Icelandic biosimilar developer Alvotech reported second-quarter 2026 revenue of $106 million, a 39% decline from the same period last year and flat sequentially against the first quarter. The result missed Wall Street expectations of $111.5 million by $5.5 million, or 4.9%. First-half revenue totaled $212 million, down 31% from $306 million in the first half of 2025.
Adjusted earnings per share came in at a loss of 5.4 cents, wider than the expected loss of 3.68 cents and representing a 46.7% miss versus consensus. Adjusted EBITDA for the quarter fell 32% year-over-year to $23 million, while first-half adjusted EBITDA declined about 15% to $46 million-$47 million from $54 million a year earlier. Gross margins softened to 51% in the quarter and 54% for the first half, down from 55% in the prior-year period.
Cash on hand stood at $143 million at the end of June, following a $165 million equity financing completed that month. Capital expenditures reached $28 million in the quarter, primarily for facility improvements, while intangible investments for pipeline development totaled $17 million. Full-year R&D spending is expected to approach $200 million, split roughly evenly between capitalized and expensed costs.
Management reaffirmed full-year 2026 guidance, targeting revenue of $650 million-$700 million and adjusted EBITDA of $180 million-$220 million. The company anticipates the fourth quarter to be the strongest of the year, with improving momentum expected in the third quarter as product revenue steps up and milestone payments accelerate.
Regulatory progress included the resubmission of U.S. Biologics License Applications in June after a July inspection of the Reykjavik facility resulted in a Voluntary Action Indicated classification. Five biosimilars now drive product revenue, up from two at the start of the year, with key molecules including adalimumab (AVT02), ustekinumab (AVT04), and EYLEA (AVT06). The company also noted a growing U.S. market share for its Simponi products through partner Advanz Pharma, now exceeding 15%. A Fujifilm partnership is expected to begin product output in the second half of 2027.
Shares were quoted at $3.99 in after-hours trading, roughly 56.8% below the 52-week high of $9.25 and 35.7% above the low of $2.94.
