- Deutsche Bank research initiated biosimilars developer Alvotech (NASDAQ:ALVO) with a hold rating, citing risks related to pending regulatory decisions and competitors.
- Deutsche Bank analyst Emmanuel Papadakis gave ALVO stock a price target of $10, representing a 21.8% upside to ALVO's last close.
- Shares of ALVO were marginally lower at $8.19 in Friday mid-day trading.
- Iceland-based ALVO's lead product candidate is AVT02, a biosimilar to AbbVie's (ABBV) blockbuster arthritis drug Humira.
- "Key upside risks include approval and interchangeability for AVT02 plus progress on other biosimilar pipeline assets," said Papadakis.
- ALVO was listed on the Nasdaq on June 16 following a merger with special purpose acquisition company Oaktree Acquisition Corp. II.
- "Key downside risks include negative developments on (AVT02), the company's relatively brief history and the broader market sentiment for specialty pharma/biosimilars assets plus the evolution of the competitive landscape," Papadakis said.
- Papadakis believes the U.S. biosimilars market has been a mixed story for generic/biosimilar players to date, with early market development largely dominated by "legacy innovative players."
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