Alvotech announced that it has successfully placed $108 million in senior unsecured convertible bonds, a financing move that replaces the earlier report of a $125 million commercial bond offering. The bonds carry a 6.875 % coupon, mature in 2030, and include a conversion premium of 25 % over the $4.7379 per share reference price, with an initial conversion price of $5.9224 per share.
The offering was significantly oversubscribed, reflecting robust demand from institutional and international investors. The oversubscription indicates confidence in Alvotech’s business model and its ability to scale its biosimilar portfolio without diluting equity shareholders. The convertible structure also provides the company with a flexible capital source that can be converted into equity if the company’s valuation rises, thereby preserving cash for growth initiatives.
Proceeds from the bond placement will fund a $250 million R&D investment planned for 2026, support the expansion of manufacturing capacity, and finance four new global product launches scheduled through 2026. The financing aligns with Alvotech’s strategy to accelerate market entry for its biosimilar candidates, including AVT05, AVT06, and AVT03, and to strengthen its supply chain in anticipation of U.S. market entry for pending approvals.
Alvotech reaffirmed its 2025 revenue guidance of $570 million to $600 million and adjusted EBITDA of $130 million to $150 million, while providing new 2026 guidance of $650 million to $700 million in revenue and $180 million to $220 million in adjusted EBITDA. The company’s first‑half 2025 net profit of $141.7 million marks a turnaround from a $153.5 million net loss in the first half of 2024, underscoring the effectiveness of its cost‑control and revenue‑growth initiatives.
CEO Robert Wessman said the successful bond placement “demonstrates the confidence of our international investor base in Alvotech’s integrated manufacturing platform and its pipeline of high‑value biosimilars.” CFO Linda Jonsdottir added that the new financing “provides the liquidity needed to sustain our double‑digit growth trajectory while maintaining a strong balance sheet.”
The market reaction to the bond placement was positive, with the offering’s oversubscription and the company’s reaffirmed guidance signaling investor confidence in Alvotech’s ability to execute its growth strategy and navigate regulatory headwinds. The financing strengthens the company’s capital structure and positions it to capitalize on upcoming product launches and market expansion opportunities.
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