Why Alvotech (ALVO) Is Down 8.5% After Securing a 2026 US Entry Window for AVT06

• Alvotech and Teva Pharmaceuticals previously reached a settlement and license agreement with Regeneron, clearing a legal path for AVT06, Alvotech’s proposed biosimilar to Eylea, to enter the US market by late 2026, following earlier marketing approvals in the UK, Japan and across the European Economic Area and positive phase 3 data in wet AMD.
• This resolution removes a key layer of legal uncertainty around AVT06’s US commercialization, potentially reinforcing Alvotech’s broader biosimilar roadmap and revenue visibility assumptions that analysts had been building into their forecasts.
• We’ll now examine how securing a US entry window for AVT06 could reshape Alvotech’s investment narrative and future growth assumptions.

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Alvotech Investment Narrative Recap

To own Alvotech, you need to believe its expanding biosimilar portfolio can scale into a more predictable, partner-led revenue stream, despite heavy competition and a leveraged balance sheet. The AVT06 settlement clarifies a US entry window but does not change that the near term key catalyst remains timely regulatory progress and commercial uptake of already approved products in Europe and Japan, while the biggest risk is still revenue lumpiness tied to regulatory and launch milestones.

The most relevant recent announcement alongside the AVT06 settlement is Alvotech reaffirming 2025 revenue guidance of US$570 million to US$600 million and introducing 2026 guidance of US$650 million to US$700 million. That outlook leans on higher volumes from products already commercialized and new launches in Europe and Japan, so any slippage in approvals, tenders or partner execution could quickly feed back into the revenue volatility investors have been watching.

Yet while the AVT06 settlement offers clearer visibility, investors should still be aware of how dependent guidance remains on regulatory timing and milestone flows...

Read the full narrative on Alvotech (it's free!)

Alvotech's narrative projects $1.4 billion revenue and $538.9 million earnings by 2028.

Uncover how Alvotech's forecasts yield a $22.17 fair value, a 349% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community currently estimate Alvotech’s fair value between US$14 and US$2,650.56, reflecting sharply different growth expectations. When you set those views against the company’s reliance on lumpy, approval driven milestone revenue, it underlines why many investors may want to compare several competing scenarios before forming a conviction.

Explore 8 other fair value estimates on Alvotech - why the stock might be worth just $14.00!

Build Your Own Alvotech Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Alvotech research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Alvotech research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alvotech's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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