0001193125-23-069063 | POS AM | XBRL Viewer

Cover Page	12 Months Ended
Cover Page	Dec. 31, 2022
Document Information [Line Items]
Document Type	POS AM
Amendment Flag	true
Entity Registrant Name	ALVOTECH
Entity Central Index Key	0001898416
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Amendment Description	On July 14, 2022, the registrant filed a Registration Statement on Form F-1 (File No. 333-266136), as amended by Amendment No. 1 filed on July 27, 2022 and Amendment No. 2 on September 13, 2022, and subsequently declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on September 21, 2022 (as amended and supplemented from time to time, the “Registration Statement”). The Registration Statement initially registered (i) the issuance of 10,916,647 ordinary shares, $0.01 par value, issuable upon the exercise of the Warrants, (ii) the resale by the selling securityholders named therein of up to 219,616,200 ordinary shares, $0.01 par value, and (iii) 4,666,667 Private Placement Warrants (as defined below), including any additional securities that may become issuable by reason of share splits, share dividends or other similar transactions. All fees applicable to the registration of these securities were paid at the time of the original filing of the Registration Statement. This Post-Effective Amendment No. 1 to the Registration Statement on Form F-1 is being filed to (i) include information contained in the registrant’s Annual Report on Form 20-F for the fiscal year ended December 31, 2022, filed with the SEC on March 1, 2023, and (ii) update certain other information in the Registration Statement. The information included in this filing amends the Registration Statement and the prospectus contained therein.

Revenue And Other Income

12 Months Ended

Dec. 31, 2022

Disclosure of Revenue and other Operating Income [Abstract]

Revenue and other income

5.	Revenue and other income

Revenue from contracts with customers

Disaggregated revenue

The following table summarizes the Groups’ revenue from contracts with customers, disaggregated by the type of good or service and timing of transfer of control of such goods and services to customers (in thousands):


	2022		2021		2020
Product revenue (point in time revenue recognition)		24,836		—		—
License revenue (point in time revenue recognition)		424		1,453		24,067
Research and development and other service revenue (over time revenue recognition)		57,769		35,319		42,549

		83,029		36,772		66,616

Reassessment of variable consideration

Subsequent changes to the estimate of the transaction price are generally recorded as adjustments to revenue in the period of change. The Group updates variable consideration estimates on a quarterly basis. The quarterly changes in estimates did not result in material adjustments to the Group’s previously reported revenue or trade receivables during the years ended 31 December 2022, 2021, a

d 2020.

Contract assets and liabilities

A reconciliation of the beginning and ending balances of contract assets and contract liabilities is shown in the table below (in thousands):


	Contract Assets			Contract Liabilities
31 December 2020		34,724			53,066
Contract asset additions		21,525			—
Amounts transferred to trade receivables		(36,811	)		—
Customer prepayments		—			34,577
Revenue recognized		—			(13,107	)

31 December 2021		19,438			74,536

Contract asset additions		29,823			—
Amounts transferred to trade receivables		(19,690	)		—
Customer prepayments		—			46,127
Revenue recognized		—			(26,782	)
Foreign currency adjustment		(915	)		51

31 December 2022		28,656			93,932

The net increase in contract assets as of 31 December 2022 is primarily due revenue recognized when the performance obligation has been met which is offset by the transfer of such amounts to trade receivables on the basis that the Group’s right to that consideration is no longer contingent on its performance. The net increase in contract liabilities as of 31 December 2022 is due to customer prepayments in advance of the Group’s performance. As of 31 December 2022, $3.3 million and $25.4 million are recorded as

non-current

contract assets and current contract

assets

, respectively.

Non-current

contract assets will materialize over

the

next 2 to 3 years. As of 31 December 2022, $57.0 million and $36.9 million are recorded as

non-current

contract liabilities and current contract liabilities, respectively.

Non-current

contract liabilities will be recognized as revenue over the next 2 to 5 years as either services are rendered or contractual milestones are achieved, depending on the performance obligation to which the payment relates.

Remaining performance obligations

Due to the long-term nature of the Group’s

out-license

contracts, the Group’s obligations pursuant to such contracts represent partially unsatisfied performance obligations at

year-end.

The revenues under existing

out-license

contracts with original expected durations of more than one year are estimated to be $283.0 million. The Group expects to recognize the majority of this revenue over the next 3 years.

