Alvotech (ALVO)
NASDAQ:ALVO
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Alvotech
(NASDAQ:ALVO)
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Rating:46Neutral
Price Target:
$3.50
▼(-3.05% Downside)
Action:ReiteratedDate:04/01/26
The score is primarily constrained by elevated financial risk (high and rising debt, negative equity, and weak cash-flow history) and a bearish technical setup. Earnings call guidance and operational progress provide partial support, but regulatory timing risk in the U.S. and a high P/E keep the overall score in the mid-range.
Positive Factors
Large, advancing biosimilars pipeline
A broad 30-product biosimilars pipeline provides durable revenue optionality across multiple therapeutic areas. Over 2–6 months this supports sustained product launches, licensing milestones and partner deals, reducing single-product dependence and enabling multi-year commercial scale if approvals proceed.
Negative Factors
Weak balance sheet and rising debt
Elevated and increasing debt with negative shareholders' equity materially constrains financial flexibility. Over the medium term this raises refinancing, covenant and interest‑cost risks, limiting capacity to fund launches or remediate issues without dilutive or costly capital solutions.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, advancing biosimilars pipeline
A broad 30-product biosimilars pipeline provides durable revenue optionality across multiple therapeutic areas. Over 2–6 months this supports sustained product launches, licensing milestones and partner deals, reducing single-product dependence and enabling multi-year commercial scale if approvals proceed.
Read all positive factors
Alvotech (ALVO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.10B
Dividend YieldN/A
Average Volume (3M)514.19K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth26.02%
EPS GrowthN/A
CountryUS
Employees1,012
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.10
Shares Outstanding312,048,280
10 Day Avg. Volume326,938
30 Day Avg. Volume514,193
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 Cap2.18
Enterprise Value/Revenue4.08
Enterprise Value/Gross Profit6.82
Enterprise Value/Ebitda30.57
Forecast
1Y Price Target
$4.67Price Target Upside29.27% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.03
Revenue Forecast (FY)$616.56M
Alvotech Business Overview & Revenue Model
Company Description
Alvotech, 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...
How the Company Makes Money
Alvotech makes money primarily by developing biosimilars and monetizing them through commercialization partners and direct supply arrangements. Key revenue streams include: (1) Product sales and supply revenue: Alvotech manufactures biosimilar dru...
Alvotech Earnings Call Summary
Earnings Call Date:Mar 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Neutral
The call presented a mix of strong commercial and financial progress—21% revenue growth, 27% EBITDA growth, broadened partnerships, multiple non-U.S. approvals/launches, a large 30-product pipeline and successful capital raises—tempered by a material regulatory setback in the U.S. (CRLs/PAAL tied to an FDA inspection) that requires resubmission and increases near-term timing risk for U.S. revenue. Product-margin pressures, quarter volatility in cash flow, elevated borrowings and balance-sheet adjustments also add short-term risk. Management outlined concrete remediation steps, dual-sourcing initiatives, and clear operational priorities, which mitigate but do not eliminate near-term execution and timing uncertainty.Positive Updates
Top-line and EBITDA Growth
Total revenues increased ~21% year-over-year to $593 million in 2025 and adjusted EBITDA rose 27% to $137 million (23% margin), reflecting strong licensing contributions and expanding commercial footprint.
Negative Updates
FDA Complete Response Letters and PAAL for U.S. BLAs
In Q4 2025 Alvotech received complete response letters and a post-application action letter from the FDA for four active U.S. BLAs (Simponi, Simponi Aria, Prolia/Xgeva, Eylea) related to inspection observations at the Reykjavik facility; resubmission and demonstration of sustained corrective effectiveness are required, and a follow-up FDA inspection remains possible.
Read all updates
Q4-2025 Updates
Positive
Negative
Top-line and EBITDA Growth
Total revenues increased ~21% year-over-year to $593 million in 2025 and adjusted EBITDA rose 27% to $137 million (23% margin), reflecting strong licensing contributions and expanding commercial footprint.
