | ― | 8.94% | 5171.26% | |
63 Neutral | $2.70B | 69.41 | 5.06% | ― | -25.48% | -63.36% | |
57 Neutral | $1.39B | 64.85 | 4.48% | ― | 19.36% | ― | |
57 Neutral | $2.50B | ― | 106.97% | ― | 16.73% | -22.44% | |
53 Neutral | $3.50B | ― | -3.53% | 4.36% | -6.05% | -1677.05% | |
52 Neutral | $5.35B | 3.81 | -42.57% | 2.86% | 17.10% | 1.33% | |
29 Underperform | $2.48B | ― | 128.44% | ― | 408.85% | 59.22% |
* Healthcare Sector Average
Performance Comparison
ALVO
Alvotech
8.22
-6.16
-42.84%
DVAX
Dynavax
11.33
-0.31
-2.66%
PRGO
Perrigo Company
25.63
-6.51
-20.26%
SUPN
Supernus Pharmaceuticals
32.84
2.42
7.96%
HCM
HUTCHMED
15.00
-4.82
-24.32%
AMRX
Amneal Pharmaceuticals
7.97
1.32
19.85%
Alvotech Earnings Call Summary
Earnings Call Date:Mar 26, 2025
(Q3-2024)
| % Change Since: -28.83%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Positive
Alvotech reported significant revenue and margin growth, driven by strong product sales and pipeline advancements. While there were minor FDA inspection observations, these are considered easily manageable. The company faces some uncertainty in revenue timing but remains on track for substantial growth.Q3-2024 Updates
Positive Updates
Significant Revenue Growth
Total revenues for the first 9 months of 2024 increased nearly 9x compared to the same period in 2023, reaching $339 million.
Record Product Revenues
Product revenues for the first 9 months were $128 million, a 330% increase from the prior year, with the highest recorded quarter at $62 million.
Increased Product Margins
Product margins improved significantly, reaching 37% in Q3 2024 compared to 17% in Q2.
Strong Pipeline and Approvals
EMA acceptance for AVT03 and AVT05, and U.S. approval for an additional presentation of SELARSDI, a biosimilar to Stelara. AVT16 is now in patient trials.
Strategic Partnerships and Global Expansion
Ex-U.S. launches of AVT02 and AVT04 in multiple markets, with strong demand in the European Union. 1/3 of product revenues expected from outside the U.S. in 2024.
Negative Updates
FDA Inspection Observations
The U.S. FDA issued two observations during a GMP inspection of the Reykjavik manufacturing site, though they are deemed easily addressable.
Potential Revenue Timing Uncertainty
Product shipments, particularly for Humira, could spill over into Q1 2025, creating uncertainty in revenue timing.
Company Guidance
During Alvotech's Q3 2024 earnings call, guidance was highlighted with several key metrics demonstrating the company's robust performance and future expectations. Total revenues for the first nine months of 2024 reached $339 million, representing an almost ninefold increase compared to the same period in 2023, with product revenues climbing to $128 million. The company also reported milestone revenues exceeding $210 million year-to-date. The product gross margin showed significant improvement, more than doubling in the third quarter compared to the second quarter, reaching 37%. The company remains optimistic about continued margin expansion due to enhanced utilization of its manufacturing site and shifts in product mix, including the upcoming introduction of the Stelara biosimilar in the U.S. in 2025. Alvotech also reiterated its 2024 revenue guidance of $400 million to $500 million, emphasizing strong product and milestone revenue growth, with expectations of ramped-up shipments in the fourth quarter. Moreover, the company plans to leverage its extensive pipeline, including biosimilar candidates to Eylea and Simponi, to drive future growth, projecting up to one-third of product revenues from markets outside the U.S. by year-end.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.