Alvotech Q2 2025 Earnings Call Transcript

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Provided by Quartr
August 14, 2025

Key Takeaways

  • Positive Sentiment: Revenue up 30% year-on-year in H1 2025 to $306 million, marking the fifth consecutive quarter of positive adjusted EBITDA and generating $77 million in operating cash flow, a $161 million improvement over last year.
  • Positive Sentiment: Market share gains for Humira and Stelara biosimilars, with Simlanti/Hukyndra reaching over 40% of the US Humira market and Selarsty/OUSK Provo surpassing 20% of the US Stelara market and holding top-two positions across key European markets.
  • Neutral Sentiment: The company has maintained full-year guidance, noting expected lumpiness with softer Q3 revenues and milestone recognition ahead of a stronger Q4 finish.
  • Positive Sentiment: Expanded pipeline with BLAs under review for biosimilars to Prolia, Eylea, Soliris and Stelara ARIA, along with new licensing partnerships with Advanced Pharma and Dr. Reddy’s for a Keytruda biosimilar.
  • Positive Sentiment: Strategic acquisitions and listing: closed R&D deals for Xbrane’s operations and IVS Lee packaging, and completed a Nasdaq Stockholm listing to broaden the shareholder base and improve liquidity.
AI Generated. May Contain Errors.
Earnings Conference Call
Alvotech Q2 2025
00:00 / 00:00

Transcript Sections

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Operator

Good day, and thank you for standing by. Welcome to the Alvetaq Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. After the speakers' presentation, there will be the question and answer session. Please be advised that today's conference is being recorded.

Operator

I would now like to hand the conference over to our first speaker today, Benedict Stefansson, Vice President of Investor Relations and Global Communication. Please go ahead, sir.

Benedikt Stefansson
Benedikt Stefansson
VP - IR & Global Communications at Alvotech

Thank you, and welcome to our listeners. Yesterday evening, the company issued a press release announcing our financial results for the first six months of twenty twenty five. A presentation accompanying today's earnings call was also published last night on our investor portal, investors.albotech.com, under News and Events. We will be referring to individual slides during the presentation today. Our press release, presentation and statements that we make on the call today may include forward looking statements.

Benedikt Stefansson
Benedikt Stefansson
VP - IR & Global Communications at Alvotech

Please see our disclaimers on slide number two of the presentation. These statements do not ensure future performance and are subject to risks and uncertainties that are outlined in company filings with the Securities and Exchange Commission. Any risks and uncertainties could cause actual results to differ materially from forward looking statements that are made. Presenting on today's call are Robert Westman, Chairman and Chief Executive Officer of Albotec and Linda Jornstotir, Chief Financial Officer. We also have with us on the call Anil Akay, Chief Commercial Officer and Joel Morales, outgoing CFO.

Benedikt Stefansson
Benedikt Stefansson
VP - IR & Global Communications at Alvotech

Robert will begin today's presentation with a summary of the first half of the year and quarter, including financial and business highlights. Linda will cover the financial performance in more detail. Following that, Robert has some closing statements, and then the team will be happy to take your questions. And with that, I would like to turn the call over to Robert Westman.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

Robert? Thank you, Benedict, and thanks to everyone for joining us here today. I'm very pleased to have with me today our new CFO, Linda Jornstotter, who joined our team in July. Linda has a background in finance and corporate leadership internationally, have worked across different industries such as transportation, banking, food technology, and healthcare both as a CFO and COO and Chairman.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

At the same time, I want to thank Joel Morales for his valuable part in Alwatec's journey as CFO. We are very pleased here today to announce our operating results for the first half of the year and this quarter. These results confirm our continuing momentum as a leading global fully integrated biosimilar company. Alwatec's strong growth momentum in the first half of the year can be attributed to strong reorders, successful product launches, development progress and improved efficiency in manufacturing. Among the highlights from this quarter, we saw good performance in major markets from our two marketed products.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

We signed significant partnership agreements for our early stage pipeline. We increased our revenues in the first half of the year by 30 year on year and we also delivered the fifth consecutive quarter of positive adjusted EBITDA. The cash flow of the quarter from the operating activities reached $77,000,000 which is an improvement of US161 million dollars year on year. Product revenues in the first half of the year grew by over 200% and product revenues in second quarter twenty twenty five grew by 77% year on year. Product margin were 33%, driven by new product launches, growth in revenues from existing markets and increased product volumes.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

