Alvotech launches $125 million share sale, then prices 22,666,667 shares at $3.750

Alvotech (Nasdaq: ALVO) launched an underwritten public offering of ordinary shares on June 15, 2026, alongside a concurrent private placement to investors in the European Economic Area. The June 15 release expected about $125 million from the two pieces together. A supplement dated June 15, 2026 sets the public offering at 22,666,667 shares at $3.750 each, or $85,000,001.25 in total.

The pricing and the private placement

Underwriting commissions are $0.225 a share, or $5,100,000.08. Proceeds to the company before expenses are $3.525 a share, or $79,900,001.18, and Alvotech estimates net proceeds of approximately $79.21 million. The underwriters have a 30-day option to buy up to 3,400,000 more shares. The shares closed at $4.24 on Nasdaq on June 15, 2026, so the offering price is below the market.

On June 16, the company agreed with investors in the European Economic Area to sell 17,826,666 shares at the public offering price, for gross proceeds of about $66.85 million, or approximately $64.51 million net. That sale depends on the public offering closing and is expected within seven business days after it. The public offering does not depend on it.

Banks and the stock program

BofA Securities, Inc., Jefferies LLC and Evercore Group L.L.C. act as representatives of the underwriters. The cover lists BofA Securities, Jefferies and Evercore ISI as joint book-running managers. They take 7,933,333, 7,933,333 and 6,800,001 shares. Officers, directors and certain shareholders agreed to a 90-day lock-up. On June 15, Alvotech told Jefferies it was suspending its at-the-market program under a June 14, 2024 sales agreement. It will make no sales under it until a new prospectus supplement or registration statement is filed.

Debt, cash and dilution

Alvotech says it will use the money to fund its biosimilar assets, plus working capital and general corporate purposes, which may include repaying or refinancing debt. The supplement shows how much debt sits ahead of new investors. At March 31, 2026, cash and cash equivalents were $63,832 thousand, against total borrowings of $1,309,631 thousand, of which $42,514 thousand were current. The accumulated deficit was $2,408,760 thousand and total equity was a deficit of $282,312 thousand, or $138,595 thousand after the two sales.

The 20-F filed March 31, 2026 says a secured loan facility had $1,031.6 million outstanding at December 31, 2025, at SOFR plus 6.0%, paid in cash. A $100 million senior term loan maturing December 31, 2027 carries a 12.50% fixed rate. The company also issued 6.875% convertible bonds due 2030 with an initial conversion price of $5.9224, plus a one-time reset if it completes qualifying equity raises of at least $50 million within 24 months of issuance. The $3.750 price sits below that conversion price, and the filings do not say whether this sale counts as a qualifying raise.

The supplement puts as adjusted net tangible book value at $(270.7) million, or $(0.77) per share, an immediate dilution of $4.52 per share to new investors. There were 312,153,164 shares outstanding at March 31, 2026, and 334,819,831 after the public offering.

The FDA problem behind the story

The supplement discloses that in the fourth quarter of 2025 the company and its partner received complete response letters from the FDA on the applications for AVT05, AVT06 and AVT03. The letters cited deficiencies at the Reykjavik manufacturing facility found in a July 2025 pre-license inspection. A May 2026 routine inspection ended with an FDA Form 483, and Alvotech says it has responded.

On June 4, 2026, it resubmitted the applications for AVT05 and AVT06, which it makes for Teva, and expects a six-month FDA review. AVT03 is partnered with Dr. Reddy's Laboratories Ltd. The application for AVT16 was accepted for review on June 8, with a review period of up to 12 months. In May 2026 it announced a manufacturing agreement with FUJIFILM Biotechnologies.

The biosimilar business

The release describes Alvotech as a biotechnology company developing and manufacturing biosimilar medicines. It says five are approved and marketed in multiple markets, including biosimilars to Humira, Stelara, Simponi, Eylea and Prolia and Xgeva, and that nine candidates are disclosed. Those are the company's claims. The company has commercial partners in the United States, Europe, Japan and China, among other markets.

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