Alvotech has spent years building a biosimilar platform that Wall Street has struggled to value through regulatory delays, manufacturing investment, and uneven commercial results. Bank of America now thinks the investment case is entering a different phase, one that could leave substantial upside for shareholders if the company executes.
The bank initiated coverage of Alvotech (ALVO) with a Buy rating and a $7 price objective, implying roughly 58% upside from the $4.43 reference price in its Aug. 24 report. BofA said in a note given to TheStreet that the company is approaching an “important inflection point” as attention shifts toward product launches, revenue growth, and returns on years of platform spending.
Alvotech’s FDA overhang begins to ease
A major part of BofA’s thesis centers on a regulatory issue that had weighed on Alvotech’s outlook. The FDA closed its May inspection of the company’s Reykjavik manufacturing facility in July and classified the site as Voluntary Action Indicated, allowing the company to keep advancing several pending applications.
Alvotech said it had resubmitted Biologics License Applications for AVT05, its proposed biosimilar to Simponi, and AVT06, its proposed biosimilar to Eylea. The FDA also accepted the application for AVT16, a proposed biosimilar to Entyvio, in June. BofA sees the inspection closure as removing a key obstacle that had clouded the timing of future U.S. approvals.
The setup is important as biosimilars can enter the market through an abbreviated FDA pathway once they demonstrate they are highly similar to an approved reference biologic and have no clinically meaningful differences in safety or effectiveness. The FDA says that process can reduce development time and cost while preserving its approval standards.
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Bank of America sees a major launch cycle ahead
BofA believes Alvotech is approaching its most meaningful product launch cycle since the company was founded. Near-term opportunities include biosimilars to Simponi and standard-dose Eylea, followed by Entyvio, with a high-dose Eylea candidate offering a potentially larger opportunity later in the decade.
The bank is particularly bullish on the mix of products Alvotech is pursuing. Several pipeline assets target provider-administered, buy-and-bill markets, where BofA sees more favorable adoption and pricing dynamics than in crowded pharmacy-benefit categories such as Humira and Stelara.
That distinction could become important as Alvotech’s existing business scales. The company reported adjusted first-half 2026 revenue of $211.9 million, down from $306.1 million a year earlier, while adjusted EBITDA fell to $46.9 million from $53.7 million. Alvotech still maintained full-year guidance for revenue of $650 million to $700 million and adjusted EBITDA of $180 million to $220 million.
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BofA expects those numbers to improve as manufacturing utilization rises and more products reach the market. Its model calls for EBITDA growth of roughly 34% annually over three years and 28% annually over five years from a 2025 base of $137 million, with product revenue gradually becoming a larger part of the company’s mix.
Alvotech also continues to lean on partners rather than building a large commercial organization itself. The company expanded that model on Aug. 21 through a licensing and commercialization agreement with Lotus Pharmaceutical covering proposed biosimilars to Imfinzi and Hemlibra in the U.S. and selected Asian markets.
Alvotech still has to prove the thesis
The bullish case comes with several clear risks. BofA flagged slower-than-expected commercial adoption, deeper pricing pressure, manufacturing execution problems, regulatory delays, and intellectual-property disputes that could push back launches.
Standard-dose Eylea could also enter a crowded market, while the longer-term opportunities in Entyvio and high-dose Eylea depend partly on how patent disputes develop. Those uncertainties leave commercial execution at the center of the story as the regulatory picture improves.
For BofA, the appeal is that Alvotech has already absorbed much of the cost of building its platform. If the next wave of launches translates into higher utilization, stronger margins, and durable market share, the bank believes the stock could finally begin reflecting the commercial value of that investment.
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