Linda will talk more about these financial results later in the call. Let's now switch gears and discuss the performance of our marketed products. Starting with our biosimilar to Humira, which is marketed as Simlanti in America and some other parts of the world and as Hukyndra in Europe. In Europe, our partner continues to gain market share with Hukyndra, which has now entered its fourth year in the market in Europe. We are quite pleased with the solid performance of the biosimilars despite entering a fairly crowded market back in the year 2022.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

In The US, the Humira biosimilar market started opening up last year when our Humira biosimilar Simlanti was launched. As pharmacy benefit managers PPMs are starting to exclude the originator from formulary, we are now seeing an accelerated conversion to Humira biosimilars, which in July had reached over 40% share of the overall U. S. Humira market as per our estimate. This is in line with our expectations that biosimilar conversion could reach 50% in The U.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

S. Humira market by year end. At the same time, I'm very pleased to say that Alvotech has the second largest market share as a biosimilar to Humira in the largest market in the world, The U. S. Market.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

We also continue launching this biosimilar in markets outside North America and Europe, and our partners now are selling biosimilar to Humira in 33 markets globally, and we have gained marketing approvals in 67 markets total. And we are therefore continuing to roll out product into new markets going forward. Our biosimilar to Stellara, AVTO4, is marketed as Selarsty in The US and Osh Provo in Europe. We were the first entrant in Europe, Canada, and Japan last year with very strong results. We launched Viteva in The US market this February.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

Usprovoke continues to outperform our expectations in Europe. Sales volumes are very strong and we remain the biosimilar with the first or second largest market share in all the key markets in Europe. The uptake of Stellara Biosimilar in The US is progressing as we expected. Biosimilar share reached over 20% of overall Stellara market in The US in July, as per our estimate. With our product, marketed under Cellars D brand, Vateva, we are on track with our internal forecast in terms of price and volume.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

As mentioned on our last call, pricing in Stellara market is quite competitive, with some of our competitors offering pricing that we believe are not sustainable in the long run. We are convinced that our strategy by focusing on product margin rather than volume and market share will prove more successful for all of our stakeholders in the long run. In The U. S, although we have not signed any private label, we have signed unbranded product deals with a few leading players through our commercial partner, Teva. We have marketing application and review in major global markets for AVTO3, our proposed biosimilar candidate to Prolia and Nextiva.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

AVTO5, proposed biosimilar to Symphony and Symphony ARIA, and AVT06, proposed biosimilar to Eylea. Finally, our marketing application for AVT23, our proposed biosimilar to SOLAR, is currently under review in The UK. We also plan to file with EMA application for AVT23 in the third quarter of this year. We look forward to providing further information as we near the approval and launch dates for these products. As laid out at the beginning of this year, Alwatec has decided to ramp up its R and D effort significantly, expanding the industry's most valuable R and D pipeline.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

In June, we completed our transaction of the R and D operation of Xbrain in Stockholm, and also we bought the rights to apply a similar candidate referencing Cimzia. We continue to hire into our R and D team, in Sweden and Iceland since then. The result of our enhanced R and D activity can also be seen in the recent partnership deals announced during the quarter. During the quarter, we expanded our partnership with Advanced Pharma, licensing European rights to four biosimilar candidates, referencing Elaris, Kasimpta, Cimzia and one undisclosed biologic. ADVANCE has shown great confidence in Alvotec by signing license deals for biosimilar referencing now more than 10 different biologics.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

We also announced our second partnership deal with Doctor. Eddish, a collaboration to co develop, manufacture, and commercialize a biosimilar candidate to Keytruda. The collaboration will allow us to diversify and mitigate development risk and extend the global reach of biosimilars. Shortly after the end of second quarter, we completed our acquisition of IVS Lee in Switzerland. This acquisition gives us better control of the full value chain and increases our capabilities and flexibilities in assembly and packaging of our devices.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

Before I conclude, I would like to extend a special greeting to our many new Swedish investors as this is the first earnings call held after our official listing of Alwatec on Nasdaq Stockholm. After initial placement of about 7,900,000.0 SDRs on Stockholm market, float on the Stockholm exchange has continued to increase. Shareholders are now able to trade Alwatax shares on three NASDAQ exchanges in Iceland, in U. S, and now in Sweden. The listing on the NASDAQ Stockholm further broadens our shareholder base and increases trading liquidity to the benefit of all investors interested in participating in Alvotec's exciting journey.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

In summary, we are very happy about the results of previous six months and our momentum going into the second half of the year. And with that, I would like to hand the call over to Linda. So, Linda, over to you.