Read all positive updates
Company Guidance
Alvotech reaffirmed 2026 financial guidance of $650–$700 million in revenues and $180–$220 million in adjusted EBITDA (the low end assumes no U.S. launches), saying operating performance will be back‑end loaded into Q4 and the company is targeting operating cash‑flow positivity by year‑end 2026; management also expects to resubmit affected U.S. BLAs in Q2 2026 with potential FDA decisions before year‑end. For context, 2025 results were $593 million total revenues (21% y/y), $137 million adjusted EBITDA (23% margin), 61% full‑year gross margin and Q4 revenues of $173 million (up 13% y/y) where licensing made up 75% of Q4 revenue, lifting Q4 gross margin to 66% and adjusted EBITDA to $69 million (40% margin) while Q4 product revenues were $43 million with a -37% product margin; 2025 operating cash flow was +$7 million (Q4 -$28 million). Balance‑sheet and liquidity metrics highlighted include year‑end cash of $172 million (up from $51 million opening), inventory up $92 million, non‑current assets +19%, deferred tax asset down $130 million, trade receivables down $70 million, net borrowings / financing activity of ~$207 million in Q4, a ~$300 million capital raise (including a $108 million convertible and $100 million senior term loan), net interest of $35 million in Q4, and net debt/adjusted EBITDA leverage of 9.3x.Alvotech Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
22
Negative
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 586.32M | 489.68M | 91.43M | 83.03M | 36.77M |
| Gross Profit | 350.76M | 304.37M | -69.42M | 18.93M | 36.77M |
| EBITDA | 323.39M | -32.27M | -493.67M | -439.80M | -18.03M |
| Net Income | 27.92M | -231.86M | -551.73M | -513.58M | -101.50M |
Balance Sheet | |||||
| Total Assets | 1.49B | 1.22B | 950.09M | 828.44M | 597.98M |
| Cash, Cash Equivalents and Short-Term Investments | 172.36M | 51.43M | 11.16M | 66.43M | 17.56M |
| Total Debt | 1.45B | 1.19B | 1.08B | 805.10M | 523.05M |
| Total Liabilities | 1.77B | 1.63B | 1.88B | 1.39B | 733.59M |
| Stockholders Equity | -284.49M | -412.77M | -932.49M | -564.42M | -135.61M |
Cash Flow | |||||
| Free Cash Flow | -114.67M | -293.84M | -358.66M | -361.39M | -268.80M |
| Operating Cash Flow | -50.20M | -236.84M | -312.19M | -312.39M | -228.17M |
| Investing Cash Flow | -104.22M | -18.87M | -46.34M | -63.54M | -40.63M |
| Financing Cash Flow | 270.83M | 297.31M | 301.32M | 424.91M | 254.83M |
Alvotech Technical Analysis
Negative
3.61
Price Trends
3.91
Negative
4.51
Negative
6.26
Negative
Market Momentum
-0.06
Negative
48.44
Neutral
54.61
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 3.61 is above the 20-day moving average (MA) of 3.48, below the 50-day MA of 3.91, and below the 200-day MA of 6.26, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 54.61 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 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.87B | 14.40 | 15.55% | ― | 43.78% | ― | |
58 Neutral | $4.18B | 16.36 | -115.31% | ― | 7.64% | ― | |
56 Neutral | $2.80B | -173.57 | -2.73% | ― | 8.63% | -150.75% | |
53 Neutral | $1.57B | -0.34 | -35.16% | 8.48% | -2.75% | -761.90% | |
53 Neutral | $2.34B | ― | 41.38% | ― | -12.78% | 1119.53% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $1.10B | -3.30 | -11.92% | ― | 26.02% | ― |
* Healthcare Sector Average
ALVO
Alvotech
3.52
-4.42
-55.67%
PRGO
Perrigo Company
11.39
-13.31
-53.88%
SUPN
Supernus Pharmaceuticals
48.63
17.69
57.18%
ANIP
ANI Pharmaceuticals
82.32
11.50
16.24%
HCM
HUTCHMED
13.22
-1.38
-9.45%
AMRX
Amneal Pharmaceuticals
13.11
5.89
81.58%
Alvotech Corporate Events
Alvotech Posts Strong 2025 Growth, Adds Approvals and New CEO as Biosimilar Pipeline Expands
Mar 19, 2026
Alvotech, a Luxembourg-based biosimilars specialist founded by Robert Wessman, has built a global commercial footprint via strategic partnerships spanning the U.S., Europe, Japan, China and other key markets. Its portfolio includes biosimilars to ...
Alvotech Discloses Intra-Group Transfer of 2.7 Million Shares Within Aztiq Group
Feb 27, 2026
On February 27, 2026, Alvotech reported that a major shareholder group restructured its internal holdings in the company. According to disclosures filed with Luxembourg’s financial regulator, ATP Holdings ehf., a party closely associated wit...
Alvotech Hits Pivotal Milestone With Positive PK Data for Entyvio Biosimilar AVT80
Feb 5, 2026
On February 5, 2026, Alvotech reported positive top-line results from a pivotal pharmacokinetic study of AVT80, its proposed subcutaneous biosimilar to Takeda’s Entyvio (vedolizumab), used to treat ulcerative colitis and Crohn’s diseas...
Alvotech Strikes Sandoz Biosimilar Supply and Commercialization Deals in Canada, Australia and New Zealand
Feb 2, 2026
On February 2, 2026, Alvotech announced supply and commercialization agreements with Sandoz covering multiple biosimilar candidates in Canada, Australia and New Zealand, further formalized in a Form 6-K filing with the U.S. Securities and Exchange...
Alvotech Finalizes Global Patent Settlement for Eylea Biosimilar, Clears Path for 2026 Launches
Jan 29, 2026
On January 29, 2026, Alvotech reported that it had entered into a licensing and settlement agreement with Regeneron and Bayer, resolving all remaining global patent disputes over its biosimilar to Eylea 2mg (aflibercept 40 mg/mL), which is already...
Alvotech Corrects Disclosure on December 2025 Insider-Related Share Transactions
Jan 7, 2026
On January 6, 2026, Alvotech announced that ATP Holdings ehf., a company closely associated with CEO and chairman Róbert Wessman, had reported to the Luxembourg financial regulator the acquisition of 4,812,257 Alvotech shares on December 17, ...
Alvotech Reports Major Insider-Related Share Purchases Filed in Luxembourg
Jan 7, 2026
On January 6, 2026, Alvotech disclosed insider-related share purchases reported to Luxembourg’s financial regulator, indicating increased ownership by entities closely associated with the company’s leadership. Alvogen Lux Holdings S.a....
Alvotech Founder Róbert Wessman to Hand CEO Role to Lisa Graver in Planned Q1 2026 Succession
Jan 6, 2026
On January 6, 2026, Alvotech announced a planned senior leadership transition following a long-prepared CEO succession process, with founder and current CEO Róbert Wessman set to step down from the chief executive role at the end of the first...
Alvotech Raises USD 100 Million Term Loan to Bolster Biosimilar Growth and 2026 Launches
Jan 2, 2026
On December 31, 2025, Alvotech announced it had secured a new USD 100 million senior term loan facility maturing in December 2027, replacing its previous working capital asset-based lending facility and providing full access to the funds throughou...
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.