1. Alvotech raised USD 108 million from convertible bonds, oversubscribed significantly. 2. Funds will support R&D investment of USD 250 million in 2026. 3. Alvotech plans four new product launches through 2026. 4. Strong investor demand highlights confidence in Alvotech's business model. 5. Current pipeline includes 30 products, indicating substantial growth potential.
FAQ
Why Bullish?
The successful bond raising, along with robust R&D plans, signals strong investor confidence. Historically, oversubscribed offerings can lead to positive price movements in biotech stocks.
How important is it?
The bond offering and linked investments directly support Alvotech’s future growth prospects, making this highly relevant to ALVO.
Why Long Term?
Investment in R&D and new product launches will impact future performance significantly. For instance, firms like Amgen saw long-term gains after strategic funding initiatives.
Alvotech Secures USD 108 Million Through Successful Convertible Bond Offering
REYKJAVIK, ICELAND (December 17, 2025) — Alvotech (NASDAQ: ALVO), a leading global biotech company dedicated to the development and manufacturing of biosimilar medications, has announced the completion of its successful offering of USD 108 million in senior unsecured convertible bonds set to mature in 2030. This offering saw significant oversubscription and aims to bolster the company's investments in research and development (R&D), projected at USD 250 million for the upcoming year.
Investment in Research and Development
Alvotech's focus on R&D is illustrated by its robust pipeline, which currently features 30 products under development. This positions the company as a key player in the biosimilars market, boasting one of the most valuable portfolios in the industry. Additionally, Alvotech is scaling its production capabilities to facilitate four new global product launches anticipated through 2026.
Quotes from Leadership
Robert Wessman, Chairman and CEO of Alvotech, expressed gratitude for the impressive support from international investors, stating, “Their confidence reflects the resilience of our business model, the value of our integrated manufacturing platform, and the global opportunities ahead. This financing ensures we remain well-positioned to advance our pipeline, support global launches and continue bringing important biologic treatments to patients worldwide.”
Details of the Convertible Bonds
The offering comprises senior unsecured convertible bonds due December 22, 2030, with proceeds intended for R&D investments, scaling operations, and product launches. The bonds, which carry a coupon of 6.875% paid semi-annually, were issued at par in denominations of USD 200,000.
- Conversion premium set at 25% over USD 4.7379 per share, initial conversion price fixed at USD 5.9224 per share.
- Bonds are convertible starting on the 41st day of issuance into Swedish Depositary Receipts (SDRs).
- The company may call the bonds after a minimum trading price condition is met over a specified period.
Facilities and Concurrent Placements
Alvotech Manco ehf, a wholly-owned subsidiary, has established a stock lending facility for the duration of the convertible bonds to assist investors in hedging activities. Concurrently, a placement of existing shares totaling approximately USD 56 million aligned with the bond issuance was conducted. The share price in this concurrent delta placement was determined to be USD 4.7379, reflecting a 10% discount based on market conditions.
Transaction Timeline and Advisors
Key milestones for the bond offering include:
- December 16, 2025: Launch of the Offering and Concurrent Delta Placement.
- December 17, 2025: Pricing and Allocation of the Bonds.
- December 19, 2025: Trade Date (T).
- December 22, 2025: Settlement of the Convertible Bonds.
DNB Carnegie acted as the Sole Bookrunner for this offering, with additional legal guidance from various firms across relevant jurisdictions.
About Alvotech
Founded by Robert Wessman, Alvotech is focused exclusively on developing and manufacturing biosimilar medicines for a global audience. The company aims to lead the biosimilars market by providing high-quality, cost-effective products enabled by its fully integrated capabilities.
Contact Information
For further details, interested parties are encouraged to reach out to:
- Patrik Ling: VP Investor Relations Scandinavia (SE) - alvotech.ir@alvotech.com
- Benedikt Stefansson: VP Investor Relations and Global Communications (IS) - alvotech.ir@alvotech.com
- Sarah Macleod: Head Global Communications - alvotech.media@alvotech.com