Alvotech Eyes Growth As Product Revenue Soars And New Launches Approach - Will The Stock Follow?

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(RTTNews) - Alvotech (ALVO), a commercial-stage global biotech company specializing in the development and manufacture of biosimilar medicines, is making steady progress in its pipeline to drive future growth and diversification.

A biosimilar is a biological medicine that is highly similar to and has no clinically meaningful differences from an existing approved biological, or reference product. The first biosimilar drug approved in the U.S. was Zarxio, a biosimilar of Neupogen, developed by Sandoz/Novartis, which received the regulatory nod on March 6, 2015. Since then, the FDA has approved a total of 64 biosimilars, with the latest being Steqeyma, a biosimilar to Stelara, from Celltrion USA, approved on December 17, 2024.

Alvotech has two FDA-approved biosimilars - Simlandi, a biosimilar to Humira, and Selarsdi, a biosimilar to Stelara. The company's Humira biosimilar has been launched in 26 markets outside the U.S., whereas its Stelara biosimilar is available in 23 markets outside the U.S. The Humira biosimilar, under the brand name Simlandi, was launched in the U.S. in May 2024, while the Stelara biosimilar, under the brand name Selarsdi, is expected to be launched in the U.S. in February 2025.

The European Medicines Agency is reviewing AVT03, a proposed biosimilar to Prolia and Xgeva, as well as AVT05, a proposed biosimilar to Simponi.

The company started generating product revenue in 2022, following the successful launch of the Humira biosimilar in select European countries and Canada. In addition to product revenue, the company also generates revenue from long-term out-license contracts which provide the customer with an exclusive right to market and sell products in a particular territory once such products are approved for commercialization, as well as development and other service revenue.

In 2022, the total revenue amounted to $85.0 million, which included $24.8 million in product revenue, $58 million in license and other revenue, and $1.98 million in other income. The total revenue increased to $93.4 million in 2023, an increase of 10% from the previous year. The 2023 total revenue included $48.7 million in product revenue, $42.7 million in license and other revenue, and $1.95 million in other income.

In the first nine months of 2024, the company's total revenue reached $339 million, including $128 million in product revenue, $211 million in license and other revenue, and $0.16 million in other income. This compares to total revenue of $38.1 million during the same period in 2023.

With strong product revenue growth and promising upcoming product launches, the company is optimistic about driving substantial topline growth in the future.

Alvotech began trading on the Nasdaq Stock Market, under the ticker symbol "ALVO", on June 16, 2022, following a business combination with Oaktree Acquisition Corp. II (NYSE: OACB.U, OACB, OACB WS), a special purpose acquisition company.

In the last 1 year, ALVO has traded in a range of $9.15 to $18.00. The stock closed Tuesday's trading at $13.23, up 1.61%.