Alvotech at Goldman Sachs Conference: Strategic Growth in Biosimilars

On Wednesday, 11 June 2025, Alvotech (NASDAQ:ALVO) presented at the Goldman Sachs 46th Annual Global Healthcare Conference 2025. The company highlighted its transition from a startup to a growth phase, driven by a robust biosimilars pipeline and strategic acquisitions. While Alvotech projects significant growth, it also faces challenges such as potential pharmaceutical tariffs. The company’s stock saw a slight premarket dip, reflecting cautious investor sentiment.

Key Takeaways

• Alvotech has invested nearly $2 billion over the past decade in its R&D and manufacturing platform.
• The company has achieved four consecutive quarters of positive EBITDA and offers strong guidance for the year.
• Alvotech aims to reach $1.5 billion in revenue by 2028, with a 40-45% EBITDA margin.
• The company operates the largest biosimilars pipeline globally, with 28 assets.
• Alvotech is confident in navigating potential tariffs due to favorable contract structures.

Financial Results

• 2025 revenue guidance is set between $600 million and $700 million.
• EBITDA for 2025 is projected at $200 million to $280 million, up from $108 million in 2024.
• By 2028, Alvotech targets $1.5 billion in revenue, with $1.2-$1.3 billion from product sales and $200-$300 million from milestones.
• Capital expenditures are expected to be $60-$70 million in 2025, decreasing to $25 million annually from 2026 to 2028.

Operational Updates

• Alvotech has maintained positive EBITDA for four consecutive quarters.
• The company expects three major product approvals in the next six months.
• Integration of Xplain operations in Sweden aims to accelerate R&D.
• The acquisition of Cimzia enhances Alvotech’s immunology pipeline.
• The company follows a partnership model, sharing revenues with commercial partners.

Future Outlook

• Alvotech plans to continue launching biosimilars in the US and internationally.
• Focus is on securing approvals for products like Hylia, Symphony, and Symphony ARIA.
• Anticipated launches include Entyvio and Hialeah high dose by 2027-2028.
• A cumulative milestone income of $1 billion is expected from 2025 to 2028.
• The company targets a $185 billion total addressable market with its pipeline.

Q&A Highlights

• Alvotech secured a private label for its Humira biosimilar due to its unique formulation.
• Partnership revenue splits typically favor the commercial partner at 60/40.
• The company operates in 90 countries with 19 partnerships, viewing its opportunity as global.
• Alvotech anticipates the Humira market to convert to biosimilars by 50% in 2025.
• The impact of potential pharmaceutical tariffs is expected to be minimal.

For a deeper dive into Alvotech’s strategic insights and financial outlook, refer to the full conference call transcript below.

Full transcript - Goldman Sachs 46th Annual Global Healthcare Conference 2025:

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Good. Okay. Great. Well, good morning, everyone, and and thank you for joining us. My name is Matt Seltore, and I’m the the generic pharma analyst here at at Goldman Sachs.

And we’re very pleased to have, Alvatek with, chief strategy officer, Balaji Prasad. Balaji, maybe just to get started, could you give us a brief overview of the company and and walk us through the platform and just some of the key differentiators.

Balaji Prasad, Chief Strategy Officer, Alvotech: Sure. Firstly, Matt, let me thank you and the Goldman Sachs team for inviting us to the conference. It’s a pleasure being here. So what makes Alvo Tech different? Yeah.

I think it boils down to three major factors as you can think about having been closely associated with the company. Though I’ve been just with the company for a month, but I’ve also known them for more than a few years. I think, firstly, the very close integration between r and d and manufacturing is is a very strong differentiator for Avotec. It gives us competitive advantages in many, many ways that that is, like, long to list out here. we have a very, very custom built, purpose built platform.

We have invested over $2,000,000,000 nearly $2,000,000,000 into this over the last ten years. And what we have today is a very tight, vertically integrated organizational setup, very close network collaboration set between r and e and manufacturing, and and, large capacity, which really is the differentiator for us. I’ll also call out the the management team. So we have a management team, which is, I think, exceptional in thinking and breathing biosimilars. And starting maybe the found founder, Robert Fussman, who many of you know from his many successes in the generics and biosimilars space.

And he’s been instrumental in setting this up ten years ago and taking it to where it is, where we stand currently as a as a company potentially generate generous generating around 600 to $700,000,000 in revenue this year, as we have said, and at a very major material inflection point as we see in terms of revenue trajectory, EBITDA trajectory, and all of it. So I think he has been material in getting the company to this situation. So I think this would be, if I were to say, the three major differentiators for us versus peers. Mhmm.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Great. And then maybe what are you all most focused on from an execution perspective over the next twelve to eighteen months?

