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ALVO Stock Trades Near 52-Week Low: Should You Buy, Hold or Sell?
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Key Takeaways
Alvotech shares have fallen 38% in 2025, underperforming the industry, sector and the S&P 500.
Product revenue jumped 200% in H1 2025 to $205M, driven by Simlandi and Selarsdi sales.
ALVO gained EU approval for Mynzepli and expanded partnerships with Dr. Reddy's and Advanz Pharma.
Shares of biosimilar drugmaker Alvotech (ALVO - Free Report) closed at $8.16 on Monday, near its 52-week low of $7.35.
This underperformance is attributable to investor concerns over stiff competition in the biosimilar space, coupled with escalating fears of tariffs on pharmaceutical imports, which have added uncertainty to the sector.
So far this year, Alvotech’s shares have declined 38% against the industry’s 5% growth. The stock has also underperformed the sector and the S&P 500 during the same period, as shown in the chart below. ALVO’s shares are trading below the 50 and 200-day moving averages.
Let’s analyze the company’s strengths and weaknesses to understand how to play the stock amid the recent share price decline.
ALVO’s Commercial Partnerships Drive Growth
What differentiates Alvotech from other players in the generic/biosimilar space is its collaboration-based business model. The company develops and manufactures biosimilars in partnership with established generic players, such as Teva Pharmaceuticals (TEVA - Free Report) and Dr. Reddy’s Laboratories (RDY - Free Report) . These partnerships provide Alvotech access to global markets while mitigating the commercial risks associated with product launches.
Under these agreements, Alvotech focuses on the development and manufacturing of biosimilars while its partners hold exclusive rights to market approved products in their respective regions. The company currently markets two biosimilars in the United States, Simlandi (a biosimilar to AbbVie’s Humira) and Selarsdi (a biosimilar to J&J’s Stelara), both in collaboration with Teva. In Europe, Alvotech has a similar partnership with Germany-based Stada to market biosimilar versions of Humira and Stelara under the names Hukyndra and Uzpruvo, respectively.
In the first half of 2025, ALVO’s product revenues skyrocketed over 200% year over year to nearly $205 million. This uptick was primarily driven by increased sales of both drugs across the marketed regions. Looking ahead, the company seems confident about achieving its previously issued sales guidance range of $600-$700 million for the full year 2025.
Expanding its portfolio, Alvotech recently secured regulatory approval in the EU for Mynzepli, its biosimilar for Regeneron’s Eylea, developed in partnership with Advanz Pharma. This approval paves the way for new revenue streams and expands the company’s footprint beyond immunology into the ophthalmology space. ALVO also expanded its partnerships with Dr. Reddy’s and Advanz Pharma, announcing plans to develop five biosimilar candidates, including Novartis’ Kesimpta and Merck’s Keytruda.
These partnerships allow Alvotech to receive upfront and milestone payments upon achieving regulatory approvals or reaching commercial milestones, thereby boosting its cash flow and providing additional financial support.
Stiff Competition in the Biosimilar Space
Despite strategic partnerships and a growing portfolio, Alvotech operates in a highly competitive market. Numerous players, including large pharma companies and specialized biosimilar developers, are competing for market share in established therapeutic areas such as immunology and ophthalmology.
As more biosimilars enter the market, payers and healthcare providers have greater negotiating power, often pushing prices lower to secure preferred access. This can limit Alvotech’s pricing flexibility and compress profit margins, especially in regions where biosimilar adoption is still price-sensitive. Additionally, aggressive competition may force the company to invest more in marketing and support services, increasing operational costs.
ALVO Stock Valuation & Estimates
The company is trading at a premium to the industry. Going by the price/sales ratio, the stock currently trades at 3.32 times trailing 12-month sales value, higher than 2.16 times for the industry.
Image Source: Zacks Investment Research
Estimates for Alvotech’s 2025 and 2026 EPS have improved significantly in the past 30 days.
Image Source: Zacks Investment Research
How to Play ALVO Stock?
We would suggest holding on to this Zacks Rank #3 (Hold) stock for now. Though it is trading at a premium compared to industry peers, the recent upward movement in EPS estimates suggests that analysts likely see growth potential ahead.
While the generic industry carries inherent risks, Alvotech has been making steady progress in expanding its portfolio of marketed products. The company expects to secure approvals by year-end for biosimilar versions of treatments such as Amgen’s Prolia/Xgeva, J&J’s Simponi and Eylea, which could help drive top-line growth.
At the same time, Alvotech is investing in its long-term development capabilities through recent strategic acquisitions. These include Xbrane’s R&D facilities in Sweden and the family-owned Ivers-Lee business in Switzerland, aimed at supporting end-to-end platform integration and strengthening the company’s pipeline and operational footprint.
