Shares of Alvotech (NASDAQ: ALVO) plunged 7.68% on Wednesday following the company's disappointing third-quarter earnings report and reduced full-year guidance. The Iceland-based biosimilars developer reported Q3 revenue of $113.744 million, falling short of analyst expectations of $117.203 million.
Despite reporting a 24% increase in nine-month revenue to $420 million, Alvotech lowered its full-year 2025 revenue guidance to $570-$600 million, down from previous estimates. The company also reduced its adjusted EBITDA forecast to $130-$150 million. Adding to investor concerns, Alvotech highlighted ongoing issues from an FDA inspection of its Reykjavik facility in July as a "top priority," although the facility remains FDA approved and continues production.
The sharp stock decline also reflects apprehension over Alvotech's cash position, which decreased to $42.8 million as of September 30. This reduction was attributed to inventory build-up for new launches, capital expenditures, and recent acquisitions. While the company secured a new $100 million working capital option to address these needs, the cash burn rate appears to be worrying investors. Despite these challenges, Alvotech reported positive developments, including new biosimilar approvals in Japan and Europe, which may provide growth opportunities in the future.
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