Alvotech Secures Term Loan Facility of USD 100 Million

Core Viewpoint - Alvotech has secured a USD 100 million senior term loan facility to enhance liquidity and support its strategic priorities, particularly in R&D and global product launches through 2026 [1][2]. Financing Details - The senior term loan facility amounts to USD 100 million with a maturity date in December 2027 and an interest rate of 12.50%, payable monthly in cash [3]. - This financing replaces a previously disclosed working capital facility and provides Alvotech with full access to the USD 100 million throughout the loan term, offering enhanced operational flexibility [3]. Strategic Implications - The financing is led by GoldenTree Asset Management, reflecting their long-term commitment and alignment with Alvotech's growth strategy [2]. - Alvotech's R&D pipeline includes 30 products in development, positioning it among the most valuable biosimilar portfolios in the industry [2]. - The company is also expanding its production capacity and strengthening its supply chain to support four new global product launches through 2026 [2]. Recent Financial Activities - This term loan follows a strategic refinancing transaction maturing in June 2029, also led by GoldenTree, and a recent repricing of an existing facility to an interest rate of SOFR plus 6.0%, approximately 9.8% based on the 30-day average SOFR rate of ~3.8% [4]. - Alvotech has successfully placed USD 108 million in senior unsecured convertible bonds due 2030, further reinforcing its capital structure [4]. Company Overview - Alvotech is focused on developing and manufacturing biosimilar medicines, aiming to be a global leader in the biosimilar space by delivering high-quality, cost-effective products [5]. - The company has five biosimilars approved and marketed in multiple global markets, with a current development pipeline that includes nine disclosed biosimilar candidates targeting various diseases [5].