Image: Bigstock
ALVO Stock Trades Near 52-Week Low: Should You Buy, Hold or Sell?
Key Takeaways
Shares of biosimilar drugmaker Alvotech (ALVO - Free Report) closed at $8.16 on Monday, near its 52-week low of $7.35.
This underperformance is attributable to investor concerns over stiff competition in the biosimilar space, coupled with escalating fears of tariffs on pharmaceutical imports, which have added uncertainty to the sector.
So far this year, Alvotech’s shares have declined 38% against the industry’s 5% growth. The stock has also underperformed the sector and the S&P 500 during the same period, as shown in the chart below. ALVO’s shares are trading below the 50 and 200-day moving averages.
ALVO Stock Underperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
Let’s analyze the company’s strengths and weaknesses to understand how to play the stock amid the recent share price decline.
ALVO’s Commercial Partnerships Drive Growth
What differentiates Alvotech from other players in the generic/biosimilar space is its collaboration-based business model. The company develops and manufactures biosimilars in partnership with established generic players, such as Teva Pharmaceuticals (TEVA - Free Report) and Dr. Reddy’s Laboratories (RDY - Free Report) . These partnerships provide Alvotech access to global markets while mitigating the commercial risks associated with product launches.
Under these agreements, Alvotech focuses on the development and manufacturing of biosimilars while its partners hold exclusive rights to market approved products in their respective regions. The company currently markets two biosimilars in the United States, Simlandi (a biosimilar to AbbVie’s Humira) and Selarsdi (a biosimilar to J&J’s Stelara), both in collaboration with Teva. In Europe, Alvotech has a similar partnership with Germany-based Stada to market biosimilar versions of Humira and Stelara under the names Hukyndra and Uzpruvo, respectively.
In the first half of 2025, ALVO’s product revenues skyrocketed over 200% year over year to nearly $205 million. This uptick was primarily driven by increased sales of both drugs across the marketed regions. Looking ahead, the company seems confident about achieving its previously issued sales guidance range of $600-$700 million for the full year 2025.
Expanding its portfolio, Alvotech recently secured regulatory approval in the EU for Mynzepli, its biosimilar for Regeneron’s Eylea, developed in partnership with Advanz Pharma. This approval paves the way for new revenue streams and expands the company’s footprint beyond immunology into the ophthalmology space. ALVO also expanded its partnerships with Dr. Reddy’s and Advanz Pharma, announcing plans to develop five biosimilar candidates, including Novartis’ Kesimpta and Merck’s Keytruda.
These partnerships allow Alvotech to receive upfront and milestone payments upon achieving regulatory approvals or reaching commercial milestones, thereby boosting its cash flow and providing additional financial support.
Stiff Competition in the Biosimilar Space
Despite strategic partnerships and a growing portfolio, Alvotech operates in a highly competitive market. Numerous players, including large pharma companies and specialized biosimilar developers, are competing for market share in established therapeutic areas such as immunology and ophthalmology.
As more biosimilars enter the market, payers and healthcare providers have greater negotiating power, often pushing prices lower to secure preferred access. This can limit Alvotech’s pricing flexibility and compress profit margins, especially in regions where biosimilar adoption is still price-sensitive. Additionally, aggressive competition may force the company to invest more in marketing and support services, increasing operational costs.
ALVO Stock Valuation & Estimates
The company is trading at a premium to the industry. Going by the price/sales ratio, the stock currently trades at 3.32 times trailing 12-month sales value, higher than 2.16 times for the industry.
Image Source: Zacks Investment Research
Estimates for Alvotech’s 2025 and 2026 EPS have improved significantly in the past 30 days.
Image Source: Zacks Investment Research
How to Play ALVO Stock?
We would suggest holding on to this Zacks Rank #3 (Hold) stock for now. Though it is trading at a premium compared to industry peers, the recent upward movement in EPS estimates suggests that analysts likely see growth potential ahead.
While the generic industry carries inherent risks, Alvotech has been making steady progress in expanding its portfolio of marketed products. The company expects to secure approvals by year-end for biosimilar versions of treatments such as Amgen’s Prolia/Xgeva, J&J’s Simponi and Eylea, which could help drive top-line growth.
At the same time, Alvotech is investing in its long-term development capabilities through recent strategic acquisitions. These include Xbrane’s R&D facilities in Sweden and the family-owned Ivers-Lee business in Switzerland, aimed at supporting end-to-end platform integration and strengthening the company’s pipeline and operational footprint.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.