Biotechnology company Alvotech (NASDAQ:ALVO) announced on Thursday the closing of its underwritten public offering of 26,066,667 of its ordinary shares at an offering price of USD3.75 per share, which includes 3,400,000 ordinary shares issued pursuant to the exercise in full of the underwriters' option to purchase additional ordinary shares in the offering.

All ordinary shares sold in the offering were offered by Alvotech. Before deducting the underwriting discounts and commissions and offering expenses, aggregate gross proceeds to the company were approximately USD98m.

Concurrent with the offering, Alvotech entered into subscription agreements with certain investors pursuant to which it will issue and sell 17,826,666 ordinary shares to the investors at a price of USD3.75 per ordinary share in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended. Gross proceeds from the concurrent private placement, before deducting any transaction-related expenses, are expected to be approximately USD67m. The concurrent private placement is expected to close on or about 25 June 2026, subject to customary conditions.

The Alvotech board of directors has resolved to issue 43,893,333 ordinary shares to be delivered to investors participating in the offering and the concurrent private placement and following closing of the concurrent private placement the issued share capital of Alvotech will amount to 390,431,480 ordinary shares in total.

Total gross proceeds are expected to be approximately USD165m, before deducting underwriting discounts and commissions and estimated offering expenses.

Alvotech intends to use the net proceeds to fund the continued development of its biosimilar assets, as well as working capital and general corporate purposes, which may include intellectual property protection and enforcement, commercial expenditures, capital expenditures, acquisitions or collaborations, pre-clinical and clinical development of its product candidates, research and development and product development, pre-commercialisation activities, and repayment or refinancing of indebtedness or other corporate borrowings.