Alvotech Raises $100 Million Through Convertible Bond Offering to Fund Biosimilar Pipeline Expansion
Key Insights
Alvotech launched a $100 million senior unsecured convertible bond offering to support its $250 million R&D investment planned for 2026, maintaining its position as a leader in biosimilar development.
The company operates one of the most valuable biosimilar portfolios in the industry with 30 products under development and plans to launch 4 new products globally in 2026.
Despite FDA approval delays for key biosimilars including AVT05 (Simponi), AVT06 (Eylea), and potential delays for AVT03 (Prolia/Xgeva), Alvotech projects 2026 revenues of $650-700 million.
Alvotech, a global biotech company focused exclusively on biosimilar development, announced on December 16, 2025, the launch of a $100 million senior unsecured convertible bond offering to fuel its ambitious research and development program. The Iceland-based company plans to invest approximately $250 million in R&D during 2026, maintaining its leadership position in the competitive biosimilar market.
Strategic Investment in Biosimilar Portfolio
The convertible bond offering, due in 2030, will support Alvotech's extensive pipeline of 30 products under development, which the company describes as "one of the most valuable portfolios of biosimilars in the industry." The funding will enable the company to scale up production capacity and supply chain operations while preparing for the global launch of four new products in 2026.
"The execution of the Offering will allow Alvotech to continue on its journey and keep its lead in investment into biosimilar development, while at the same time working on its launch readiness into global markets," the company stated.
Navigating FDA Regulatory Challenges
Alvotech faces regulatory headwinds with several key products experiencing FDA approval delays. The company received Complete Response Letters (CRLs) for AVT05, its biosimilar to Simponi and Simponi Aria, and AVT06, a biosimilar to Eylea. The company also anticipates a potential CRL in Q4 2025 for AVT03, its biosimilar to Prolia and Xgeva.
Despite these setbacks, Alvotech remains optimistic about resolving outstanding FDA issues and expects to receive U.S. approval by late 2026 for the three products currently under review. The company believes it will be "the first or among the first with approved biosimilars to Simponi and Simponi Aria in the US."
Significant Settlement with Regeneron
In a major development, Alvotech and its U.S. commercial partner reached a settlement and license agreement with Regeneron Pharmaceuticals concerning AVT06, the proposed biosimilar to Eylea (aflibercept). The settlement grants a license entry date for AVT06 in the United States in Q4 2026, or potentially earlier under certain circumstances, providing clarity for the company's market entry strategy.
Strong Financial Outlook Despite Challenges
Alvotech reaffirmed its 2025 financial guidance, projecting total revenues between $570-600 million and adjusted EBITDA of $130-150 million. For 2026, the company anticipates revenues of $650-700 million and adjusted EBITDA of $180-220 million, supported by higher volumes of commercialized products and launches of newly approved products in Europe and Japan.
The company's conservative 2026 guidance assumes minimal impact from U.S. launches of new biosimilars, reflecting a cautious approach given regulatory uncertainties. However, Alvotech maintains strong order books for its key products, particularly AVT05 and AVT06.
Current Market Position
Alvotech has already established a presence in the biosimilar market with two approved products: biosimilars to Humira (adalimumab) and Stelara (ustekinumab), which are marketed in multiple global markets. The current development pipeline targets autoimmune disorders (search), eye disorders (search), osteoporosis (search), respiratory disease (search), and cancer (search).
Bond Structure and Timeline
The convertible bonds carry an expected coupon of 6.375% to 6.875%, payable semi-annually, with a conversion premium of 25% to 30% over the reference share price. The bonds will be convertible into Swedish Depositary Receipts starting from the 41st day after issuance.
The offering includes a concurrent delta placement of approximately SEK 500 million in existing shares, fully underwritten by major shareholders ATP Holdings ehf and Alvogen Lux Holdings S.à. r.l. Settlement is expected by December 22, 2025.
DNB Carnegie serves as the sole bookrunner for the offering, with multiple legal advisors supporting the transaction across various jurisdictions.