Alvotech Secures Term Loan Facility of USD 100 Million

Rhea-AI Summary

Alvotech (NASDAQ: ALVO) secured a USD 100 million senior term loan facility maturing in December 2027 to bolster liquidity and support R&D and global product launches through 2026. The loan carries a 12.50% annual interest rate, payable monthly in cash, and replaces the company's prior working capital ABL, giving access to the full USD 100 million during the two-year term.

The financing was led by GoldenTree Asset Management and follows prior refinancing and repricing actions, including a repriced facility at SOFR+6.0% (~9.8%) and a USD 108 million convertible bond placing due 2030.

Positive

• Secured USD 100M term loan maturing December 2027
• Provides full access to USD 100M over two-year term
• Supports planned four global product launches through 2026
• Led by GoldenTree, signaling investor backing

Negative

• High 12.50% cash interest rate increases financing cost
• Two-year maturity may require refinancing by Dec 2027

Key Figures

Term loan size USD 100 million Senior term loan facility replacing prior working capital ABL

Loan maturity 2 years Senior term loan facility maturing in December 2027

Loan interest rate 12.50% Interest on USD 100 million senior term loan, payable monthly in cash

R&D pipeline size 30 products Number of biosimilar products currently in development

Planned launches 4 products New global product launches supported through 2026

Convertible bonds USD 108 million Senior unsecured convertible bonds due 2030 recently placed

Repriced facility spread SOFR + 6.0% Interest rate on existing facility after June 2025 repricing

Repriced facility rate 9.8% Equivalent rate based on 30-day average SOFR of ~3.8%

Market Reality Check

$5.00 Last Close

Volume Volume 321,074 is below the 20-day average of 638,391 (relative volume 0.5x). low

Technical Shares at $5.13 are trading below the 200-day MA at $8.24, and about 62.55% under the 52-week high.

Peers on Argus

Peers in Specialty & Generic drugs show mixed moves: SUPN -0.6%, ANIP -0.84%, INDV +0.5%, others flat. ALVO’s +1.61% move appears more company-specific than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 29	Own-share notification	Neutral	-5.5%	Regulatory filing on changes in the company’s own shares with CSSF.
Dec 22	Financial calendar	Neutral	+0.8%	Release of 2026 financial reporting and AGM schedule for investors.
Dec 22	Product launch Europe	Positive	+0.8%	European launch of Gobivaz, first biosimilar to Simponi via Advanz Pharma.
Dec 19	US settlement AVT06	Positive	+3.6%	Settlement with Regeneron enabling potential U.S. entry for AVT06 from Q4 2026.
Dec 17	Convertible bond financing	Positive	-0.8%	USD 108M senior unsecured convertible bonds to fund R&D and launches.

Pattern Detected

Recent financing and partnership news skew positive, but price reactions have been mixed, with at least one positive financing update followed by a negative move.

Recent Company History

Over the last few weeks, Alvotech announced several strategic milestones. A significantly oversubscribed USD 108 million convertible bond issue funded R&D, capacity expansion and four global launches through 2026. The company then secured a U.S. settlement and license for AVT06, targeting a potential launch from Q4 2026, and announced the first European biosimilar to Simponi, Gobivaz. Alongside routine items like a 2026 financial calendar and own-share notifications, today’s term loan facility extends this financing theme by further reinforcing liquidity for its biosimilar pipeline.

Market Pulse Summary

This announcement adds another building block to Alvotech’s capital structure. A new USD 100 million senior term loan at 12.50% complements the recently issued USD 108 million convertible bonds, expanding resources for a 30-product biosimilar pipeline and four planned global launches through 2026. With shares trading below the 200-day MA, investors may track execution on R&D milestones, commercialization progress and future financing terms to assess balance-sheet flexibility.