Linda Jónsdóttir
Linda Jónsdóttir
CFO at Alvotech

Thank you, Robert. I'm very excited to join the fantastic team at AlloTech. And even though it has only been a few weeks, I can really feel the energy, the passion, and drive of our people. And I'm happy to report that this is reflected in our numbers as well, so let's move to the key highlights for the financial results for q two and first half of the year. Overall, our performance in the first half of the year was strong, both in terms of revenue growth, margin expansion and continued cash flow robustness.

Linda Jónsdóttir
Linda Jónsdóttir
CFO at Alvotech

Moving to slide nine in the deck, highlighting our adjusted financial results, let me start with the revenues. Revenues continue on a strong momentum and were up 30%, up $3.00 $6,000,000 compared to $236,000,000 in the 2024. Our revenue growth year on year was mainly driven by strong product revenues coming in at two zero five million dollars in the first half of the year compared to $66,000,000 in the same period last year. A key driver for the increase year on year were increased sales of our biosimilar to Humira and continued success of our biosimilar to Stelera in Europe and its launch in The U. S.

Linda Jónsdóttir
Linda Jónsdóttir
CFO at Alvotech

In Q1 this year. Licensing revenues in first half were $101,000,000 compared to very strong first half last year, when licensing revenues were $170,000,000 This difference in licensing revenues was driven by the timing of development progress impacting R and D milestones. Revenue recognition of milestones can be lumpy, and during Q2 last year, we achieved a number of significant development milestones. We do expect a similar dynamic to occur this year towards the latter part of the year. Looking at Q2 specifically, we recognized total revenues of $173,000,000 compared to $199,000,000 in Q2 last year and $133,000,000 in Q1 this year.

Linda Jónsdóttir
Linda Jónsdóttir
CFO at Alvotech

This lift between product revenues and licensing revenues in Q2 this year was 95,000,000 and $78,000,000 After a very strong Q1 marked by the launch of our biosimilar to Stelera in The U. S, the second quarter benefited from increased demand for our biosimilar to HUMIRA across key markets and our Stelera biosimilar in Europe. And to further illustrate the inherent lumpiness I referred to earlier in terms of quarterly phasing, we do expect product revenues as well as milestone revenues to soften in Q3, followed by a much stronger result in Q4. Moving to operational performance and margins. In the first half of the year, the adjusted product margin was 33%, which is in line with our previously stated expectations of a mid-thirty percent range for product margin in the period.

Linda Jónsdóttir
Linda Jónsdóttir
CFO at Alvotech

Adjusted EBITDA in the first half was $54,000,000 compared to $64,000,000 during the same period in the prior year. And adjusted EBITDA in Q2 was $18,000,000 versus $102,000,000 during Q2 last year. This is a function of the lower contribution of licensing revenues as milestone revenues transfer directly to EBITDA. Turning to the next slide, you'll find a summary of our cash and liquidity. During the 2025, we generated $77,000,000 of positive cash flow from operations, which is a net improvement of $161,000,000 compared to the same period last year.

Linda Jónsdóttir
Linda Jónsdóttir
CFO at Alvotech

In Q2, specifically, we generated $59,000,000 of positive cash flow from operations, which is a net improvement of $73,000,000 year on year. In terms of operating cash flow, Q2 twenty twenty five is the strongest quarter in the history of Olvotec and demonstrates the strength of our core business operations, which is reflected in high product revenue collections during the period and is accomplished while we are still building inventory in preparation of new launches. We have also taken a number of important steps in the first half of the year in terms of our capital structure. We closed the period ending June 30 with $1,139,000,000 dollars in debt and $151,000,000 of cash on hand, which was positively impacted by operational performance and proceeds from our Swedish offering and private placement in June. As per the agreement reached with our lenders in late June and on the back of our improved financial performance over the past year, we were able to reduce the rate of interest on our existing senior secured term loan facility to SOFR plus 6% with a maturity date in 2029, which will reduce our cost of capital and lower ALVA tax interest payments in the first twelve months by an estimated $8,200,000 In Q2, we completed the acquisition of the R and D organization of Axsprain in Sweden and by a similar candidate to Cimzia.

