2024-04-25 17:00:16 ET
Summary
- Alvotech has received FDA approval for its biosimilar drugs Simlandi and Selarsdi, allowing the company to compete in the biosimilar market for Humira and Stelara.
- The company's stock price initially dropped after the FDA rejected Simlandi in 2023, but has since recovered.
- Alvotech's outlook for 2024 and 2025 is positive, with projected revenues of $300-$400 million and potential growth in the biosimilar market.
- Q1 2024 earnings will be announced on May 22 and have the potential to exceed Wall Street's expectations, in my view, setting the company on a long-term path to valuation growth, although significant headwinds remain in play.
Investment Overview - Amid Heavy Losses, Alvotech Begins To Mobilise
When I last covered Alvotech ( ALVO ) in a note for Seeking Alpha nearly 18 months ago I was somewhat cautious, giving the Luxembourg headquartered, but mainly Iceland based generics/ biosimilar drug developer and marketer a "hold" recommendation.
This was in December 2022 - as I wrote at the time:
Alvotech joined the Nasdaq on June 16th 2022, completing a business combination with the Special Purpose Acquisition Company ("SPAC") Oaktree Acquisition Corp that included a $175m private investment in public equity ("PIPE") financing, and the company completed a dual listing on the Icelandic stock exchange days later.
Its founder and Chairman, Róbert Wessman, has an impressive track record in the Pharmaceutical industry, having also played an instrumental role in the growth of Actavis into a globally significant generic drug company before it became Allergan, and sold its generics business to Teva Pharmaceuticals ( TEVA ) in a $41bn deal. Wessman also founded Alvogen, a contract manufacturing organization ("CMO") based in the US which went to become another generics drug company of renown.
Alvotech's lead product is AVT02 (adalimumab), a biosimilar version of AbbVie's globally best-selling (>$20bn of revenues in FY22) autoimmune drug Humira.
Read the full article on Seeking Alpha
For further details see:
Alvotech: Consider Buying As Positive Q1 Earnings Release Likely