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Alvotech
(NASDAQ:ALVO)
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Rating:54Neutral
Price Target:
$4.50
▲(47.06% Upside)
Action:Reiterated
Date:08/21/26
The score is held back primarily by weak financial quality—high leverage with negative equity and consistently negative cash flow—despite strong gross margins. Technicals are a clear positive with the stock trading above major moving averages and positive MACD. The latest earnings call adds moderate support from reaffirmed guidance and operational/regulatory recovery plans, but near-term execution and cash-interest burden remain meaningful risks. Valuation is difficult to justify on earnings due to losses and no dividend support.
Positive Factors
Broad biosimilar pipeline and regulatory progress
A broad pipeline diversifies future growth beyond current products, while complete BLA resubmissions and FDA review acceptance reduce regulatory uncertainty. Progress across several candidates can support recurring launches, partner economics and manufacturing utilization over multiple years.
Negative Factors
Highly leveraged balance sheet with negative equity
Heavy debt and negative equity leave limited balance-sheet protection if operating results remain uneven. Refinancing needs, covenant pressure and restricted financial flexibility could constrain investment in the pipeline or require additional dilutive or costly funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad biosimilar pipeline and regulatory progress
A broad pipeline diversifies future growth beyond current products, while complete BLA resubmissions and FDA review acceptance reduce regulatory uncertainty. Progress across several candidates can support recurring launches, partner economics and manufacturing utilization over multiple years.
Read all positive factors
Alvotech (ALVO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.73B
Dividend YieldN/A
Average Volume (3M)847.68K
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth-12.17%
EPS Growth-365.51%
CountryUS
Employees1,279
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.58
Shares Outstanding390,431,500
10 Day Avg. Volume655,921
30 Day Avg. Volume847,682
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)-5.03
Price to Sales (P/S)2.44
P/FCF Ratio-12.49
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$5.67Price Target Upside85.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.02
Revenue Forecast (FY)$621.81M
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 creating biosimilars and monetizing them through commercialization arrangements with partners and customers. Key revenue streams typically include: (1) Commercial product revenue tied to the sale of biosimilars in...
Alvotech Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational and regulatory progress (BLA resubmissions, FDA inspection closure, manufacturing recovery, pipeline breadth and successful financing) against material near‑term financial headwinds (a 31% decline in H1 revenue, lower adjusted EBITDA, compressed product margins, increased cash interest burdens and reliance on lumpy milestone revenue). Management reaffirmed 2026 guidance and expects a strong Q4 as supply normalizes, but near‑term results remain impacted by the prior manufacturing slowdown and timing of partner orders and milestones.Positive Updates
Regulatory Progress and FDA Interaction
Four BLAs (including proposed biosimilars to Simponi/Simponi ARIA and Prolia/Xgeva) were resubmitted in June 2026; FDA acknowledged the resubmissions as complete responses and set 6-month review goal dates. A routine FDA GMP surveillance inspection (May) was formally closed in July 2026 with a VAI classification and the Reykjavik facility remains an FDA‑approved manufacturing site.
Negative Updates
Significant Revenue Decline in First Half 2026
Total revenue for the first half of 2026 was $212 million, down 31% versus $306 million in H1 2025; Q2 revenue was $106 million (level with Q1) and down 39% year‑over‑year.
Read all updates
Q2-2026 Updates
Positive
Negative
Regulatory Progress and FDA Interaction
Four BLAs (including proposed biosimilars to Simponi/Simponi ARIA and Prolia/Xgeva) were resubmitted in June 2026; FDA acknowledged the resubmissions as complete responses and set 6-month review goal dates. A routine FDA GMP surveillance inspection (May) was formally closed in July 2026 with a VAI classification and the Reykjavik facility remains an FDA‑approved manufacturing site.