Balaji Prasad, Chief Strategy Officer, Alvotech: Sure. As I said, we are at the at an operating at an inflection point in our career growth. AlgoTech over the last ten years has been largely in a setup phase and startup phase. Right? Building up cell lines, building up r and d, developing these, tying up with partners, and and the last year was when we became EBITDA positive.

And, we now have four successive quarters of positive EBITDA, and we have, like, very strong EBITDA guidance for the year. And at this inflection point, it’s important to ensure that execution continues onwards. And the whole team, management team, and the and the rest of the company is really geared on focusing on executing now. So what does this execution translate into? Which is, one, continue to ramp up biosimilar and biosimilar that we have launched, in US and outside US, nearly 25 plus countries outside The US too.

Two, we have three major approvals coming over the next in the next six months. So ensure that we get these approvals, launch them as successfully as we can, and continue our commercial trajectory into next year. That is two. And three, if I were to say, you would have recently followed that we acquired parts of Xplain operations in Sweden. So integrate those r and d operations in Sweden along with the already well established r and d platform in Iceland.

There are multiple synergies that comes out of this integration. It will primarily the one which is acceleration of our r and d programs into a number of platforms or programs that we expect to launch every year. So ensure that this integration goes smoothly, and as a consequence, our r and d pipeline continues to build, notwithstanding the fact that we have the largest biosimilars pipeline amongst peers globally and show that these R and D platform continues to build it next year.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Great. So as you mentioned, you know, you you do have one of the largest biosimilar pipelines out there. However, many of us are only kind of familiar with the the some of the Teva partnered assets, including myself. What what would you highlight kind of beyond those, and what has enabled you all to build out your pipeline so aggressively?

Balaji Prasad, Chief Strategy Officer, Alvotech: Sure. So for the benefits of those listening in and the audience, want to summarize our pipeline. So we have currently two commercial assets. We have disclosed 14 assets in total in various stages of development. And beyond that, we have another 14 assets.

So we have 28 assets that we have said, which is the largest biosimilars program globally. And then we also have to think about how X-ray will contribute incrementally to this. Right? So what that takes us is is a is a very large r and d r and d platform. So which amongst these is now key or material as I said?

I think amongst the ones that apart from the ones we already launched, Imira, Basimony Imira and Basimony Stellara. We’re also excited about the upcoming launches, which includes Hylia, the low dose version, and then there is Symphony and Symphony ARIA, which we believe is going to be a limited competition opportunity and where we can differentiate substantially. Looking beyond that into 2027, we are also very excited about two particular assets. One is the one is Entyvio, and the other one is Hialeah high dose. So that’s something that we’re looking at as the wave of our launches, of lack of a better word, which will come up in the 2027 to 2028 period.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Great. Great. And then, you know, you mentioned this kind of operating inflection. You all recently raised your 2025 guidance. Could you maybe just remind us what this entailed, you know, and what led to the to the raise and what drives your confidence?

Balaji Prasad, Chief Strategy Officer, Alvotech: Sure. So going into the year, early February, we had come out with a very strong guidance for the year. And, post that, once we concluded the acquisition of Xbrain, we for which we paid $21,000,000, we also got the asset Cimzia. Yeah? Pegilator entity and a molecule further boosting our immunology pipeline.

And what we realized as we acquired this asset is this is a truly differentiated asset. We got multiple inbound calls in with partners wanting to partner on this particular asset. So I think with the visibility that we had, so we felt that there’s going to be some partnerships that we’re going to sign up. As a consequence, we’ll also get some milestone income. So that was one of the primary reasons, and then we had implemented progress in multiple other programs.

So combining both of these, we thought it is prudent to increase our guidance. So we took up our revenue guidance by around $30,000,000 Mhmm. To and then our EBITDA guidance by around $20,000,000 to 200 to $280,000,000. Yep. So primarily led by Sunzhi.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Mhmm. Got it. Got it. And then walk us through maybe kind of from a longer term perspective, your your 2028 targets from both, like, a revenue growth and and EBITDA margin perspective.

