Alvotech (ALVO) Jefferies 2024 Global Healthcare Conference summary

Company strategy and business model

• Focuses exclusively on biosimilars, with 11 disclosed assets and many more in early stages.

• Operates a vertically integrated platform, handling all stages from cell line development to fill and finish in-house.

• Employs a global B2B commercial model, partnering with 19 world-class companies to mitigate commercial risk and accelerate revenue.

• Achieves early revenue through milestone payments, often covering R&D costs via license fees from partners.

• Maintains a lean administrative structure, with 90% of nearly 1,000 employees in R&D, manufacturing, and quality.

Market presence and partnerships

• Products launched in the US, Europe, Canada, Japan, Australia, and other global markets.

• Recent partnerships include Quallent (Cigna) for AVT02 private label in the US and Dr. Reddy for AVT03.

• Teva is the largest partner in the US, with seven products in collaboration.

• Portfolio addresses a $163 billion market, with most products approved or in late-stage trials in major regions.

• Continues to expand partnerships and is in discussions for Keytruda (pembrolizumab) collaborations.

Product pipeline and differentiation

• AVT02 is the only high-concentration interchangeable adalimumab biosimilar in the US, with exclusivity until at least May 2025.

• AVT04 (Stelara biosimilar) is first to market in Europe, Canada, and Japan, with limited competition for months to years.

• AVT06 (aflibercept) aims to be first to file high-dose biosimilar globally, with low-dose filing planned this year.

• AVT05 targets a $3 billion market with minimal competition, aiming for first approval.

• Pipeline includes denosumab, omalizumab, vedolizumab, pembrolizumab, and three undisclosed assets, with global launch ambitions.