Alvotech (ALVO) Valuation Check After Global Eylea Biosimilar Settlement And Market Access Milestone

Why this Eylea biosimilar settlement matters for Alvotech (ALVO)

Alvotech (ALVO) has reached a worldwide licensing and settlement agreement with Regeneron and Bayer over its aflibercept biosimilar, securing rights to manufacture and supply the product across key global markets.

The deal sets out specific launch windows from early 2026 in the United Kingdom, Canada, Japan and the European Economic Area, with a previously agreed fourth quarter 2026 license entry date for the U.S., subject to regulatory approval.

See our latest analysis for Alvotech.

Investors have already reacted to the settlement, with a 1 day share price return of 2.46% taking Alvotech to US$5.42. This capped a year to date share price return of 8.40%, but it came alongside a 1 year total shareholder return decline of 56.33%, indicating that momentum has been rebuilding only in the very short term.

If this kind of legal win has you thinking about where else growth stories could emerge in healthcare, it might be worth scanning healthcare stocks as a starting point for fresh ideas.

With Alvotech trading at US$5.42, sitting on a large implied discount to analyst price targets and a mixed recent return profile, the real question is whether this Eylea deal leaves upside on the table or if the market is already pricing in future growth.

Most Popular Narrative: 75.5% Undervalued

Alvotech’s most followed narrative pegs fair value at about $22.17 per share versus the last close at $5.42, setting up a wide gap investors will want to understand.

Ongoing launch and approval pipeline activity, including upcoming regulatory decisions in major global markets (for AVT03, AVT05, AVT23, and others), positions the company to tap into blockbuster biologic markets coming off patent, potentially driving a step change in topline revenue once approvals are secured.

Read the complete narrative.

Curious how this pipeline view translates into that higher fair value estimate and still uses a discount rate near 8%? The growth, margin, and earnings assumptions behind it are anything but ordinary. The full narrative lays out a detailed roadmap that the current $5 handle does not fully reflect.

Result: Fair Value of $22.17 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, those upside assumptions collide with real pressure points, including FDA inspection issues at Reykjavik and heavy reliance on milestone payments that can shift or stall.

Find out about the key risks to this Alvotech narrative.

Build Your Own Alvotech Narrative

If you look at the numbers and story differently, you can stress test every input yourself and shape a view in minutes with Do it your way.

A great starting point for your Alvotech research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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