Alvotech's Q2 2025: Navigating Contradictions in Market Share, Revenue Guidance, and FDA Inspections

Interchangeable exclusivity and market share dynamics, market share dynamics for Humira and STELARA in the U.S., confidence in top line guidance and revenue projections, FDA inspection and product launches, and product revenue growth and guidance are the key contradictions discussed in Alvotech's latest 2025Q2 earnings call.



Strong Financial Performance:
- Alvotech reported revenue growth of 30% to $306 million in the first half of 2025, compared to $236 million in the same period last year.
- The increase was driven by strong reorders, successful product launches, development progress, and improved manufacturing efficiency.

Biosimilar Market Success:
- The company's biosimilar to Humira achieved over 40% share of the overall U.S. Humira market by July, with Alvotech having the second-largest market share.
- Growth was due to accelerated conversion to Humira biosimilars as PBMs exclude the originator from formularies.

Cash Flow Improvement:
- Alvotech generated $77 million in positive cash flow from operations in the first half of 2025, an improvement of $161 million year-on-year.
- This improvement was attributed to high product revenue collections and effective inventory management.

Product Revenue Expansion:
- Product revenues in the first half of 2025 grew by over 200%, with second-quarter revenues growing 77% year-on-year.
- The increase was attributed to increased demand for biosimilars to Humira and STELARA, and new market entries for the latter.

Operational Efficiency and Strategic Acquisitions:
- The company maintained an adjusted product margin of 33% and completed strategic acquisitions, such as Xbrane's R&D operation and Ivers-Lee in Switzerland.
- These initiatives aimed to enhance R&D capabilities, control the full value chain, and increase operational flexibility.