Alvotech Announces Record Revenues and Adjusted EBITDA for Q2 and H1 2024

Alvotech, a prominent global biotech company focused on developing and manufacturing biosimilar medicines, reported its unaudited financial results for the first half of 2024. The firm demonstrated substantial growth and reached significant milestones during this period.

Alvotech’s total revenues for the first six months of 2024 soared to $236 million, marking an over ten-fold increase compared to the same period in the previous year. This remarkable growth was driven by both product and license revenues. Product revenues surged to $66 million, a 190% increase from the first half of 2023, with $53 million contributed by the second quarter alone. License and other revenues reached $170 million, with $145 million generated in the second quarter.

The company achieved a positive Adjusted EBITDA of $64 million for the first half of 2024, a significant improvement from the negative ($147) million recorded in the same period last year. The second quarter contributed $102 million to this figure.

Key milestones were achieved in the development and performance of Alvotech’s products. Notably, the European Union accepted the marketing application for AVT06, a biosimilar candidate to Eylea® (aflibercept).

Alvotech's Chairman and CEO, Robert Wessman, highlighted the company's exceptional performance in the first half of 2024. He pointed out the growth in product revenues due to the global launch of multiple products and record milestone revenues in the second quarter. The order book for biosimilar Humira in the U.S. expanded to around 1.3 million units, with revenues from these orders expected to be recognized primarily in the second half of the year. The launch of Stelara in Canada, Japan, and Europe exemplifies Alvotech’s global, multiproduct strategy.

Significant commercial and development milestones included positive top-line results from studies on AVT03, a proposed biosimilar to Prolia® and Xgeva® (denosumab). Additionally, Alvotech strengthened strategic alliances with STADA and Advanz Pharma to extend commercialization rights for various biosimilar products across multiple regions.

Corporate milestones included the conversion of a majority of subordinated convertible bonds into ordinary shares, resulting in the issuance of over 22 million new ordinary shares. Alvotech also secured a senior first lien term loan facility of $965 million, which allowed for the refinancing of existing debt, reducing the cost of capital and improving the debt profile.

Financially, Alvotech reported a cash position of $10.9 million, excluding $25 million in restricted cash, as of June 30, 2024. Borrowings totaled $1,055.9 million, including nearly $1 billion in current borrowings. Post-refinancing, the proforma cash balance was $153 million, excluding restricted cash, with gross borrowings adjusted to $1,035 million.

Product revenue for the first half of 2024 was $65.9 million, driven by sales of AVT02 in select European countries and Canada, the launch of AVT02 in the U.S., and pre-launch sales in Europe. License and other revenues were $169.7 million, a stark contrast to the negative revenue in the same period of 2023, attributed to the recognition of significant research and development milestones and performance milestones.

Expenses related to research and development slightly decreased to $97.5 million, while general and administrative expenses dropped to $29.6 million due to operational streamlining. The operating profit for the first half of 2024 was $43.5 million, a substantial increase from the operating loss in the same period last year.

Finance income decreased to $80.8 million, primarily due to changes in the fair value of conversion features of convertible bonds. Finance costs rose to $277.4 million, mainly due to the remeasurement of existing debt obligations and fair value changes in derivative liabilities.

Alvotech reported a net loss of $153.5 million for the first half of 2024, compared to a net loss of $86.9 million in the same period of 2023. However, the company achieved a profit of $65.2 million in the second quarter of 2024.

Overall, Alvotech's first half of 2024 was marked by record revenues, significant milestones in product development, and strategic financial maneuvers to enhance its market position and operational efficiency.