Linda Jónsdóttir
Linda Jónsdóttir
CFO at Alvotech

The total purchase price was $28,900,000 paid in cash by assumption of convertible debt and assumption of accounts payable. After the close of the quarter, we also announced the acquisition of Iris Lee in Switzerland. Both acquisitions are very important for our ongoing and future operations. In the appendix to our presentation, you'll find a table with reconciliation of our reported to adjusted results. And finally, over the past few weeks, I have witnessed the strong team at AlloTag and their dedication to deliver with focus on operational excellence and financial performance.

Linda Jónsdóttir
Linda Jónsdóttir
CFO at Alvotech

I'm excited to get to know the company better, both to identify and maximize the opportunities ahead and contributing to a sustainable long term growth of the company for the benefit of all stakeholders. And with that, I would like to hand the call over to Robert for some final remarks. Robert?

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

Thanks, Linda. In closing, the second quarter was another strong quarter for Alvotec. We are expanding existing products into new markets and preparing for future launches. We will maintain focus on accelerating pipeline development going forward. At the same time, we are scaling manufacturing and increasing operational efficiencies.

Benedikt Stefansson
Benedikt Stefansson
VP - IR & Global Communications at Alvotech

Thank you, Robert and Linda, and let's now turn the call back over to the operator for Q and A.

Operator

Thank you, dear participants. Star one one on your telephone keypad and wait for your name to be announced. To withdraw a question, please press 1 and 1 again. Please standby, we'll compile the Q and A queue. This will take a few moments.

Operator

And now we're going to take our first question. And it comes from the line of Christopher Oueder from SEB. Your line is open. Please ask your question.

Christopher Uhde
Senior Pharma & Biotech Equity Analyst at SEB

Hi there. Thanks for taking my questions. So, I guess a few, I'll take them one by one, if that's okay. Halfway through 2025, you're not changing guidance, but the Q2 was clearly at least a lot better than the Street predicted. So, what can you tell us about your confidence in the top line guidance going forward?

Christopher Uhde
Senior Pharma & Biotech Equity Analyst at SEB

And then, I mean, you've previously indicated if memory serves that you have very high six month visibility, so is it fair to say we should not expect a guidance raise in Q3 then? That's my first question. Hi. Can you hear me?

Linda Jónsdóttir
Linda Jónsdóttir
CFO at Alvotech

Hi. Thanks for the question, and it's Linda here. I will at least I will touch on on the guidance. Perhaps just to start by summarizing a bit, like Q2, I mean, we see a lot of strong momentum both in the Q2 numbers and the first half. And of course, like underpinning the strong product revenue growth there, driving solid EBITDA results.

Linda Jónsdóttir
Linda Jónsdóttir
CFO at Alvotech

We also see that licensing revenues are impacted by timing of development milestones and cash flow from operation is strong. So, I would say number of solid staffs taken now in the first half. We've also said in the past that revenue recognition is lumpy with respect to milestone revenues. And if you look into, for example, '24, we had a number of significant development milestones there, and we do expect similar dynamics now this year towards the latter part of the year. And that's why we also commented a bit on the quarterly phasing.

Linda Jónsdóttir
Linda Jónsdóttir
CFO at Alvotech

We do expect product revenues as milestone revenues to be soft in Q3. So we are expecting Q4 to be much stronger. At the same time, we are coming out with new launches, and we are building up inventories in connection to that. But otherwise, I only refer to our earlier guidance that we have stated before.

Christopher Uhde
Senior Pharma & Biotech Equity Analyst at SEB

Okay. Thanks. That's much appreciated. And then is there growth for Cymlandi left from the Qualant channel in The US or should we view that particular channel as maxed out?

Anil Okay
Anil Okay
Chief Commercial Officer at Alvotech

I can take this question, of course. So we do have still a valid contract with Qualant. However, our focus on O2 in The US market is the value rather than the volume. So we do expect this business to be more challenging in the second half of the year, but we had a very good first half of the year volumes going to call and we do expect this business to continue.