Out-license

agreements

Teva Pharmaceutical Industries Ltd. (Teva)

In August 2020, the Group entered into an exclusive strategic agreement with Teva for the commercialization in the United States of five of the Group’s biosimilar product candidates. The initial pipeline contains biosimilar candidates addressing multiple therapeutic areas. Under this agreement, the Group will be responsible for the development, registration and supply of the biosimilars, while Teva will be exclusively commercializing the products in the United States pursuant to an intellectual property license granted by the Group to Teva.

In connection with the agreement, Teva made an upfront payment of $40.0 million. The Group also received $35.0 million in development milestones and is entitled to receive up to an additional $50.0 million in development milestones, $175.0 million in regulatory milestones and milestones due upon the first commercial sale of the biosimilar product candidates and $200.0

million in contingent payments based upon the achievement of cumulative net sales amounts.

Subject to some limitations, as consideration for supply of product the Group will receive

40%

of the value of Teva’s net sales of the product

On 27 February 2023, the Group and Teva signed an amendment to licence & development agreement. As part of that amendment, the Group agreed to provide future financial consideration to Teva to assist with the cost of launching and marketing the licensed biosimilar products.

STADA Arzneimittel AG (STADA)

In November 2019, the Group entered into an exclusive strategic agreement with STADA for the commercialization of seven biosimilars in all key European markets and selected markets outside Europe. The initial pipeline contains biosimilar candidates aimed at treating autoimmunity, oncology, ophthalmology and inflammatory conditions. Under this agreement, the Group will be responsible for the development, registration and supply of the biosimilars, while STADA will be exclusively commercializing the products in the relevant territories pursuant to an intellectual property license granted by the Group to STADA.

In connection with the agreement, STADA made an upfront payment of $5.9 million. The Group has received $78.6 million in development milestones through the year ended 31 December 2022. The Group is also entitled to receive up to an aggregate of $130.9 million in additional development milestones, $60.1 million in regulatory milestones and milestones due upon the first commercial sale of the biosimilar product candidates and $11.8 million in contingent payments based upon the achievement of cumulative net sales amounts. The Group is also expected to receive a royalty of approximately 40% of the estimated net selling price from STADA’s and its affiliates’ commercialization of the contracted biosimilars.

Salaries And Other Employee Expenses

12 Months Ended

Dec. 31, 2022

Disclosure Of Salaries And Other Employee Expenses [Abstract]

Salaries and other employee expenses

6.	Salaries and other employee expenses

The average number of individuals employed by the Group during the years ended 31 December 2022, 2021, and 2020 was 858, 645, and 488

, respectively. The aggregate salary and other employee expenses incurred by the Group for these employees were as follows (in thousands):


	2022		2021		2020
Salary expense		92,082		67,433		45,904
Defined contribution plan expense (1)		10,052		7,694		5,234
Long-term incentive plan expense		5,481		17,955		18,053
Share-based payments (see Note 22)		10,317		—		—
Other employee expense		11,670		10,274		10,186
Temporary labor		5,838		6,164		3,441

		135,440		109,520		82,818

(1)

Defined contribution plan expense consists of costs incurred by the Group for employees of certain subsidiaries that are required by

local

laws to participate in pension schemes. These pension schemes are not sponsored or administered by the Group. Pursuant to the requirements of the schemes, the Group is required to contribute a certain percentage of its payroll costs to the pension schemes. Such contributions are charged to the consolidated statements of profit or loss and other comprehensive income or loss as they become payable in accordance with the rules of the pension schemes.

Salaries and other employee expense is included within the consolidated statements of profit or loss and other comprehensive income or loss as follows (in thousands):


	2022		2021		2020
Cost of product revenue		42,501		—		—
Research and development expenses		52,962		71,588		49,043
General and administrative expenses		39,977		37,932		33,775

Total salary and other employee expenses		135,440		109,520		82,818

Depreciation, Amortization And Impairment

12 Months Ended

Dec. 31, 2022

Disclosure Of Depreciation Amortization And Imapirment [Abstract]

Depreciation, amortization and impairment

8.	Depreciation, amortization and impairment

Depreciation, amortization and impairment expenses incurred during the years ended 31 December 2022, 2021 and 2020 are as follows (in thousands):


	2022		2021		2020
Depreciation and impairment of property, plant and equipment (see Note 12)		9,807		10,666		10,363
Depreciation of right of use assets (see Note 13)		9,869		8,699		7,188
Amortization and impairment of intangible assets (see Note 15)		3,488		4,916		1,010

