Alvotech SA: Risk Reward Update

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Alvotech SA: Risk Reward Update

UpdateM

RiskRisk RewardReward– Alvotech- AlvotechSA (ALVO.O) SA (ALVO.O)

Biosimilar pure-play

PRICE TARGET US$9.00 OVERWEIGHT THESIS

We value Alvotech through a DCF methodology with explicit forecasts to 2035, a WACC of ▪Alvotech is a pure-play biosimilar company

8.0% and a terminal growth rate of 0% assuming that Alvotech manages to maintain flat with a portfolio of products including a

sales in the long term by renewing the biosimilar portfolio. biosimilar of Humira and a biosimilar of

Stelara. US$6.50 ▪Alvotech is focused on manufacturing andConsensus Price Target Distribution US$4.00 US$9.50 development, relying on a network of MS PT

commercial partners to market its portfolioSource: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates

across the world and generating revenues

through milestones and royalties, which

would lead to elevated profit margin if the

RISK REWARD CHART portfolio is commercially successful.

▪Alvotech has a strong manufacturing and

development platform and an experienced

USD management team.

US$20.00US$20.00(+458.66%)US$20.00(+458.66%)(+458.66%) ▪We are Overweight as Alvotech has

20 established strong foundations from which

we expect sustainable and profitable

growth.

Consensus Rating Distribution

US$9.00US$9.00(+151.40%)US$9.00(+151.40%)(+151.40%) 60% Overweight

20% Equal-weight

5 20% Underweight

US$3.58US$3.58US$3.58 MS Rating

US$3.00US$3.00(-16.20%)US$3.00(-16.20%)(-16.20%) Source: Refinitiv, Morgan Stanley Research

JUL '25 JAN '26 JUL '26 JUL '27

Key: Historical Stock Performance Current Stock Price Price Target Risk Reward Themes

Pricing Power: NegativeSource: Refinitiv, Morgan Stanley Research

Secular Growth: Positive

View descriptions of Risk Rewards Themes here