Key Terms

senior term loan facility financial

"USD 100 million senior term loan facility with a 2-year maturity"

A senior term loan facility is a structured loan a company takes from banks or lenders with a fixed repayment schedule and set interest rate; “senior” means those lenders have first claim on the company’s cash or assets if things go wrong. Investors care because it sets borrowing cost and repayment priority—like a first mortgage on a house, it is lower risk for lenders and can limit what equity holders or junior creditors receive in a restructuring.

biosimilar medical

"specializing in the development and manufacture of biosimilar medicines"

A biosimilar is a medicine created to be highly similar to an existing complex drug made from living cells, matching its safety and effectiveness while allowing for small, natural variations. For investors, biosimilars matter because they introduce lower-cost competition when patents end, which can cut prices, shift market share, and change revenue forecasts for companies selling the original drugs, much like a generic version does for simpler chemical medicines.

R&D medical

"support execution across Alvotech’s R&D pipeline and global product launches"

Research and development (R&D) is the work a company does to discover new products, improve existing ones, or develop better ways of making things — like a kitchen testing recipes to create a hit dish. For investors it matters because R&D is where future sales and competitive advantages are born, but it also uses cash and carries risk, so R&D spending and outcomes signal a company’s growth potential and uncertainty.

convertible bonds financial

"successful placing of USD 108 million senior unsecured convertible bonds due 2030"

A convertible bond is a loan a company issues that pays regular interest and can be exchanged for a fixed number of the company’s shares under specified terms. It matters to investors because it combines the steady income and lower downside risk of a bond with the upside potential of owning stock—like holding a ticket that can be cashed for equity if the share price rises—affecting returns, risk, and shareholder dilution.

senior unsecured convertible bonds financial

"successful placing of USD 108 million senior unsecured convertible bonds due 2030"

A debt instrument that behaves like a loan carrying regular interest payments but gives the holder the option to convert the loan into the issuer’s stock. "Senior" means it ranks ahead of many other debts when the company pays creditors, while "unsecured" means there is no specific asset pledged as collateral, so recovery in default can be limited. Investors get steady income plus potential upside if the stock rises, but face higher credit risk than secured lenders and possible share dilution on conversion.

SOFR financial

"repricing of its existing facility to an interest rate of SOFR plus 6.0% per annum"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

AI-generated analysis. Not financial advice.

• USD 100 million senior term loan facility with a 2-year maturity
• Strengthens liquidity to support execution across Alvotech’s R&D pipeline and global product launches through 2026
• Led by GoldenTree Asset Management
  
  

REYKJAVIK, ICELAND (December 31, 2025) — Alvotech (NASDAQ: ALVO), a global biotechnology company specializing in the development and manufacture of biosimilar medicines for patients worldwide, today announced a USD 100 million senior term loan facility with maturity in December 2027 aimed at strengthening liquidity and supporting the execution of Alvotech’s strategic priorities in 2026.

“This USD 100 million financing underscores the long-term commitment of our financing partners at GoldenTree and their alignment with Alvotech’s strategy,” said Robert Wessman, Chairman and CEO of Alvotech. “Their support strengthens our ability to execute on our growth plans, invest in R&D, and deliver high-quality biosimilars to patients worldwide.”

With the transaction, led by GoldenTree Asset Management, Alvotech secures financing from investors who share the Company’s confidence in its ability to execute, and the scale, quality and commercial potential of its biosimilar product pipeline. Alvotech remains committed to advancing its R&D pipeline, which currently includes 30 products in development and ranks among the most valuable biosimilar portfolios in the industry. In parallel, the Company continues to expand its production capacity and strengthen its supply chain to support four new global product launches through 2026.

The transaction, a senior term loan facility in an aggregate principal amount of USD 100 million, bears an interest rate of 12.50%, payable monthly in cash, and has a maturity date of 2 years. The transaction replaces the Company’s previously disclosed working capital facility (ABL) and provides Alvotech with access to the full USD 100 million throughout the term of the loan. This structure offers enhanced operational flexibility.