		23,164		24,281		18,561

Depreciation, amortization and impairment expense is included within the consolidated statements of profit or loss and other comprehensive income or loss as follows (in thousands):


	2022		2021		2020
Cost of product revenue		10,053		—		—
Research and development expenses		9,757		21,764		16,358
General and administrative expenses		3,354		2,517		2,203

Total depreciation, amortization and impairment expense		23,164		24,281		18,561

Audit Fees

12 Months Ended

Dec. 31, 2022

Disclosure Of Audit Fees [Abstract]

Audit fees

9.	Audit fees


	2022		2021		2020
Financial Statement audit fees		2,615		5,502		382
Other fees, including tax services		676		136		607

Total fees		3,291		5,638		989

Audit fees for 2021 include fees for the audit of the PCAOB uplift of the consolidated financial statements for 2019 and 2020. Other fees for 2022 include review services for the F-4 and other SEC filings.

Long-Term Incentive Plans

12 Months Ended

Dec. 31, 2022

Disclosure Of Longterm incentive plans [Abstract]

Long-term incentive plans

21.	Long-term incentive plans

Share appreciation rights

Prior to 2019, the Group granted SARs to three former employees. During the year ended 31 December 2020 and 2019, the Group granted

SAR

s to one and two current employees, respectively. There were

new granted SARS in the years ended 31 December 2022 and 2021.

Settlement of SARs

In connection with the closing of the Business Combination, the Company reached a settlement agreement for share appreciation rights previously awarded to certain current and former employees. The rights were settled as follows:

•

two former employees will each receive 1,755,291 Ordinary Shares to be issued one year after the Closing Date. In accordance with IFRS 2, the settlements were accounted for as a modification of a share-based payment transaction that changes the awards classification from cash-settled to equity-settled;

•

one former employee will receive a $1.5 million cash payment in July 2022; and

•

one current employee can elect to receive a cash payment of $1.5 million or 150,000 Ordinary Shares to be issued one year

after the Closing Date. The Company recognized the cash settlement option as a liability with a fair value of $0.8 million and the share settlement option as equity with a fair value of $0.7 million.

The settlement agreements resulted in a net $36.8

million decrease in the SARs liability, a $

31.0 million increase in equity equal to the fair value of the Ordinary Shares issued to the two former employees and potentially issued to one current employee, a $1.5 million increase in other current liabilities and income of $4.3 million in general and administrative expense recognized for the difference between the extinguished liabilities and the fair value of consideration paid to the current and former

employees. As of 31 December 2022, the Company recognized $0.7 million as an other current liability related to the remaining SARs liability.

Significant assumptions used in the Finnerty model to determine the fair value of the Ordinary Shares to be issued for the settlement as of 15 June 2022 are as follows:


	15 June 2022
Asset price	$	9.38
Term (years)		1 year
Volatility rate		35.0	%
Dividend yield		0.0	%
Indicated put option value	$	0.75
Discount for lack of marketability		8.0	%

The asset price is based on the public trading price of Ordinary Shares at the time of the settlement. The term is based on when the holder’s will no longer be restricted from trading the Ordinary Shares. The volatility rate is based on historical data from a peer group of public companies with an enterprise value between $500 million and $5 billion. The dividend yield is based on the expected dividends to be paid out by the Company. The discount for lack of marketability reflects the timing of when the shares will be issued and can be traded by the holders.

On 1 December 2022, the Company issued Ordinary Shares to settle the remaining outstanding SARs. The vested portion of the Group’s SARs liability as of the settlement date was $3.8 million. The Ordinary Shares granted for the settlement will be delivered in June 2023. As a result, management recognized a gain of $0.3 million on the extinguishment of the SARs liability resulting from the difference in the carrying value of the liability and fair value of the Ordinary Shares issued.

Historical SARs Accounting

The Group’s SAR liability as of 31 December 2021 totaled $41.4 million. Expense recognized for the Group’s SAR liability for the years ended 31 December 2021 and 2020 totaled $11.3 million and $7.8 million, respectively. The vested portion of the Group’s SAR liability as of 31 December 2021 is $36.6 million.

