Alvotech (ALVO) Q2 2024 earnings summary

Executive summary

• Achieved record total revenues of $236 million for H1 2024, over 10x year-over-year growth, with 84% generated in Q2.

• First-ever positive adjusted EBITDA in H1 and Q2 2024, reaching $64 million for H1 and $102 million for Q2, driven by global launches of Humira and Stelara biosimilars.

• Major growth from US Humira and ex-US Stelara launches, with a 1.3 million unit order book for Humira and significant order book expansion.

• Strategic focus on global biosimilar portfolio, operational scale-up, and cost efficiencies, supported by new commercial partnerships.

• Net loss for H1 2024 was $153.5 million, impacted by non-cash finance costs and early debt redemption.

Financial highlights

• Q2 2024 revenues: $199 million vs. $4 million in Q2 2023; H1 2024 revenues: $236 million vs. $20.3 million in H1 2023.

• H1 2024: $170 million milestone revenue, $66 million product revenue; Q2 milestone revenues: $145 million, product revenues: $54 million.

• H1 2024 operating profit: $43.4 million vs. -$189.1 million in H1 2023; adjusted EBITDA: $64 million vs. -$147 million.

• Q2 2024 adjusted EBITDA: $102 million vs. -$81 million in Q2 2023.

• Q2 product margins at 17%, expected to rise with volume and mix improvements.

Outlook and guidance

• 2024 revenue guidance: $400–$500 million, with $190–$200 million from milestone revenues; adjusted EBITDA forecasted at $100–$150 million.

• Product revenues expected to surpass milestone revenues in H2 2024, with Q4 as the strongest quarter.

• 2025 revenue projected at $600–$800 million, supported by robust order book and new launches.

• Major market filings for at least three additional biosimilar candidates expected in 2024.

• U.S. launch of Selarsdi (ustekinumab-aekn) expected in February 2025, with potential supply in Q4 2024.