Alvotech's Q1 2025 Earnings Call: Unpacking Contradictions on Market Dynamics, Pricing Strategies, and Biosimilar Launches

Interchangeability exclusivity and market dynamics, pricing strategy and market positioning, Stelara biosimilar launch and market dynamics, product shipments and market dynamics, and biosimilar market entry timing are the key contradictions discussed in Alvotech's latest 2025Q1 earnings call.



Revenue and EBITDA Growth:
- Alvotech reported raised full-year guidance with top line revenue guidance from 2025 is raised to $600 million to $700 million and adjusted EBITDA guidance is raised to $200 million to $280 million.
- The growth was driven by strong product revenues and notable license deals.

Biosimilar Market Expansion:
- Alvotech achieved $110 million in product revenues in Q1 2025, an increase of $97 million or 784% compared to the same period in the previous year.
- The expansion was primarily due to the U.S. launch of biosimilars to Humira and Stelara.

Interchangeable Approval and Market Opportunities:
- Alvotech's Stelara biosimilar received FDA approval for interchangeability effective from April 30, 2025.
- This approval is expected to positively impact the speed and extent of biosimilar conversion in the Stelara market.

Pricing Competition and Market Share Strategy:
- Competition in the U.S. Stelara market has led to strong price competition, impacting pricing and volumes.
- Alvotech plans not to follow aggressive price competition strategies, focusing on value, quality, service, and reliability.