Significant assumptions used in the Black-Scholes-Merton pricing model as of 31 December 2021 and 2020 are as follows:


	2021			2020
Risk-free interest rate		0.1	%		0.1	%
Volatility rate		42.0	%		42.0	%
Expected dividend yield		0.0	%		0.0	%
Expected life		0.4 – 1.0 years			1.0 – 1.2 years
Share price at valuation	$	1,806		$	1,465
Strike price	$	925 - $1,695		$	904 - $1,296

The risk-free interest rate is the continuously compounded risk-free rate for a

one-year

US government

zero-yield

bond. Expected volatility is based on historical data from a peer group of public companies. The expected life is based on when the Group expects each holder’s award will be fully vested and settled by the Group, which is dependent on management’s expectation of when specified triggering events requiring settlement will occur. The share price at valuation is based on the Group’s equity valuation at the time of various equity-related transactions that occurred during 2021 and 2020. The strike price represents actual and anticipated increases in equity between the SAR agreement date and the anticipated dates of settlement triggering events. The strike price is used to determine the difference between the equity value at the time of the settlement triggering event and the original equity value of the Group.

Employee incentive plan

Movements in the Group’s employee incentive plan liabilities during the years ended 31 December 2022 and 2021 are as follows (in thousands):


	2022			2021
Balance at 1 January		14,935			10,501
Additions		5,075			6,648
Payments		(7,693	)		(2,214	)
Balance at 31 December prior to reclassification		12,317			14,935
Reclassified to other current liabilities		(11,773	)		—

Balance at 31 December		544			14,935

Litigation

12 Months Ended

Dec. 31, 2022

Litigation [Abstract]

Litigation

23.	Litigation

In 2022, prior to the issuance date of these consolidated financial statements, the Group was involved in four litigations (all now dismissed) in the United States adverse to AbbVie arising out of the development of Alvotech’s AVT02 product, and the filing of a biologics license application with the U.S. Food and Drug Administration seeking regulatory approval (the “AbbVie Litigations”).

On 19 March 2021, AbbVie Inc. and AbbVie Biotechnology Ltd. (collectively, “AbbVie”) filed an action against Alvotech hf. in the United States District Court for the Northern District of Illinois alleging trade secret misappropriation under the Defend Trade Secrets Act and under the Illinois Trade Secrets Act. The complaint pleaded, among other things, that Alvotech hired a certain former AbbVie employee in order to acquire and access trade secrets belonging to AbbVie. In October 2021, the Court granted Alvotech’s motion to dismiss the action, and AbbVie later appealed that ruling to U.S. Court of Appeals for the Seventh Circuit.

On 17 December 2021, AbbVie Inc., AbbVie Biotechnology Ltd, and AbbVie Operations Singapore Pte. Ltd. filed a complaint with the U.S. International Trade Commission against Alvotech hf., Alvotech Germany GmbH, Alvotech Swiss AG, Alvotech USA Inc., Teva Pharmaceutical Industries Ltd., Teva Pharmaceuticals USA Inc., and Ivers-Lee AG (Certain Adalimumab, Processes for Manufacturing or Relating to Same, and Products Containing Same, Investigation No. 337-TA-1296). The complaint raised trade secret misappropriation allegations similar to those raised in the trade secret litigation that AbbVie previously filed in the Northern District of Illinois.

On 27 April 2021, AbbVie filed an action against Alvotech hf. in the United States District Court for the Northern District of Illinois alleging infringement of four patents, under the patent laws of the United States. On 28 May 2021, AbbVie filed another action against Alvotech hf. in the United States District Court for the Northern District of Illinois alleging infringement of 58 patents, under the patent laws of the United States, the BPCIA, and the Declaratory Judgment Act, and later added two more patents.

As of 31 December 2022, the AbbVie Litigations were dismissed. On 8 March 2022, Alvotech entered into the AbbVie U.S. Agreement with AbbVie Inc. and AbbVie Biotechnology Ltd with respect to AVT02 for the U.S. market. Pursuant to the settlement component of the AbbVie U.S. Agreement, the parties agreed to stipulate to the dismissal of all claims, counterclaims and potential claims in the four U.S. litigations, with each party to bear its own fees and costs. The parties further agreed to release each other from certain claims and demands. Under the licensing component of the AbbVie U.S. Agreement, AbbVie granted Alvotech a license effective 1 July 2023 to make, import, use, distribute, sell and offer for sale AVT02 in the U.S. and a license to manufacture, import and store a reasonable amount of AVT02 in anticipation of the commercial launch of AVT02 in the U.S. Under the agreement, Alvotech may sublicense certain rights to Teva, as a commercialization partner, and may also sublicense to other parties subject to certain conditions. In return, Alvotech is obligated to pay a royalty to AbbVie in the single digits of the net sales of AVT02 in the U.S. The agreement does not provide for upfront or milestone payments. The obligation of Alvotech to pay

royalties shall terminate on the earlier of (i) 11 February 2025; or (ii) a determination that licensed patents are invalid or unenforceable, at which time the license granted will be deemed fully paid up and irrevocable. Each party has the right to terminate the agreement upon breach of certain terms of the agreement that remains uncured for a certain period of time. Additionally, AbbVie may terminate the agreement if Alvotech takes certain actions concerning the patentability, validity or enforceability of AbbVie’s patents in the U.S. with respect to AVT02.