Balaji Prasad, Chief Strategy Officer, Alvotech: Sure. So where we stand this year is we have our guidance out for the year with around 600 to $700,000,000 in the top line and 200 to $280,000,000 EBITDA. And for the benefit of those, this is a substantial revenue growth over last year. And last year, 2024, we ended with around, $108,000,000 of EBITDA. So from $108,000,000 of EBITDA in 2025, we are almost doubling EBITDA at the lower end of the range to $200,000,000, and at the higher end of the range, substantially more than doubling to $280,000,000.

From here, where we see because of this operating inflection that I spoke about is that we expect our EBITDA in wait. Let me start with top line. We expect our top line to go grow from six hundred, seven hundred this year to 1,500,000,000 in 2028. That’s more than double. Of this $1,500,000,000, we expect product revenues to contribute around 80 to 85% of of this, approximately, let’s say, $1.21300000000.0 dollars, And then milestone revenues between 20 to 25%, which is, again, approximately 200 to $300,000,000.

So where where is this coming from? So as I said, we have three two products currently which are commercial globally, US, Europe, Canada, Japan, multiple other geographies. And then we are expecting in the near term three material launches. And they have also discussed prior to our 2027 and 2028 product launch opportunities. So we expect that to take to be $1,200,000,000 range.

And below that is milestone comes. So milestone comes for appro approximately $250,000,000, let’s say, for 2028. But what will happen from now to the next four years is every year, we expect our milestone income to be approximately $250,000,000. So we will be generating a mill billion dollars of revenues from 2025 to 2028 in cumulative milestone income, which is a which is a phenomenal number to think about. Right?

So we’ll be generating a billion dollars of expect to generate a billion dollars of revenue milestone revenue in this period. Trickling down from revenue to the EBITDA level, so we expect COGS to be around between 35 to 4040% in terms of SG and A and some r and d of around 20%. So there’s not going to be any material change there, which takes us to our EBITDA where we expect EBITDA margin of 40 to 45% by 2028. Of this 40 to 45%, the product revenues would be around 60 to 65% of product revenues. So this operating inflection, as I said, comes because, a, our capacity is set.

Our fixed costs are more or less fixed now. We can, like, start really building our EBITDA trajectory Mhmm. And also a significant impact on the cash flow that we expect to generate and the cash returns that we expect to generate over the next few years. Mhmm. And mind you, all of this is on CapEx that we expect to be limited or minimal.

This year, we expect to incur a CapEx of 60 to $70,000,000. Next three years, we expect to see CapEx of around $25,000,000 annually. So we don’t need any incremental CapEx. We are well well invested into well set up into delivering on a commercial goals and launches with the existing infrastructure, which we think will carry us into 2030 and even beyond 2030. So very strong guidance, very strong target out there that the company is geared to or working towards delivering.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Great. Yeah. That’s super helpful. Stepping back and kinda just thinking about the the market overall, how do you guys how do you guys kinda think strategically about the the current biosimilars market? And and what’s your your longer term outlook on the space?

Balaji Prasad, Chief Strategy Officer, Alvotech: Sure. We are extremely excited about the opportunities in the biosimilars market. We the way we saw this develop over the last ten years, the market is coming to into into some sort of maturity in terms of, like, we we have seen the buy and build oncology launches. We have seen the immunology pharmacy benefit launches. So the market is really, coming into its own now.

And, if I have to, like, take a step further up and look at the overall market development, think about this, Matt. 14 out of 62 biologic drugs that have gone off patent, only 14 have seen as of today some biologic launches. The you still have, like, literally, what is it, 48 biologics which are off patent, but no launches currently. Yeah. So there is a lot of just from this existing off patent, there’s still a lot of scope for us to address.

And then if you think about where this next set of growth coming from, again, there’s if you think about the current clinical trials globally, around 60% of phase two, phase three assets are biologics, which means that the even if I were to think about, let’s say, what is my growth going to be beyond twenty, thirty five for even drugs that I don’t know today that exist, there is going to be a long, long tail of opportunity. Right? So there is a long growth beyond that too. And and with our existing pipeline that we have said about spoken about 80 28 molecules, we are targeting $185,000,000,000 of total addressable market. So with just our existing pipeline of 28 drugs that we have in various stages of development, we have a very large ramp to grow with this $185,000,000,000 of TAM that we are targeting.

So we’re extremely excited about the biologic biosimilars market. We think it’s it it has phenomenal growth opportunities, and we believe we are one of the best positioned, if not the best positioned company out there with our pipeline, with our integrator platform, with a team that’s executing, and a very unique model in operations, which is a partnership model. Mhmm. I’ve not spoken about that before, so let me just address that too. So we as you know, we do not sell commercially front end in any of our markets.

