Alvotech(US:ALVO)2024-03-20 20:30Financial Performance - Total revenues for Alvotech in 2023 were $93.4 million, representing a 10% increase from the previous year[1] - Product revenues reached $48.7 million in 2023, nearly doubling from $24.8 million in 2022, with Q4 2023 product revenues of $18.9 million, up 37% year-over-year[1] - The company reported a loss of $551.7 million for the year, or ($2.43) per share, compared to a loss of $513.6 million, or ($2.60) per share, in the prior year[15] - Total operating loss for 2023 was $354.9 million, compared to a loss of $346.4 million in 2022[28] - Basic and diluted loss per share for 2023 was $(2.43), slightly improved from $(2.60) in 2022[28] Revenue Breakdown - License and other revenue decreased to $42.7 million in 2023 from $58.2 million in 2022[28] - Combined worldwide revenues from sales of Simponi and Simponi Aria were approximately $2.2 billion in 2023[4] Research and Development - R&D expenses increased to $210.8 million in 2023, up from $180.6 million in the previous year, driven by new clinical development costs[10] - Research and development expenses increased to $210.8 million in 2023, up from $180.6 million in 2022[28] - Positive top-line results were reported from a confirmatory efficacy study for AVT06, a proposed biosimilar to Eylea, demonstrating therapeutic equivalence[5] Asset and Equity Position - Total assets as of December 31, 2023, were $950.1 million, compared to $828.4 million in 2022[30] - Total equity decreased to $(932.5) million in 2023 from $(564.4) million in 2022[30] - Non-current liabilities rose to $1.6 billion in 2023, up from $1.2 billion in 2022[30] Cash Flow and Liquidity - Cash and cash equivalents decreased significantly to $11.2 million in 2023 from $66.4 million in 2022[30] - Operating cash flow before movement in working capital was negative at $(283,554), worsening from $(228,861) in the prior period[31] - Net cash used in operating activities was $(312,185), slightly down from $(312,389) in the previous year[31] - Cash used in operations totaled $(257,226), compared to $(276,751) in the prior period, indicating a reduction in cash outflow[31] - Cash and cash equivalents at the end of the year were $11,157, compared to $66,427 at the beginning of the year, indicating a significant decrease[34] Expenses and Costs - General and administrative expenses decreased to $76.6 million in 2023, down from $186.7 million in 2022, primarily due to a non-cash share listing expense[11] - Share-based payments increased to $18,033, up from $10,317, reflecting a growth of 74% year-over-year[31] - Finance costs rose significantly to $267,157, compared to $188,419 in the previous period, marking an increase of 42%[31] - Interest paid increased to $(57,254), up from $(35,372), representing a rise of 62%[31] Strategic Developments - Alvotech's Simlandi™ biosimilar to Humira was approved in the U.S. as the first high-concentration biosimilar with interchangeable status[1] - Sales of Jamteki™, a biosimilar to Stelara, commenced in Canada, with launches expected in Japan in Q2 2024 and Europe in Q3 2024[2] - Alvotech accepted an offer for the sale of 10,127,132 ordinary shares for approximately $166 million to strengthen production capacity and support biosimilar launches[6] Other Financial Metrics - The increase in trade and other payables was $31,772, up from $16,442, showing a growth of 93%[31] - The company experienced an impairment loss on investment in joint ventures amounting to $21,519, with no prior period loss reported[31] - The company reported an income tax benefit of $(99,318), compared to $(38,067) in the previous period, indicating a larger tax benefit[31]