ALVOTECH Reports 88.9% Decrease in Revenue for Quarter Ending June 30 2023
September 3, 2023
🌥️Earnings Overview
ALVOTECH ($NASDAQ:ALVO) released their quarterly earnings results for the period ending June 30 2023 on August 31 2023, which revealed total revenue of USD 4.4 million, a drop of 88.9% from the same quarter in the previous year. Net income for this quarter was reported at USD 189.3 million, a considerable improvement from the -107.5 million reported the year before.
Analysis
GoodWhale recently conducted an analysis of ALVOTECH‘s wellbeing, which revealed that ALVOTECH is strong in growth, but weak in assets, dividends, and profitability. The Star Chart shows that ALVOTECH has a low health score of 2/10, indicating that it is less likely to be able to pay off debt and fund future operations. Additionally, ALVOTECH is classified as a ‘Rhino’, meaning that it has achieved moderate revenue or earnings growth. This analysis reveals that ALVOTECH may be an appealing investment option for investors who value companies with moderate growth. They may also be interested in the fact that ALVOTECH has a low health score, as this could present opportunities for increased returns if the company is able to turn its financial situation around. Investors with a more risk-averse profile, however, may find ALVOTECH too risky, and may prefer to invest in a different company. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Alvotech. More…
| Total Revenues | Net Income | Net Margin |
| 63.17 | -415.96 | -591.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Alvotech. More…
| Operations | Investing | Financing |
| -299.24 | -47.26 | 275.83 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Alvotech. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 910.66 | 1.39k | -1.8 |
Key Ratios Snapshot
Some of the financial key ratios for Alvotech are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 37.5% | – | -617.1% |
| FCF Margin | ROE | ROA |
| -548.8% | 43.0% | -26.8% |
Peers
The competition in the biosimilar industry is fierce, with Alvotech facing off against Applied Biosciences Corp, Phoenix Life Sciences International Ltd, and TherapeuticsMD Inc. All these companies are striving to create and provide safe, effective, and cost-efficient treatments to patients around the world. The race to develop the best product and bring it to market first is on, with each company pushing the boundaries of science to develop the most innovative solutions.
– Applied Biosciences Corp ($OTCPK:APPB)
Applied Biosciences Corp is an innovative, advanced biotechnology company that develops and markets products for research, clinical, and commercial applications. With a market cap of 70.5k as of 2023, the company has established itself as a major player in the biotechnology industry. The Return on Equity of -251.18% indicates that the company is failing to turn its investments into profits. This could be due to the recent technological disruptions, or the high competition in the industry.
– Phoenix Life Sciences International Ltd ($OTCPK:PLSI)
Phoenix Life Sciences International Ltd is a biopharmaceutical company based in the United States, focused on developing and commercializing innovative therapies for diseases with unmet needs. The company has a market capitalization of 365.91k as of 2023. Market capitalization is the total market value of a company’s outstanding shares and is calculated by multiplying the current share price by the number of shares outstanding. The company also has a Return on Equity (ROE) of -23.05%. Return on Equity is a measure of profitability that calculates how much profit a company generates with the money shareholders have invested. A negative ROE can indicate that the company is having difficulty managing its finances.
– TherapeuticsMD Inc ($NASDAQ:TXMD)
TherapeuticsMD Inc is a leading women’s health biopharmaceutical company that develops and commercializes hormone therapy pharmaceutical products. As of 2023, the company has a market cap of 43M, which indicates that the company is not yet at its peak and has potential for future growth. While the market cap is relatively small compared to other companies in the sector, TherapeuticsMD Inc’s Return on Equity of -101.53% is a sign of financial distress and cause for concern. The company is investing heavily in research and development of new technologies, but its current ROE suggests that it may lack the necessary funds to finance this research.
Summary
Investing in ALVOTECH appears to be a risky proposition in the short-term. The company reported total revenue of USD 4.4 million for the quarter ending June 30 2023, a decrease of 88.9% from the same quarter last year. Despite this, net income reported for this quarter was USD 189.3 million, an increase from the -107.5 million reported last year. This suggests that ALVOTECH may be able to weather the current economic climate, and may even be a good investment opportunity in the long-term.
However, investors should keep close watch on future earnings results to determine the company’s true financial health.
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