We choose an who we believe is the best player in each market commercially, And we have partnered with this with these companies, and we sell sell through these companies. Right? And each of these companies are investing into it because they have paid us as in terms of various milestone incomes. They have paid us royalties. And so they are fully invested into our platform and into the program.

And when the drug is eventually commercial, ensure that they also generate the returns on their investment. So this model has really helped us build a differentiated r and d program and an r and d program, which is also self sufficient or self funding. Many may most of our projects are now basically cover their costs fully. So and that kind of acts as a positive or a virtuous cycle in terms of expanding our platform further.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Mhmm. And that’s what gives you guys kind of the margin profile that you have with Absolutely. Yeah.

Balaji Prasad, Chief Strategy Officer, Alvotech: Also, one of the one of the factors.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Uh-huh. And maybe kinda just are there any key aspects of your strategy when you all decide, you know, type of biosimilars to choose or go after? Just anything that you would highlight there in terms of the the kind of foundations of your strategy.

Balaji Prasad, Chief Strategy Officer, Alvotech: Sure. Probably there I I won’t think there’s a secret sauce because, ultimately, the step to developing a biosimilar program is to look at the size of the molecule Mhmm. And see if it is large enough for us to justify an investment of approximately $200,000,000, give or take twenty five, fifty million dollars neither side. A $200,000,000 investment into developing a biosimilar platform. So the drug has to be a reasonable size.

The pathway has to be clear. And and I think in terms of technological capabilities, I think we’ve always been very confident of our ability to develop simulators, and so that’s not been a big barrier. So but it’s been a barrier for many of our peers, but we have been multiple limited competition of once we’re we are the sole biosimilars, at least as far as we know. So each of these comes into play, and we’re able to develop these biosimilar programs.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Mhmm. Maybe touching on biosimilar Humira. Walk us through how you all secured the private label for that program despite being one of the the later assets to market.

Balaji Prasad, Chief Strategy Officer, Alvotech: Sure. So as you know, the biosimilar, HUMIRA went off patent HUMIRA went off patent a couple of years ago. Where we’re really fortunate was, again, our ability to have this differentiated assets. And for us, biosimilar HUMIRA was always a differentiated asset, our biosimilar HUMIRA, in that we had the only high concentration citrate free nonsting and all of that, but high concentration interchangeable biosimilar. And what it meant was though we came to the market late, we are, like, the or player, we were able to because of the uniqueness of our asset, we had an exclusive interchangeable eye concentration biosimilar.

We exclusively ran for twelve months, which ended recently. That really helped us to have a commercial edge and win win the private label deals. Mhmm. So could that be relevant for in future biosimilar programs? We’ll see.

FDA is thinking revisiting its interchange for these tabs. But that said, that that was what helped us and but we have if I had to, like, take the technology further and think of future launches, will future launches see similar competitive advantages? Yeah. We have limited competition launches coming up too. So we’ll be one or one of two players, and that will help us secure things too.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Mhmm. Mhmm. And then we touched on this a little bit already in terms of the the margin profile, but, you know, how do you how do you all think about the kind of the profitability of of biosimilars broadly? And then also, obviously, for for Alvetech specifically, just given given how you guys structure your terms.

Balaji Prasad, Chief Strategy Officer, Alvotech: Sure. So when I spoke about our 2025 guidance and target 2028, you got some insight into how we have how our operating profits are and how we expect to ramp up. Probably going a bit deeper into this to the extent I can, our partnerships are structured in a way, I think, typically, we tend to have, like, a sixty forty revenue split in favor of the partner, in favor of our commercial partner who’s launching the drug. And 40 and, again, that rolls down into product margins of around 60 to 65% of EBITDA margins for us despite just from that 40% of the cut. So we’re good.

So the partner takes on the commercial risk and the Mhmm. And and everything else. And for us, because of the capacity that we have, so, again, as a fixed cost, more or less fixed cost, and we expect each of these assets to be profitable further. The important differentiator that I would say matters, as we sit today, we have launched two drugs which are primarily in the pharmacy reimbursement space, Basmira Imera and Basmistelara. Will also be launching our next set of assets will be in the oncology and the buy and build space, which are going to be interesting, which are going to be very different.

