Alvotech Raises $300 Million to Develop Biosimilars

Drug maker Alvotech announced this week that it has raised $300 million, through a private bond offering, that it will used to continue its growth, refinance debt, and further develop its biosimilar pipeline.

In a statement, Alvotech’s founder, Robert Wessman, said that the cash infusion would help the company to further its biosimilar development and fund its clinical studies, “the results of which bring significant potential for healthcare providers around the world to drive healthcare savings and expand patient access to high-quality biosimilars.”

The Iceland-headquartered biosimilar developer, founded in 2013 by Wessman, has 6 monoclonal antibodies in its pipeline. To date, the company has not disclosed the specific biosimilars that it is developing, saying only that the products target cancer, autoimmune diseases, inflammatory conditions, and other disease states. Alvotech has previously said that it anticipates the first of its products to be brought to market by 2020.

Last month, Fuji Pharma announced that it had acquired a 4.2% stake—worth approximately $50 million—in Alvotech. That acquisition came shortly on the heels of an announcement that the 2 companies would partner to commercialize Alvotech’s entire pipeline of biosimilars in the Japanese market.

Through the partnership agreement, Alvotech will be responsible for the development and supply of biosimilars, while Fuji Pharma will be responsible for filing the products with Japan’s regulatory agency, as well as the commercialization of the approved biosimilars.

Additionally, in 2018, Alvotech forged an agreement with Changchung High & New Technology Industries Group to enable the development, manufacture, and commercialization of biosimilars in China.

In order to keep pace with its anticipated supply needs, Alvotech recently built a new state-of-the-art biopharmaceutical facility in Reykjavik, Iceland, which was granted licensure by the Icelandic Medicines Agency, together with the Irish Health Products Regulatory Authority, in 2018. Additionally, the company owns manufacturing plants in Germany and Switzerland.

Other key shareholders in Alvotech include controlling shareholder Aztiq Pharma AB, led by Wessman, and generic pharmaceutical company Alvogen.