The U.S. Food and Drug Administration has issued a complete response letter (CRL) for Alvotech's Biologics License Application for AVT05, a biosimilar candidate to Simponi (golimumab), marking a regulatory setback for what would be the first FDA-approved biosimilar to the autoimmune treatment.
The CRL, announced by Alvotech on November 2, 2025, cited manufacturing facility deficiencies that must be satisfactorily resolved before the application for AVT05 in prefilled syringe and autoinjector presentations can be approved. These deficiencies were identified during the FDA's pre-license inspection of Alvotech's Reykjavik manufacturing facility, which concluded in July 2025.
Manufacturing Issues Drive Regulatory Delay
The FDA did not identify any other deficiencies with the AVT05 application beyond the manufacturing facility concerns. Alvotech's facility remains FDA-approved to manufacture and continues supplying currently commercialized products, according to the company's announcement.
"As previously discussed, following the inspection of our facility, Alvotech submitted a comprehensive response to the FDA detailing our Corrective and Preventive Action (CAPA) plan," said Robert Wessman, Chairman and CEO of Alvotech. "While we are disappointed in receiving the CRL, we expect to resolve any outstanding issues and will continue to work with the FDA to bring this first-to-market biosimilar to patients in the U.S."
Market Opportunity and Competition
AVT05 represents a significant commercial opportunity in an uncontested market segment. Sales of Simponi in the U.S. during the first half of 2025 were less than $300 million, according to data published by IQVIA. Currently, there are no FDA-approved biosimilars to Simponi, positioning AVT05 as a potential first-to-market competitor.
Financial Impact and Revised Outlook
The regulatory delay has prompted Alvotech to revise its 2025 financial projections downward. The company now expects total revenues of $570-$600 million and adjusted EBITDA of $130-$150 million, both lower than previously provided guidance.
The reduced adjusted EBITDA outlook is primarily driven by expected continuation of investments related to resolving facility issues, which also require a temporary slowdown in production. However, Alvotech noted that these investments also serve to support the company's future growth plans and new product launches.
Company Profile and Pipeline
Alvotech is a global biotech company founded by Robert Wessman that focuses solely on the development and manufacture of biosimilar medicines. The company's current pipeline includes eight disclosed biosimilar candidates aimed at treating autoimmune disorders, eye disorders, osteoporosis, respiratory disease, and cancer.
The company has established a network of strategic commercial partnerships spanning the United States, Europe, Japan, China, and other regions. Key partners include Teva Pharmaceuticals in the U.S., STADA Arzneimittel AG in the EU, and Fuji Pharma Co., Ltd in Japan, among others covering various global territories.
