Alvotech plans $125M share offering and private placement

Alvotech (NASDAQ: ALVO), a biosimilar medicines developer based in Reykjavik, Iceland, announced a proposed underwritten public offering of ordinary shares, with anticipated gross proceeds of approximately $125 million from the offering and a concurrent private placement combined.

The company said it expects to grant underwriters a 30-day option to purchase up to an additional 15% of the ordinary shares sold in the public offering at the public offering price, less underwriting discounts and commissions.

Concurrent with the public offering, Alvotech expects to enter into subscription agreements with certain investors in the European Economic Area for a private placement of ordinary shares at the public offering price. The consummation of the public offering is not contingent on the completion of the private placement.

The allocation of ordinary shares between the public offering and the concurrent private placement has not yet been determined and will be subject to the pricing of the offerings.

Alvotech said it intends to use net proceeds to fund continued development of its biosimilar pipeline, working capital, and general corporate purposes, which may include intellectual property protection, commercial expenditures, capital expenditures, acquisitions or collaborations, research and development, and repayment or refinancing of debt.

BofA Securities, Jefferies, and Evercore ISI are acting as joint book-running managers for the offering.

The offering is being made pursuant to a registration statement on Form F-3 filed with the U.S. Securities and Exchange Commission on October 20, 2023, and declared effective on October 30, 2023. The offering is subject to market and other conditions, and there is no assurance as to whether or when it may be completed.

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