Alvotech (ALVO): A Bull Case Theory

We came across a bullish thesis on Alvotech on Ridire Research’s Substack. In this article, we will summarize the bulls’ thesis on ALVO. Alvotech's share was trading at $4.60 as of December 2nd. ALVO’s trailing and forward P/E were 21.04 and 10.02 respectively according to Yahoo Finance.

Alvotech is positioning itself as the “TSMC of biologics”—a fully integrated, globally compliant biosimilar manufacturer built around process control, regulatory trust, and scale efficiency. Unlike discovery-driven biotech peers, Alvotech begins with validated biologics and differentiates through cost, reproducibility, and execution. Its single-site facility in Reykjavik gives it rare end-to-end ownership of the biosimilar value chain—from cell-line development to purification and fill-finish—enabling faster filings, lower costs, and real-time process optimization.

This vertical integration reduces contamination and tech-transfer risks while delivering consistent EMA and FDA compliance for complex biologics like monoclonal antibodies. Alvotech’s regulatory moat is reinforced by Big Pharma-level CMC infrastructure and a clean GMP slate, restoring regulator confidence after resolving earlier FDA observations. Its commercial model compounds this advantage through a network of global partners such as Teva, STADA, Fuji Pharma, and Advanz, each acting as localized distributors embedded within payor systems, providing recurring deal flow and sticky relationships.

The company is extending its scale edge into rare and specialty biosimilars—targeting high-priced but small-population drugs like canakinumab and ofatumumab—where it captures orphan-style margins without novel R&D risk. Core operational moats lie in CMC comparability analytics, proprietary assay systems, and a high-throughput fill-finish line timed to patent expiries, giving Alvotech precision launch timing unmatched by peers.

Mastery across FDA, EMA, and PMDA filings further compounds its advantage. Execution risks include tender compression, reinspection exposure, and partner dependency. Ultimately, Alvotech is an execution-driven biology platform—industrial precision replacing speculative R&D—owning the factory others must rent.

Previously we covered a bullish thesis on Coherus BioSciences, Inc. (CHRS) by Steve Wagner in March 2025, which highlighted its pivot to oncology and Loqtorzi’s growth momentum. The stock has appreciated approximately 10.47% since our coverage as Loqtorzi adoption accelerated. The thesis still stands as pipeline progress supports valuation. Ridire Research shares a similar view but emphasizes manufacturing scalability and regulatory moats through Alvotech’s biosimilar model.

Alvotech is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held ALVO at the end of the second quarter which was 9 in the previous quarter. While we acknowledge the potential of ALVO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.