Alvotech delivered exceptional financial performance in the first half of 2025, driven by robust biosimilar sales and strategic business expansion. The Iceland-based biotech company reported product revenue of $204.7 million for the six months ended June 30, 2025, representing a dramatic increase from $65.9 million in the comparable 2024 period.
"The strong results from the first half of the year, with over 200% increase in product revenues year-on-year and the best quarter in our history in terms of operating cash flows, confirm our business momentum and the opportunities that lie ahead," said Robert Wessman, Chairman and CEO of Alvotech.
Strong Commercial Performance Drives Growth
The revenue surge was primarily attributed to the continued expansion of AVT02 (adalimumab biosimilar) in the U.S., Canada, and European countries, alongside increased sales of AVT04 (ustekinumab biosimilar) in European markets and its successful launch in the United States. AVT02 is marketed under various brand names including SIMLANDI in the U.S. and Canada, HUKYNDRA in Europe, and ADALICIP in Australia.
Despite the strong product revenue growth, license and other revenue decreased to $101.3 million from $169.7 million year-over-year, primarily due to the timing of milestone achievements. The prior-year period included significant research and development milestones totaling $133.2 million.
Strategic Partnerships and Pipeline Expansion
Alvotech significantly expanded its commercial reach through new partnership agreements. The company entered into two agreements with Advanz Pharma covering four biosimilar candidates: AVT48 (canakinumab biosimilar), AVT65 (ofatumumab biosimilar), AVT10 (certolizumab pegol biosimilar), and an undisclosed candidate.
A notable collaboration was established with Dr. Reddy's Laboratories for the co-development, manufacturing, and commercialization of AVT32, a biosimilar candidate to Keytruda (pembrolizumab). This partnership is designed to accelerate development and extend global reach, with both parties sharing costs and responsibilities while maintaining commercialization rights globally.
Acquisitions Strengthen Capabilities
The company completed its acquisition of Xbrane Biopharma's R&D organization in Stockholm, Sweden, along with rights to a biosimilar candidate now designated as AVT10. In July 2025, Alvotech acquired Ivers-Lee Group, a Swiss pharmaceutical services company specializing in assembly and packaging services for autoinjectors, pre-filled syringes, and safety devices.
Financial Position and Capital Structure Optimization
Alvotech maintained a strong cash position of $151.5 million as of June 30, 2025, supported by operational performance and successful fundraising activities. The company completed Swedish Depository Receipts offerings generating gross proceeds of SEK 789 million, with over 3,000 new shareholders participating in the public offering and 40 institutional investors in the private placement.
The company achieved its third stock exchange listing on Nasdaq Stockholm in May 2025, complementing existing listings on Nasdaq in the U.S. and Iceland. Additionally, Alvotech amended its term loan credit agreement, reducing the interest rate to SOFR plus 6.0% and lowering interest expenses by $8.2 million in the first 12 months.
Operational Metrics and Pipeline Progress
Research and development expenses decreased modestly to $92.9 million from $97.5 million year-over-year, reflecting the natural progression of Alvotech's pipeline as several programs transitioned out of clinical phases or reached commercialization. However, the company increased investment in advancing clinical programs, notably AVT16 (vedolizumab biosimilar) and AVT29 (aflibercept biosimilar), contributing to a $33.1 million rise in direct program expenses.
Operating profit was $28.6 million for the six months ended June 30, 2025, compared to $43.4 million in the prior year period. The company reported a net profit of $141.7 million, or $0.50 per share, compared to a net loss of $153.5 million in the same period of 2024.
Leadership Changes
Linda Jónsdóttir was appointed Chief Financial Officer on July 9, 2025, replacing Joel Morales who continues in an advisory capacity. Jónsdóttir brings extensive international executive experience, including 15 years at Marel in senior finance and operations roles.
The company's current development pipeline includes nine disclosed biosimilar candidates targeting autoimmune disorders, eye disorders, osteoporosis, respiratory disease, and cancer, supported by a comprehensive network of commercial partnerships spanning the United States, Europe, Japan, China, and other global markets.
