Alvotech (ALVO) is likely to report a "soft quarter" due to production disruptions tied to regulatory resubmissions, but is well positioned to benefit from the upcoming biosimilar loss of exclusivity opportunity, UBS said in a Q2 preview received on Monday.
The company is scheduled to report its Q2 results on Aug.19.
UBS lowered its Q2 forecasts to $106 million in revenue and $15 million in operating income from $146 million and $36 million, respectively. The brokerage said production resumed in June and expects a "significant step-up" in the second half.
With the company's management reiterating confidence that the targeted Q4 approval and launch timeline remains on track across three assets, UBS said the risk/reward is skewed heavily to the upside.
UBS reiterated its buy rating and price target of $6.
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