Alvotech (NASDAQ: $ALVO), a leading global biopharmaceutical manufacturer of biosimilars, released its Q4 fiscal 2024 results on Wednesday, March 26, 2024, after markets closed. Here is a deep dive into those results.
Alvotech Q4 2024 Results
For the fourth quarter of fiscal 2024, Alvotech reported revenue of $152.324, a 177.4% increase from a year ago and above estimates of $115.33 million. The company’s Q4 EPS came in at a loss of $0.24, on a net loss of $66.97 million, and an adjusted loss per share of $0.06.
Other Highlights
Product revenue in Q4 was $145.5 million, while license and other revenue was $5.7 million. It reported a cash reserve decline of $66.9 million, while the debt increased by $404. Million.
Full-Year Highlights
Full-year revenue rose 427% YoY to $492 million, with product revenue rising 462% YoY to $273 million. The FY adjusted EBITDA came in at $108.3 million compared to a negative of $291 million the previous year. Meanwhile, license and other revenue came in at $216.2 million compared to $42.7 million the previous year.
The company reported a net loss of $231.9 million for the full year, a loss per share of $0.87 compared to $2.43 the previous year. The adjusted loss per share in FY24 was $0.34 compared to $1.59 the previous year.
Alvotech Guidance
Alvotech expects revenue of $570M to $670M, a 25% YoY increase, while the 2025 adjusted EBITDA is forecast to be in the range of $180M to $260M, more than double what it reported in FY24.
It targets revenue of $1.5 billion by 2028, with an EBITDA margin forecast of 40% to 45%. It has set a milestone revenue of around $1 billion, with around $250 million growth in revenue each year from 2025 to 2028.
Market Performance
Following the Full-year results, ALVO shares sank 7.19% in the early morning trading session to $10.27 per share on March 27, 2025, as of 9:58 AM EDT. The stock is down 18.97% YTD and 9.92% in the past six months. Over the past 12 months, the shares have sunk 15.46%. ALVO shares are below both the 50- and 200-day moving averages of $12.11 and $12.15, respectively.
Looking at the share ownership, 64.88% of the shares are held by insiders, which signals confidence in the stock’s future, while 6.26% of the shares are held by institutional traders. 17.82% of the float is held by institutions.
Analysts remain moderately optimistic about the future of ALVO, giving the stock a moderate buy rating. They forecast an average price of $20.00, which is an 85.19% upside. The analysts provide a wide range of forecasts, with a high of $28 and a low of $14.
Should You Add Alvotech To Your Portfolio?
While Alvotech reported impressive revenue growth of over 400%, it is still incurring losses. However, management is optimistic, seeking to triple revenue from the current level by 2028. It is also noteworthy that most of the stock is held by insiders, signaling confidence in the stock’s future. Based on the guidance and the financial results, adding ALVO to your portfolio could potentially be beneficial in the long term.
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