Alvotech(US:ALVO)2024-08-15 20:10Financial Performance - Product revenue for the six months ended June 30, 2024, was $65.9 million, a significant increase from $22.7 million for the same period in 2023[7]. - License and other revenue rose to $169.7 million for the six months ended June 30, 2024, compared to a loss of $2.5 million in the same period of 2023, driven by multiple R&D milestones[8]. - Operating profit for the six months ended June 30, 2024, was $43,447 thousand, a turnaround from an operating loss of $189,101 thousand in the prior year[28]. - The Group's revenue for the six months ended 30 June 2024 was $235.6 million, a significant increase from $20.3 million in the same period of 2023[53]. - Product revenue recognized in 2024 was $65.9 million, compared to $22.7 million in 2023, while license revenue surged to $68.1 million from $7.6 million[53]. - The total comprehensive loss for the six months ended June 30, 2024, was $153.4 million, reflecting the company's ongoing operational challenges[44]. Expenses and Losses - Research and development expenses decreased slightly to $97.5 million for the six months ended June 30, 2024, from $99.6 million in the same period of 2023[11]. - General and administrative expenses were reduced to $29.6 million for the six months ended June 30, 2024, down from $41.9 million in the same period of 2023[12]. - The net loss for the six months ended June 30, 2024, was $153.5 million, or $(0.61) per share, compared to a net loss of $86.6 million, or $(0.39) per share, for the same period in 2023[12]. - The company reported a loss for the period of $(153,504) thousand for the first half of 2024, compared to a loss of $(86,854) thousand in the same period of 2023[28]. - For the six months ended June 30, 2024, the company reported a net loss of $153.5 million, compared to a net loss of $86.9 million for the same period in 2023, reflecting an increase in losses of approximately 76.7%[44]. Cash and Borrowings - As of June 30, 2024, Alvotech had $10.9 million in cash and cash equivalents and borrowings of $1,055.9 million, including $999.0 million in current borrowings[7]. - The company entered into a $965 million Facility in June 2024 to improve capital costs and address upcoming debt maturities[17]. - The Group's total outstanding borrowings increased to $1,055,913 million as of June 30, 2024, compared to $960,159 million at the end of 2023, reflecting a 10% increase[83]. - Cash used in operating activities was $(126,000) thousand for the six months ended June 30, 2024, slightly improved from $(128,002) thousand in the same period of 2023[37]. - The company had cash and cash equivalents of $10.9 million as of June 30, 2024, with current assets less current liabilities amounting to ($917.3) million[44]. Assets and Equity - Total assets increased to $1,068,478 thousand as of June 30, 2024, up from $950,090 thousand at the end of 2023, reflecting a growth of approximately 12.4%[31]. - The total equity position improved to $(605,922) thousand as of June 30, 2024, compared to $(932,493) thousand at the end of 2023, indicating a reduction in accumulated deficit[34]. - The accumulated deficit reached $2,359.3 million, up from $2,205.8 million as of December 31, 2023, indicating ongoing financial challenges[44]. Share Issuance and Financing - Alvotech issued approximately 22.1 million new shares on July 1, 2024, corresponding to approximately $221.1 million from the conversion of 2022 Convertible Bonds[20]. - The company recognized a capital contribution of $144.6 million during the first half of 2024, contributing to its equity position[44]. - The Group issued approximately 22.1 million new shares from the conversion of 2022 Convertible Bonds, corresponding to an aggregate value of approximately $221.1 million[50]. Regulatory Approvals and Collaborations - Alvotech's AVT04 biosimilar to Stelara received FDA approval in April 2024, with commercialization expected to start on or after February 21, 2025[13]. - The company announced a collaboration with Dr. Reddy's Laboratories for the commercialization of AVT03, a biosimilar candidate to Prolia and Xgeva, with exclusive rights in the U.S.[45]. - The FDA also approved SIMLANDI, an interchangeable biosimilar to Humira, which had U.S. sales of nearly $12.2 billion in 2023[49]. Inventory and Costs - The Group's inventory balance increased to $96,574 million as of June 30, 2024, up from $74,433 million at the end of 2023, representing a 30% increase[77]. - The Group recognized $32.0 million in cost of inventory within cost of goods sold during H1 2024, compared to $16.5 million in H1 2023, indicating a 94% increase[76]. Financial Ratios and Tax - The effective tax rate for the six months ended 30 June 2024 was (3.5)%, compared to 36.5% in the same period of 2023, reflecting a tax charge and a tax benefit, respectively[60]. - The weighted-average interest rate of outstanding borrowings was 12.80% for H1 2024, slightly up from 12.73% for the twelve months ended 31 December 2023[82].