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Alvotech (ALVO)
NASDAQ:ALVO
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Alvotech
(NASDAQ:ALVO)
Rating:50Neutral
Price Target:
$8.50
▲(2.04% Upside)
Alvotech (ALVO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.51B
Dividend YieldN/A
Average Volume (3M)427.85K
Price to Earnings (P/E)39.7
Beta (1Y)0.78
Revenue Growth98.37%
EPS GrowthN/A
CountryUS
Employees1,012
SectorHealthcare
Sector Strength52
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.03
Shares Outstanding301,805,660
10 Day Avg. Volume367,427
30 Day Avg. Volume427,854
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue6.91
Enterprise Value/Gross Profit12.87
Enterprise Value/Ebitda18.67
Forecast
1Y Price Target
$21.00Price Target Upside152.10% Upside
Rating ConsensusStrong 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 makes money primarily through the development, production, and commercialization of biosimilar products. The company generates revenue by selling its biosimilar medicines to healthcare providers, hospitals, and pharmaceutical companies. Key revenue streams include product sales, licensing agreements, and strategic partnerships with other pharmaceutical firms for the co-development and distribution of biosimilars. These collaborations often allow Alvotech to leverage existing marketing and distribution networks, thereby expanding its market reach and enhancing its revenue potential. Additionally, Alvotech may receive milestone payments and royalties as part of its collaborative agreements.
Alvotech Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance by Alvotech, with significant revenue growth, positive cash flow, and strategic market expansion. However, the lumpiness in licensing revenues and anticipated challenges in the U.S. market pose some concerns.Q2-2025 Updates
Positive Updates
Revenue Growth and Product Performance
Alvotech achieved a 30% year-on-year revenue growth in the first half of 2025, totaling $306 million, with strong product revenues of $205 million driven by increased sales of biosimilars to Humira and STELARA.
Positive Cash Flow and Operational Efficiency
The company generated $77 million of positive cash flow from operations in the first half, a net improvement of $161 million year-on-year, marking the strongest quarter for operating cash flow in Alvotech's history.
Biosimilar Market Expansion
Alvotech's biosimilar to Humira, SIMLANDI, achieved over 40% share of the U.S. Humira market, and its biosimilar to STELARA, SELARSDI, captured over 20% of the U.S. market with continued strong performance in Europe.
Strategic Partnerships and Acquisitions
Alvotech expanded partnerships with Advanz Pharma and Dr. Reddy's, licensed rights to multiple biosimilar candidates, and completed the acquisition of Ivers-Lee in Switzerland and the R&D operation of Xbrane in Sweden.
Negative Updates
Lumpiness in Licensing Revenues
Licensing revenues in the first half of 2025 were $101 million, down from $170 million in the first half of 2024, due to the timing of development milestone achievements.
Challenging U.S. Market Dynamics
The U.S. market for biosimilars to Humira is expected to become more challenging in the second half of the year, with a focus on value over volume.
Company Guidance
During the Alvotech Second Quarter 2025 Earnings Conference Call, the company provided detailed guidance on its financial performance and future expectations. The first half of 2025 showcased strong growth, with revenues increasing by 30% year-on-year to $306 million, driven by a 200% rise in product revenues, particularly from biosimilars to Humira and STELARA. Adjusted EBITDA reached $54 million, maintaining positive momentum for the fifth consecutive quarter. Despite expectations of a softer third quarter, the company anticipates a strong fourth quarter, bolstered by new product launches and milestone achievements. Alvotech also reported significant cash flow improvements, with $77 million generated from operations, and successfully reduced its capital costs by renegotiating its debt terms. The company's strategic focus remains on expanding its product reach, enhancing R&D efforts, and maintaining operational efficiency to support sustainable long-term growth.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.45
Neutral
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.30
Negative
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.40
Negative
| 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
Neutral
8.33
Price Trends
8.70
Negative
9.11
Negative
10.45
Negative
Market Momentum
-0.21
Negative
48.09
Neutral
36.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALVO, the sentiment is Neutral. The current price of 8.33 is below the 20-day moving average (MA) of 8.34, below the 50-day MA of 8.70, and below the 200-day MA of 10.45, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 36.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.58B | 40.20 | 6.38% | ― | 5.55% | 1145.24% | |
66 Neutral | $3.02B | 1,503.13 | 106.97% | ― | 9.81% | ― | |
64 Neutral | $2.80B | 5.96 | 47.53% | ― | -2.48% | ― | |
54 Neutral | $1.18B | 64.45 | -9.28% | ― | 26.66% | -419.55% | |
51 Neutral | $7.95B | -0.40 | -42.50% | 2.21% | 22.29% | -1.85% | |
51 Neutral | $3.12B | ― | -1.32% | 5.06% | -2.32% | 35.46% | |
50 Neutral | $2.51B | 39.69 | 128.44% | ― | 98.37% | ― |
* Healthcare Sector Average
Performance Comparison
ALVO
Alvotech
8.33
-2.77
-24.95%
DVAX
Dynavax
10.06
-0.81
-7.45%
PRGO
Perrigo Company
22.65
-2.85
-11.18%
SUPN
Supernus Pharmaceuticals
46.00
12.09
35.65%
HCM
HUTCHMED
15.97
-1.32
-7.63%
AMRX
Amneal Pharmaceuticals
9.62
1.16
13.71%
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.