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Investing.com - Morgan Stanley upgraded Alvotech SA (NASDAQ:ALVO) from Equalweight to Overweight on Tuesday, setting a price target of $14.00. According to InvestingPro data, the stock is currently trading below its Fair Value, with impressive revenue growth of 82% over the last twelve months.
The upgrade follows Alvotech’s progress across multiple fronts throughout 2025, with the company’s partners successfully launching and penetrating global markets with its first two products—biosimilars of Humira and Stelara—while advancing its development pipeline. The company maintains a healthy gross profit margin of 54% and is expected to grow its net income this year.
Morgan Stanley highlighted that Alvotech is expected to launch three new products by the end of 2025, with additional assets entering the pipeline, developments that have "de-risked the equity story and validate the strategy" according to the investment bank. For deeper insights into Alvotech’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro.
The firm expressed confidence in Alvotech’s business model, which focuses on research, development and manufacturing supported by a network of commercial partners, noting this approach is "well adapted to maximise each biosimilar opportunity globally" and should drive elevated margins in the mid-term.
Morgan Stanley particularly emphasized Alvotech’s expanding global presence as a key differentiator from most biosimilar competitors, pointing to the company’s network of 20 commercial partners operating across 90 countries, which could generate "a long tail of revenues across ex-US geographies."
In other recent news, Alvotech reported impressive second-quarter earnings for 2025, with earnings per share reaching $0.50, significantly surpassing the projected -$0.0023. The company’s revenue also exceeded expectations, totaling $204.7 million compared to the anticipated $120.51 million. In addition to its financial performance, Alvotech received a recommendation from the European Medicines Agency’s Committee for Medicinal Products for Human Use for the approval of AVT03, its biosimilar to Prolia and Xgeva (denosumab). This recommendation covers both the 60 mg/mL single-use pre-filled syringe and 70 mg/mL single-use vial formulations, pending final approval from the European Commission.
Furthermore, Alvotech’s Japanese partner, Fuji Pharma, has secured marketing approval for three biosimilar medicines from Japan’s Ministry of Health, Labor and Welfare. The approved biosimilars include AVT03, AVT05, and AVT06, with AVT05 being the first golimumab biosimilar approved for sale in major markets globally. These developments reflect Alvotech’s expanding presence in the biosimilar market across Europe and Japan.
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