So you will have the dynamics are going to be channel dynamics are going to be different, and we expect the probably even more profitable. And some of these, as I said, Entyvio, Eylea high dose, they’ll be ones where we are either to market or we’ll be the only ones in the market for some time. Mhmm. So that will help us the profitability from that we could expect would be great.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Mhmm. And then we often hear about kind of the the the differences between The US market and and the European market and any of the other ex US markets. How do you all kind of strategize with regards to that, and and what do you see as kind of the key differences or or long term kinda outcomes there?

Balaji Prasad, Chief Strategy Officer, Alvotech: I’m glad you asked about the ex US market. We constantly reiterate that we are not just a US growth story. And The US market opportunity is phenomenal, and we are happy to be providing a low cost biologic drug to The US health care system. But we see our opportunity as global. We are present in 90 countries with nine 90 countries with 19 partnerships.

The margin profile for each of these varies ultimately because different countries, different ASPs, that’s that’s inevitable. But each of these territories or each of these countries individually are profitable for us. Mhmm. I will obviously not break down into what the profitability for each of these geographies are, but you can you can assume that based on what we sell at and what we get, we they are very profitable for us at a co corporate level Mhmm. At a group level.

Mhmm. Yeah.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Great. And then do you all think about maybe the ideal market size to balance kind of the, you know, competition level and then also the opportunity? Sometimes, you know, we hear 1 to 5,000,000,000 range is kinda maybe the sweet spot. Do you do you would you think that’s fair, or or do guys look for something different?

Balaji Prasad, Chief Strategy Officer, Alvotech: I think that’s that’s anything above a billion dollar, I think it’s fair. But we’ll also have to see how the cost of developing a program evolves, what are the other things, other factors which can have an influence on somebody’s ability or decision to invest in a biologic platform. If the cost of developing a biosimilar program goes down from $250,000,000 million dollars to 100 to $125,000,000, then could we see some of the below billion dollar biologic assets seeing programs in development? Oh, why not? I would not be surprised, and I think it’s needed.

It’s needed. So I think that’s going to be one one of the determinants for for this programs future programs. Mhmm.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Maybe given what we’ve seen so far in the in the biosimilar Humira market and then also, you know, the early days of the Stellara market, you know, how do you see those two markets evolving? Do you expect Stellara to kind of just mirror Humira and then additional kind of, you know, large PBM based markets that kinda look similar, or or just how do you how do guys think about what those will look like in in a few years?

Balaji Prasad, Chief Strategy Officer, Alvotech: So we’ve seen how let me start with biosimilar Humira. As we have said, we expect we ended last year with around 20% of the Humira market converting to biologics, to biosimilars, big pharma. 2025, we believe this could be around 50% of the market would convert to We expect this to ramp into 2026. Probably at some point, this will plateau in late maybe in 2026, it could plateau. But at least for the next six quarters, we expect this to the market conversion to continue to evolve.

We have said that we expect to be in the in the low double digits market by with Basmone and Emera. And moving on to Stellara, it’s still early days in terms of market formation. But Stellar, again, let me remind remind you that it’s a story which is not just US focused for us. It’s also Europe. Europe, we have seen a US launch has gone well.

Europe has been a fantastic launch till now because in most of the countries, in every country that we are present in, we are either number one or number two in terms of market share. And our Japanese launch has gone on very well. So where we have a believe low single digit market share already. So beyond US, we’ve had multiple successes in multiple geographies with Basmir and Stellara. Basmir and Stellara will continue to ramp up into 2026, again, plateau at some point of time.

But if you look at our target 2028 of a billion point five revenues that we are targeting, and if you look at that, biosimilar Humira and biosimilar Stellara still contribute a substantial chunk of our revenues around 30 to 35%, which means that they may plateau, but they’re not going to fall off a cliff like most generic products would have done on day one eighty one after the exclusivity period. You will see in how they would go. That’s not going to be the case at all here. We will expect to see some natural dynamics of the business compressing some prices and all, but we also expect to see significant volume uptake too Mhmm. Into 2027, 2028 too with with these two assets.

Mhmm.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Mhmm. Great. Great. And then you touched on this a little bit in terms of, you know, some of the next assets you’ll be launching are in the medical benefit, and those could be more profitable even. In terms of kinda, like, longer term perspective, is there are there any nuances that that, you know, you guys keep in mind about across the different segments in terms of sustainability, you know, medical benefit, pharmacy benefit, or different therapeutic areas that you think are maybe more or less promising?

