Alvotech announced a USD $100 million senior term loan facility that matures in December 2027, with a 12.50% annual interest rate payable monthly in cash. The facility, led by GoldenTree Asset Management, replaces the company’s prior working‑capital line and provides full access to the principal throughout the two‑year term, giving Alvotech immediate liquidity to fund its 2026 expansion plans.
The loan is part of a broader capital‑structure strategy that follows a $108 million senior unsecured convertible bond placement due 2030 and a June 2025 refinancing of an existing facility. The high interest rate reflects the company’s perceived risk profile but also offers operational flexibility, allowing the firm to scale production, advance its biosimilar pipeline, and pursue new market opportunities without the constraints of a revolving credit line.
Alvotech’s 2025 first‑nine‑month results show total revenue of $420 million, up 24% year‑over‑year, driven by an 85% jump in product and service revenue to $237 million. License and other revenue fell 13% to $182 million, underscoring the company’s focus on its biosimilar portfolio. The firm currently has 30 products in development and plans four global launches through 2026, positioning the new financing as a key enabler of that pipeline.
Management emphasized the strategic fit of the loan, with Chairman and CEO Robert Wessman stating, “This USD $100 million financing underscores the long‑term commitment of our financing partners at GoldenTree and their alignment with Alvotech’s strategy.” He added that the support strengthens the company’s ability to execute growth plans, invest in R&D, and deliver high‑quality biosimilars worldwide.
Alvotech also faces regulatory headwinds, having received a Complete Response Letter from the FDA for its AVT05 Biologics License Application in November 2025 after a July 2025 inspection of its Reykjavik facility. The loan therefore provides a buffer against potential delays in product launches while the company works to resolve the deficiencies identified by the FDA.
The financing signals confidence in Alvotech’s growth trajectory, but the high cost of capital and ongoing regulatory challenges highlight the need for disciplined execution and continued investment in its biosimilar pipeline.
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