Why Alvotech (ALVO) Is Up 15.5% After UK Court Ruling Clears Path for Eylea Biosimilar

• Earlier this month, the UK High Court rejected an injunction by Regeneron and Bayer that sought to halt Alvotech's UK manufacturing activities for its Eylea biosimilar, clearing the way for Alvotech to continue preparing AVT06 for post-patent distribution in Europe, the UK, and more global regions.
• This legal outcome provides manufacturing certainty for AVT06 and positions Alvotech to meet anticipated demand immediately following Eylea's Supplementary Protection Certificate expiry in November 2025.
• We’ll examine how this favorable legal development, which supports Alvotech’s European launch pipeline, impacts the company's investment narrative.

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Alvotech Investment Narrative Recap

For Alvotech, owning shares means believing in the company's ability to drive long-term value from biosimilar launches, global partnerships, and expanding addressable markets, while managing risks linked to regulatory timelines and competitive pricing. The recent UK High Court ruling, which allows continued manufacturing of AVT06 ahead of Eylea’s patent expiry, bolsters the most significant short-term catalyst by giving launch certainty in Europe, but it does not fundamentally change the largest current risk: regulatory delays impacting revenue timing.

Among recent announcements, the UK MHRA’s approval of all Gobivaz presentations adds further validation to Alvotech’s pipeline execution, reinforcing the company’s track record of advancing new biosimilars. However, even as more products approach launch, regulatory hurdles and unpredictable milestones continue to be the biggest variables that could impact profitability and growth.

However, while the Court win paves a clearer path in Europe, investors should still be mindful of challenges relating to...

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

Alvotech's outlook anticipates $1.4 billion in revenue and $538.9 million in earnings by 2028. This scenario assumes 36.7% annual revenue growth and a $475.5 million increase in earnings from the current level of $63.4 million.

Uncover how Alvotech's forecasts yield a $16.10 fair value, a 189% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community provided fair value estimates for Alvotech’s stock, spanning from US$14 to an outlier at US$2,650, highlighting major divergences. Despite this, the main risk, lumpy revenues tied to shifting regulatory timelines, remains a key consideration for anyone weighing these differing outlooks.

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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