I

Balaji Prasad, Chief Strategy Officer, Alvotech: don’t think we necessarily tend to think of it as therapeutic areas per se. Ultimately, biosimilars, we can we can now have the capability to develop across therapeutic areas. It just so happens that our two set of launches have been in the immunology space, and next, we’ll have the we’ll have the buy and build space in oncology assets and some of the retinal assets coming into into into play, which is just the wave of patent expiry and everything else. But I don’t think there’s any therapeutic area which necessarily restricts us, and we don’t think about it in that terms.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Mhmm. Got it.

Balaji Prasad, Chief Strategy Officer, Alvotech: Got it.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Maybe shifting gears to kind of policy considerations. You know, at a high level, how do you see the the IRA impacting the biosimilars market? You know, what what do you view as the pros, and what do you view as the cons?

Balaji Prasad, Chief Strategy Officer, Alvotech: So I’ve had this one is still, I would say, working progress are are evolving, but we had multiple I’ve had multiple conversations with other managements, with the FDA, with the regulators over the last couple of years trying to figure figure this out. And the way we see it right now, I mean, IRA, I think some of the basic tenets is that there’s going to be negotiated prices for those biologics, which do not have biosimilars in development at all. Could this disincentivize future biosimilar programs? Possibly. But I think what it does is, like, especially some of the smaller players, small some of the smaller biosimilar players could be could be demotivated in developing these programs, which could mean that future assets could still be a limited competition opportunity for us.

I think it probably plays well for the larger for the larger biosimilar companies out there. That said, there are not too many biosimilar companies globally. We have, like, probably around close to a dozen. Mhmm. And some of the smaller ones could really not have the ability or the financial wherewithal to to invest into an area where they see policy uncertainty and regulatory uncertainty.

Mhmm. That would not necessarily be a bar for us.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Mhmm. And then as you think about kind of, you know, let’s say, you know, a drug is you know, it’s been Medicare negotiated, and so, obviously, that segment of the market compresses a little bit. Do you do you view that as kind of having any real impact in terms of the market opportunity for you guys?

Balaji Prasad, Chief Strategy Officer, Alvotech: It’s it’s a very good question, Matt. I don’t think so. Because, ultimately, if if the price of a drug goes if a biologic drug or an innovative drug goes down, will it diminish the market time time? Yes. But will in terms of our ability to generate, the return on cash that we would on the capital that we invest into our program, would it impact it substantially so that we don’t invest in the program?

Do not think so. Mhmm. So I think it’s still going to be a meaningful asset for us to work towards a biosimilar programs. Ultimately, the company’s goal while generating returns to our shareholders is also to provide access to low low cost, high quality biosimilars to patients across the world. Mhmm.

And we are not going to forget that vision too while man while balances with our ability to without need to generate returns on to our shareholders. Mhmm. Mhmm.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Okay. Maybe lastly, just kinda shifting to to tariffs. These have obviously been, you know, a big or potential pharmaceutical tariffs have been a big overhang on the sector, both both branded and generics and biosimilars.

Balaji Prasad, Chief Strategy Officer, Alvotech: Yeah.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: How are you all thinking about that risk at Alvetech? Kinda maybe at a high level. And then also, you know, for Alvetech specifically, are you how are you guys positioned?

Balaji Prasad, Chief Strategy Officer, Alvotech: Sure. Addressing both parts of the question at a high level and specifically for Alvetech, starting with Iceland. Iceland has one of the lowest tariff rates, 10%, because we we have a trade surplus versus The US. We import more than we export to The US. So which means that we would expect to face a tariff.

Iceland would expect to face a tariff of around 10%. So that puts us in a relatively comfortable position. Two, Alwatec specifically, our contracts are built or developed such that it is our commercial partners who take the cost of it from the moment. They take the product, control the product from the shipping way at whatever point in the supply chain. It’s their responsibility to bring bring it to The US, pay any import duties, pay any tariffs, and, sell it to the market.

So we have, put out our, PR around, three weeks ago where we stated that we expect the impact of tariffs for Almotek specifically because of these two points to be to be very, very minimal.

Matt Seltore, Generic Pharma Analyst, Goldman Sachs: Oh, interesting. Interesting. Yeah. Great. Well, with that, I think we’re we’re all out of time, but thank you, Blaji, very much for joining us.

Really appreciate your time.

Balaji Prasad, Chief Strategy Officer, Alvotech: Matt, thank you so much for the questions. Great speaking to you. And, again, thank you for inviting us and, to Goldman Sachs for inviting us to the conference. Thank you. Our pleasure.

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