Christopher Uhde
Senior Pharma & Biotech Equity Analyst at SEB

Okay, thanks very much. Then on, I guess, AVT03, five, and six, I guess most investors would see FDA inspections as the most likely reason for a delay to ultimate approval if one were to occur. Assuming you agree, should we expect any press releases once FDA has given feedback on the inspection outcomes? Thanks very much. That's all for me for now.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

Yeah, I think, Robert here. Thanks for the question. I mean, as a part of prior approval, if you will, we did have an inspection, and we believe that this is just as it is as an ordinary course of business, if you will. And we, of course, are seeing we have had in the facility both European health authorities, Japanese health authorities, FDA, and this is becoming just a part of our life. And so we had already two FDA inspections last year.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

We, of course, sent out a press release on the first one when facility got approved. The second one late last year went very well, but I don't recall we did send out any press release around that. But, of course, we will keep market open and informed once we get approved on the approval on the products, if you will, going forward.

Christopher Uhde
Senior Pharma & Biotech Equity Analyst at SEB

Okay. Thanks very much.

Operator

Thank you. Now we're going to take our next question. And the next question comes from the line of Ash Verma from UBS. Your line is open. Please ask your question.

Ashwani Verma
Ashwani Verma
Executive Director - SMID Biotech & Biopharma at UBS Group

Hi. Good morning. Thanks for taking my question. Congrats to Linda and Joel. You'll be missed.

Ashwani Verma
Ashwani Verma
Executive Director - SMID Biotech & Biopharma at UBS Group

So maybe just I guess a couple of questions that I wanted to ask me. Just on the guidance, didn't see you guys like reiterating or kind of making any specific comment beyond what you're saying for 3Q. So where you are right now in terms of revenue in the first half, so $3.00 $6,000,000 that is roughly at the 50% market, the low end of the revenue that you had guided before the 600 to 700. So are we to assume that piece is intact? And then on EBITDA 54,000,000 adjusted EBITDA in first half versus your prior guidance was 200 to $2.80.

Ashwani Verma
Ashwani Verma
Executive Director - SMID Biotech & Biopharma at UBS Group

So where are we? Seems like roughly 20%, 25%, I'm sorry, on the EBITDA in the first half. Are those like guidance ranges still intact? I'm trying to understand, is that something that you can expect despite the strong 4Q that you are indicating?

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

Yeah. Robert here. I think the best answer is we are basically in line with what we expected, maybe slightly better first six months. And as Linda mentioned, there is some lumpiness in the quarter. So like last year, we will see the fourth quarter being by far the strongest quarter of the year.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

And for now, we have, as she mentioned already, we are not changing the guidance. So I would say, net net, I mean, basically, what we are seeing in the first six months is in line with what we expected.

Ashwani Verma
Ashwani Verma
Executive Director - SMID Biotech & Biopharma at UBS Group

Got it. Okay. Thanks for that. So, just maybe on I think some of the products that you mentioned the dynamic. So, for Humira, you're exiting 40 percent and expect that you can get to 50% by the end of the year in The US market share.

Ashwani Verma
Ashwani Verma
Executive Director - SMID Biotech & Biopharma at UBS Group

If you can comment on the market share dynamic that you expect to happen in the next year. Then just on Stellar, so where do you expect to get to the market share by the end of the year from the 20% that you have here?

Anil Okay
Anil Okay
Chief Commercial Officer at Alvotech

Sure, maybe let me take it, Ash. So a couple of answers to both products. First of all, let me start with ABTO two in Europe. So in Europe, we have successfully plugged in Bioverao as an additional partner in France. Remember, French market had only 15% biosimilar penetration.

Anil Okay
Anil Okay
Chief Commercial Officer at Alvotech

So we are now driving the biosimilar penetration in France, still a very sizable market for us to grow. So we have the best partner in France to drive that market together with Stauda. So that's giving us additional volumes and better pricing. So in Europe, we continue to see a significant market share increase from last year to this year, 30% growth. So we are having a very steady growth and a very stable volume market share in Europe.

Anil Okay
Anil Okay
Chief Commercial Officer at Alvotech

And we expect to continue to grow in those markets, mostly driven by France, but also other markets are also contributing. So that's the European situation. If we go to US, as you have seen, we had multiple shipments to The US based on the purchase orders we had, both from Qualant and also from Teva. And we continue to have a valid forecast from both companies for the second half of the year. And as their purchase orders come to us, we will continue to deliver.