This term loan facility follows the successful arrangement of a strategic refinancing transaction maturing in June 2029, also led by GoldenTree Asset Management, as announced in June 2024. In addition, Alvotech announced in June 2025 the repricing of its existing facility to an interest rate of SOFR plus 6.0% per annum, equivalent to approximately 9.8% based on the 30-day average SOFR rate of ~3.8%

Further reinforcing its capital structure, Alvotech recently announced the successful placing of USD 108 million senior unsecured convertible bonds due 2030. Together these transactions position the Company to maintain its leading position and investment into its biosimilar development pipeline.

For further information, please contact:

Media
Benedikt Stefansson, VP Investor Relations and Global Communications
Sarah Macleod, Head of Global Communications
alvotech.media@alvotech.com

Investor Relations
Balaji Prasad, Chief Strategy Officer
Patrik Ling, VP Investor Relations Scandinavia (SE)
Benedikt Stefansson, VP Investor Relations and Global Communications (IS)
alvotech.ir@alvotech.com

About Alvotech
Alvotech is a biotechnology company, founded by Robert Wessman, focused solely on the development and manufacture of biosimilar medicines for patients worldwide. Alvotech seeks to be a global leader in the biosimilar space by delivering high-quality, cost-effective products and services, enabled by a fully integrated approach and broad in-house capabilities. Five biosimilars are already approved and marketed in multiple global markets, including biosimilars to Humira® (adalimumab), Stelara® (ustekinumab), Simponi® (golimumab), Eylea® (aflibercept) and Prolia®/Xgeva® (denosumab). The current development pipeline includes nine disclosed biosimilar candidates aimed at treating autoimmune disorders, eye disorders, osteoporosis, respiratory disease, and cancer. Alvotech has formed a network of strategic commercial partnerships to provide global reach and leverage local expertise in markets that include the United States, Europe, Japan, China, and other Asian countries and large parts of South America, Africa and the Middle East. For more information, please visit https://www.alvotech.com. None of the information on the Alvotech website shall be deemed part of this press release.

For more information, please visit our investor portal, and our website or follow us on social media on LinkedIn, Facebook, Instagram and YouTube.

Alvotech Forward Looking Statements
Certain statements in this communication may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include, for example, Alvotech’s expectations regarding competitive advantages, business prospects and opportunities including pipeline product development, future plans and intentions, regulatory submissions, review and interactions, the potential approval and commercial launch of its product candidates, the timing of regulatory approval, market launches and financial projections. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Alvotech and its management, are inherently uncertain and are inherently subject to risks, variability, and contingencies, many of which are beyond Alvotech’s control. Factors that may cause actual results to differ materially from current expectations include, but are not limited to factors set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in documents that Alvotech may from time-to-time file or furnish with the SEC. There may be additional risks that Alvotech does not presently know or that Alvotech currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by an investor as, a guarantee, assurance, prediction or definitive statement of a fact or probability. Alvotech does not undertake any duty to update these forward-looking statements or to inform the recipient of any matters of which any of them becomes aware of which may affect any matter referred to in this communication. Alvotech disclaims any and all liability for any loss or damage (whether foreseeable or not) suffered or incurred by any person or entity as a result of anything contained or omitted from this communication and such liability is expressly disclaimed.

FAQ

What are the key terms of Alvotech's USD 100 million loan (ALVO)?

The facility is a USD 100M senior term loan at 12.50% interest, payable monthly, maturing in December 2027.

How does the ALVO term loan affect Alvotech's liquidity for 2026?

It provides access to the full USD 100M and is intended to strengthen liquidity to fund R&D and four global launches through 2026.

Who led the USD 100M financing for Alvotech (ALVO)?

The transaction was led by GoldenTree Asset Management with financing from aligned investors.

Does the new ALVO loan replace any prior facility?

Yes; it replaces the company's previously disclosed working capital ABL and provides enhanced operational flexibility.

How does this loan relate to Alvotech's other recent financings?

It follows a June 2024 refinancing led by GoldenTree, a June 2025 repricing to SOFR+6.0% (~9.8%), and a USD 108M convertible bond placing due 2030.