The Group incurred approximately $8.7 million, $13.5 million and $7.9 million in legal expenses during the years ended 31 December 2022, 2021, and 2020, respectively, in preparation for, and/or in relation to, these litigations. Aside from these matters, the Group is not currently a party to any material litigations or similar matters.

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2022

Disclosure In Entirety Of Supplemental Cash Flow Information [Abstract]

Supplemental cash flow information

28.	Supplemental cash flow information

Supplement cash flow information for the year ended 31 December 2022, 2021 and 2020 is included below (in thousands).


Non-cash investing and financing activities	2022	2021	2020
Acquisition of property, plant and equipment in trade payables	4,131	3,812	—
Acquisition of intangibles in trade payables and other current liabilities	4,075	—	—
Right-of-use assets obtained through new operating leases	9,583	18,871	15,204
Addition of the Facility through Aztiq Convertible Bond	115,005	—	—
Non-cash issuance of Aztiq Convertible Bond	80,000	—	—
Equity issued through conversion of borrowings	32,200	346,043	30,000
Acquisition of other intangible assets through financing agreements	—	461	—

Summary Of Significant Accounting Policies (Policies)	12 Months Ended
Summary Of Significant Accounting Policies (Policies)	Dec. 31, 2022
Disclosure Of Summary Of Significant Accounting Policies [Abstract]
Critical accounting judgments and key sources of estimation uncertainty	2.4 Critical accounting judgments and key sources of estimation uncertainty The preparation of the consolidated financial statements in conformity with IFRS requires Group management to make judgments, estimates and assumptions about the reported amounts of assets, liabilities, income and expenses that are not readily apparent from other sources. The estimates and associated assumptions are based on information available when the consolidated financial statements are prepared, historical experience and other factors that are considered to be relevant. Judgments and assumptions involving key estimates are primarily made in relation to the measurement and recognition of revenue (as described in Note 2.6 and Note 5), the measurement and recognition of extinguishment of financial liabilities (as described in Note 2.18 and Note 20), the valuation of derivative financial liabilities (as described in Note 2.18 and Note 25), the valuation of management share appreciation rights (SARs) (as described in Note 2.18 and Note 21), and the valuation of deferred tax assets (as described in Note 2.14 and Note 10). Apart from those involving estimations, critical accounting judgments include the Group’s evaluation as to whether it controls its joint venture in China (as described in Note 2.3 and 26) and material uncertainties with respect to the Group’s going concern assessment (as described in Note 1.5). Existing circumstances and assumptions may change due to events arising that are beyond the Group’s control. Therefore, actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Cost of product revenue	2.7 Cost of product revenue Cost of product revenue includes the cost of inventory sold, labor costs, manufacturing overhead expenses and reserves for expected scrap, as well as shipping and freight costs and royalty costs related to in-license agreements.
Litigation and other contingencies	2.19 Litigation and other contingencies The Group may, from time to time, become involved in legal proceedings arising out of the normal course of its operations. For instance, as a developer and manufacturer of biosimilars, the Group may be subject to lawsuits alleging patent infringement or other similar claims filed by the reference product sponsor. Similarly, the Group may utilize patent challenge procedures to challenge the validity, enforceability or infringement of the reference product sponsor’s patents. Other parties may also file patent infringement claims against the Group alleging that the Group’s products or manufacturing process techniques infringe their patents. The Group establishes reserves for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. When such conditions are not met for a specific legal matter, no reserve is established. Although management currently believes that resolving claims against the Group, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the liquidity, results of operations, or financial condition of the Group, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. It is possible that an unfavorable outcome of a lawsuit or other contingency could have a material impact on the liquidity, results of operations, or financial condition of the Group. Significant judgment is required in both the determination of probability of loss and the determination as to whether the amount of loss can be reasonably estimated. Accruals are based only on information available at the time of the assessment, due to the uncertain nature of such matters. As additional information becomes available, management reassesses potential liabilities related to pending claims and litigation and may revise its previous estimates, which could materially affect the Group’s results of operations in a given period. The Group maintains liability insurance coverages for various claims and exposures. The Group’s insurance coverage limits its maximum exposure on claims; however, the Group is responsible for any uninsured portion of losses. Management believes that present insurance coverage is sufficient to cover potential exposures.

