ALVO Stock Trades Near 52-Week Low: Should You Buy, Hold or Sell?

Core Insights - Alvotech's shares closed at $8.16, near its 52-week low of $7.35, due to investor concerns over competition and potential tariffs on pharmaceutical imports [1][2] - The company's stock has declined 38% this year, underperforming the industry and the S&P 500, which grew by 5% [2] Company Performance - Alvotech's product revenues surged over 200% year-over-year in the first half of 2025, reaching nearly $205 million, driven by sales of its biosimilars Simlandi and Selarsdi [8] - The company maintains a sales guidance range of $600-$700 million for the full year 2025 [9] Strategic Partnerships - Alvotech differentiates itself through a collaboration-based business model, partnering with established companies like Teva Pharmaceuticals and Dr. Reddy's Laboratories to mitigate commercial risks [6][7] - Recent EU approval for Mynzepli, a biosimilar for Regeneron's Eylea, expands Alvotech's portfolio into the ophthalmology space [10] Competitive Landscape - Alvotech faces stiff competition in the biosimilar market, with numerous players vying for market share in established therapeutic areas [12] - Increased competition may lead to lower pricing flexibility and compressed profit margins, particularly in price-sensitive regions [13] Financial Metrics - Alvotech's stock trades at a premium to the industry, with a price/sales ratio of 3.32 compared to the industry's 2.16 [14] - Recent estimates for Alvotech's 2025 and 2026 EPS have improved significantly, indicating potential growth [16] Future Outlook - The company is expected to secure additional approvals for biosimilars by year-end, which could drive top-line growth [18] - Alvotech is investing in long-term development capabilities through strategic acquisitions, enhancing its operational footprint [19]