Anil Okay
Anil Okay
Chief Commercial Officer at Alvotech

And what I can say in The US market, there are actually three companies who can really claim a certain position in the adalimumab market. These are of course us, Sando and Organon. All other seven players are not having any meaningful share. So we are in a, in our opinion, we are in a good position to drive this market further in The US. When it comes to AVT-four, I think we have a very good position and again in both markets, let me start again with Europe, which was the earlier market that we launched.

Anil Okay
Anil Okay
Chief Commercial Officer at Alvotech

So we are still either one or number two in different markets in Europe. We continue to grow in a significant pace. So we are very happy with our performance in Europe for this product and we continue to grow market share as we go through. In The US also, we had a successful launch and we also got already a couple of downstream accounts and independent accounts through Teva. So we are expecting our uptake in line with our assumptions in our 2025 guidance.

Anil Okay
Anil Okay
Chief Commercial Officer at Alvotech

So there is no surprise for us coming from The US market in a VT04 market.

Ashwani Verma
Ashwani Verma
Executive Director - SMID Biotech & Biopharma at UBS Group

Okay, thanks so much.

Anil Okay
Anil Okay
Chief Commercial Officer at Alvotech

Thank you, Ash.

Operator

Thank you. And now we're going to take our next question. Just give us a moment. And the question comes from line of Karl Burns from Northland Capital Markets. Your line is open. Please ask your question.

Carl Byrnes
MD - Senior Research Analyst at Northland Capital Markets

Thanks for the question and congratulations on the results. I'm wondering with respect to the BLAs in The U. S. That you expect approval by year end. Do you have any concerns that any of them might slip into the 2026 or still remain highly confident that you will see all of those approved as well? Thanks.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

Yeah, Robert here. Thanks for the question. I mean, we have set the SUFA dates, and we are targeting those dates. We have not given exact date. I think we gave months.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

So we believe that those are the dates we are still targeting. And, typically, you are not seeing slippage on the best super dates historically, I think.

Carl Byrnes
MD - Senior Research Analyst at Northland Capital Markets

Great. Thanks. And then, you know, going back to sorry to beat a dead horse here with the guidance. If we look at product sales and we look at the midpoint, which is March, you did 02/2005 already, so that implies 01/1970 for the '25. Again, you mentioned the third quarter would be soft and then pick up in the fourth quarter.

Carl Byrnes
MD - Senior Research Analyst at Northland Capital Markets

Does that 170 gap still seem realistic? And then with respect to milestones, same thing, two seventy five is basically the midpoint. You did a bit over 100, 101 and change. So that leaves about 174. I would imagine most of that because the timing of the BLAs is going to fall in the fourth quarter. Are those proper assumptions as well? Thank you.

Róbert Wessman
Róbert Wessman
Founder, Chairman & CEO at Alvotech

Robert, here again. I think overall, I mean, you are seeing a lot of the milestones coming throughout approvals and launches and also shipments coming out of approvals and launches. So I think and you had the we had a similar situation, if you will, second quarter last year, so with very high milestones, if you recall. So that's the basis for our forecast and the basis for why we believe that the fourth quarter will be by far the strongest one of this year.

Carl Byrnes
MD - Senior Research Analyst at Northland Capital Markets

Great. Thanks so much, and congratulations again.

Operator

Thank you. Dear speakers, there are no further questions. I would now like to hand the conference over to Benedictine Stefansson for any closing remarks.

Benedikt Stefansson
Benedikt Stefansson
VP - IR & Global Communications at Alvotech

Well, on behalf of the AVOTECH team here in Iceland and all over the world, we want to thank you all for calling in. Please have a good day and evening wherever you are. Thanks, goodbye.

Operator

This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.

Executives
    • Benedikt Stefansson
      Benedikt Stefansson
      VP - IR & Global Communications
    • Róbert Wessman
      Róbert Wessman
      Founder, Chairman & CEO
    • Linda Jónsdóttir
      Linda Jónsdóttir
      CFO
    • Anil Okay
      Anil Okay
      Chief Commercial Officer
Analysts
    • Christopher Uhde
      Senior Pharma & Biotech Equity Analyst at SEB
    • Ashwani Verma
      Executive Director - SMID Biotech & Biopharma at UBS Group
    • Carl Byrnes
      MD - Senior Research Analyst at Northland Capital Markets
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