Potential U.S. Tariffs on Pharmaceuticals Expected to Have Minimal Impact on Alvotech’s Product Revenues in 2025

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[{"type":"text","content":"REYKJAVIK, Iceland, May 07, 2025 (GLOBE NEWSWIRE) -- Alvotech (NASDAQ: ALVO) (the “Company”) a global biotech company specializing in the development and manufacture of biosimilar medicines for patients worldwide, today issued a statement on the anticipated impact of potential tariffs on imported pharmaceuticals to the United States. Alvotech expects that potential U.S. tariffs on imported pharmaceuticals should have minimal impact on the Company’s product revenues in 2025. Alvotech manufactures its biosimilars in Iceland, a country which currently faces the minimum tariff of 10% on goods imported to the U.S. A 10% tariff on pharmaceuticals would raise the cost of biosimilars from Alvotech imported to the U.S. for customers by less than 1% of Alvotech’s expected total product revenues in 2025. Furthermore, according to contracted terms, customers are responsible for all costs of transport and import duties to the U.S., and these costs are therefore not expected to be paid by Alvotech. “With the lingering uncertainty in the market about tariffs, and companies planning accordingly, I feel that it is important to communicate clearly about this issue. We manufacture all our biosimilars in Iceland, a country which imports more goods from the U.S. than it exports to the U.S., and is therefore only subject to the minimum 10% tariff introduced in April. Because a favorable U.S. trade balance is one of the key objectives of the new tariff policy, we have currently no reason to believe that a much higher tariff would be applied to pharmaceuticals from Iceland than on other goods. I expect that policy makers will also take into account that biosimilars offer the most cost-effective means of increasing patient access and lowering the cost of vital biologics for U.S. patients,” said Robert Wessman, chairman and CEO of Alvotech. “The estimated impact of a 10% tariff on our sales to the U.S. in the second half of the year would be less than 1% of our expected product revenues in 2025, and these cost would not be paid by Alvotech. Looking beyond 2025, given anticipated product launches and increased sales, we estimate that the impact would still constitute a low single digit percentage of Alvotech’s anticipated total product revenues.” About AlvotechAlvotech is a biotech company, founded by Robert Wessman, focused solely on the development and ...

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