Icelandic biosimilars developer Alvotech initiated with a hold rating by Deutsche Bank

• 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."

Comments

[MountieWpg]

This analyst is out to lunch.
He fails to understand that you bet on the jockey when investing in these Biosimilar drug companies.
The jockey being the CEO.
Not to mention Oaktree (Howard Marks) is behind the deal
From the start.