Read all positive updates
Company Guidance
Alvotech reaffirmed 2026 guidance of $650–700 million in total revenue and $180–220 million in adjusted EBITDA, expecting Q4 to be the strongest quarter as manufacturing returned to planned operating levels at the end of Q2 and safety stock is rebuilt; H1 results were $212 million total revenue (down ~31% YoY) with $106 million of product revenue, adjusted EBITDA of $47 million (22% margin), gross margin 54% and product margin ~8% (Q2: $106 million revenue, 51% gross margin, $23 million adjusted EBITDA). Cash on hand was $143 million at June 30 after an equity raise of ~ $165 million (plus an additional up-to‑$75 million term loan subsequently drawn, ~ $240 million total new financing), Q2 cash from operations was $17 million, net interest cost runs at about $37 million per quarter, CapEx in Q2 was $28 million and investment in intangibles was $17 million. Management reiterated that milestone/licensing revenues (historical context ~ $250 million p.a. but lumpy) and ramping product supply underpin the guidance, expects total 2026 R&D spend near $200 million with roughly 50% capitalized, and plans to enter 2027 with stronger margins and balance sheet deleveraging.Alvotech Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
18
Very Negative
Cash Flow
21
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 491.95M | 586.32M | 489.68M | 91.43M | 83.03M | 36.77M |
| Gross Profit | 297.38M | 350.76M | 304.37M | -69.42M | 18.93M | 36.77M |
| EBITDA | -1.43M | 323.39M | -32.27M | -493.67M | -439.80M | -18.03M |
| Net Income | -179.59M | 27.92M | -231.86M | -551.73M | -513.58M | -101.50M |
Balance Sheet | ||||||
| Total Assets | 1.59B | 1.49B | 1.22B | 950.09M | 828.44M | 597.98M |
| Cash, Cash Equivalents and Short-Term Investments | 142.75M | 172.36M | 51.43M | 11.16M | 66.43M | 17.56M |
| Total Debt | 1.45B | 1.45B | 1.19B | 1.08B | 805.10M | 523.05M |
| Total Liabilities | 1.78B | 1.77B | 1.63B | 1.88B | 1.39B | 733.59M |
| Stockholders Equity | -191.48M | -284.49M | -412.77M | -932.49M | -564.42M | -135.61M |
Cash Flow | ||||||
| Free Cash Flow | -300.25M | -114.67M | -293.84M | -358.66M | -361.39M | -268.80M |
| Operating Cash Flow | -198.70M | -50.20M | -236.84M | -312.19M | -312.39M | -228.17M |
| Investing Cash Flow | -146.18M | -104.22M | -18.87M | -46.34M | -63.54M | -40.63M |
| Financing Cash Flow | 335.93M | 270.83M | 297.31M | 301.32M | 424.91M | 254.83M |
Alvotech Technical Analysis
Positive
3.06
Price Trends
3.68
Positive
3.59
Positive
4.16
Positive
Market Momentum
0.18
Negative
68.85
Neutral
75.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALVO, the sentiment is Positive. The current price of 3.06 is below the 20-day moving average (MA) of 3.83, below the 50-day MA of 3.68, and below the 200-day MA of 4.16, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 68.85 is Neutral, neither overbought nor oversold. The STOCH value of 75.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.73B | 15.60 | 19.19% | ― | 30.90% | ― | |
66 Neutral | $2.20B | 136.31 | 1.43% | ― | -8.81% | -96.21% | |
60 Neutral | $5.72B | 36.00 | -326.75% | ― | 9.28% | 4917.17% | |
56 Neutral | $2.67B | -23.86 | -10.42% | ― | 24.85% | -264.42% | |
54 Neutral | $1.73B | -7.58 | 76.83% | ― | -12.17% | -365.51% | |
54 Neutral | $1.98B | -1.14 | -55.97% | 11.50% | -4.18% | -2138.82% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ALVO
Alvotech
4.43
-3.89
-46.75%
PRGO
Perrigo Company
14.25
-7.66
-34.96%
SUPN
Supernus Pharmaceuticals
45.85
1.42
3.20%
ANIP
ANI Pharmaceuticals
75.35
-14.97
-16.57%
HCM
HUTCHMED
12.63
-3.30
-20.72%
AMRX
Amneal Pharmaceuticals
17.91
8.63
93.00%
Alvotech Corporate Events
Alvotech Strikes $150 Million Biosimilar Deal With Lotus for U.S. and Key Asian Markets
Aug 21, 2026
On August 21, 2026, Alvotech announced a strategic licensing and commercialization agreement with Lotus Pharmaceutical for two biosimilar candidates, AVT34 to Imfinzi (durvalumab) and AVT87 to Hemlibra (emicizumab), in the U.S. and selected Asian ...
Alvotech Files H1 2026 Results and Schedules Business Update Call
Aug 19, 2026
Alvotech filed a Form 6-K with the U.S. Securities and Exchange Commission on August 19, 2026, reporting unaudited condensed consolidated interim financial statements for the six months ended June 30, 2026 and 2025. The filing also included manage...
Alvotech Gains FDA VAI Rating as Reykjavik Biosimilar Plant Clears Inspection
Jul 29, 2026
On July 29, 2026, Alvotech reported that the U.S. Food and Drug Administration has formally closed its May 2026 inspection of the company’s Reykjavik manufacturing facility. The regulator classified the site as Voluntary Action Indicated, si...
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...
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.