Alvotech (ALVO) investor relations material

Strategic outlook and growth trajectory

• Transitioning from a two-product to a five or six-product portfolio by next year, driven by anticipated key approvals.

• Revenue guidance for 2025 is $600–700 million, with at least $200 million in EBITDA; milestones remain significant but will decrease as royalties grow.

• 2028 aspirational revenue target is $1.5 billion, with margin expansion expected as more products launch and scale is achieved.

• CapEx is projected at $70 million for 2025 and $25 million annually thereafter, with current capacity sufficient for growth through 2030.

• Global expansion continues, with sales in 70+ countries and plans to reach 90, leveraging strong local commercial partners.

Product portfolio and market performance

• Biosimilar Humira has achieved the second-largest US market share, with a 50% conversion rate and strong formulary presence.

• Biosimilar Stelara launched in the US with 40% conversion; not pursuing private label deals to ensure sustainable profitability.

• European and Japanese launches of key products have resulted in leading market shares, with continued volume growth expected.

• Upcoming launches include biosimilars for Prolia, Eylea, and Symphony, with early market entry and limited competition anticipated.

• Long-term pipeline includes 14 disclosed and 14 undisclosed assets, with major launches expected through 2028 and beyond.

Industry trends and operational strategy

• US pharma tariffs have minimal impact due to the out-licensing model; partners bear tariff costs, and biosimilars may be exempt.

• Regulatory changes are reducing biosimilar development costs and timelines, enabling more rapid pipeline expansion.

• Barriers to entry remain high despite lower clinical costs, due to technology, capital, and expertise requirements.

• China is seen as a potential partner but not a major competitive threat in Western biosimilar markets.

• Asset selection is driven by market size, competition, technology edge, and partner attractiveness.