General information (Tables)

12 Months Ended

Dec. 31, 2022

General information about financial statements [Abstract]

Schedule of fair value of shares issued and non-cash share listing expense

The fair value of shares issued was estimated based on a market price of $9.38 per share as of 15 June 2022.


	Shares		(in 000s)
OACB Shareholders
Class A Shareholders		976,505
Class B Shareholders		5,000,000
OACB Earn Out Shares		1,250,000

Total Alvotech Shares issued to OACB shareholders		7,226,505

Fair value of Shares issued to OACB as of 15 June 2022			$	56,060
Fair value of OACB Earn Out Shares issued to OACB as of 15 June 2022				9,100

Estimated fair market value				65,160

Adjusted net liabilities of OACB as of 15 June 2022				(18,251	)

Difference – being the share listing expense				83,411

Summary Of Significant Accounting Policies (Table)

12 Months Ended

Dec. 31, 2022

Disclosure of summary of significant accounting policies explanatory [Abstract]

Summary of Useful Lives of Amortization

The following useful lives are used in the calculation of amortization:


Software		3-5 years
Customer relationships		7 years

Summary of Useful Lives of Depreciation

The following useful lives are used in the calculation of depreciation:


Facility		40 years
Facility equipment		5-20 years
Computer equipment		3 years
Leasehold improvements		3-15 years
Furniture and fixtures		5 years

Salaries And Other Employee Expenses (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure Of Salaries And Other Employee Expenses [Abstract]

Summary Of Detailed Information About Aggregate Salary And Other Employee Expenses Incurred By The Group

The aggregate salary and other employee expenses incurred by the Group for these employees were as follows (in thousands):


	2022		2021		2020
Salary expense		92,082		67,433		45,904
Defined contribution plan expense (1)		10,052		7,694		5,234
Long-term incentive plan expense		5,481		17,955		18,053
Share-based payments (see Note 22)		10,317		—		—
Other employee expense		11,670		10,274		10,186
Temporary labor		5,838		6,164		3,441

		135,440		109,520		82,818

(1)

Defined contribution plan expense consists of costs incurred by the Group for employees of certain subsidiaries that are required by

local

Summary Of Detailed Information About Salaries And Other Employee Expenses Included In Consolidated Statements Of Profit Or Loss

Salaries and other employee expense is included within the consolidated statements of profit or loss and other comprehensive income or loss as follows (in thousands):


	2022		2021		2020
Cost of product revenue		42,501		—		—
Research and development expenses		52,962		71,588		49,043
General and administrative expenses		39,977		37,932		33,775

Total salary and other employee expenses		135,440		109,520		82,818

Depreciation, Amortization And Impairment (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure Of Depreciation Amortization And Imapirment [Abstract]

Summary Of Detailed Information About Depreciation Amortization And Impairment

Depreciation, amortization and impairment expenses incurred during the years ended 31 December 2022, 2021 and 2020 are as follows (in thousands):


	2022		2021		2020
Depreciation and impairment of property, plant and equipment (see Note 12)		9,807		10,666		10,363
Depreciation of right of use assets (see Note 13)		9,869		8,699		7,188
Amortization and impairment of intangible assets (see Note 15)		3,488		4,916		1,010

		23,164		24,281		18,561

Summary Of Detailed Information About Depreciation Amortization And Impairment Expense Included In Consolidated Statements Profit Or Loss And Other Comprehensive Income Or Loss

Depreciation, amortization and impairment expense is included within the consolidated statements of profit or loss and other comprehensive income or loss as follows (in thousands):


	2022		2021		2020
Cost of product revenue		10,053		—		—
Research and development expenses		9,757		21,764		16,358
General and administrative expenses		3,354		2,517		2,203

Total depreciation, amortization and impairment expense		23,164		24,281		18,561

Audit Fees (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure Of Audit Fees [Abstract]

Summary Of Detailed Information About Audit Fees


	2022		2021		2020
Financial Statement audit fees		2,615		5,502		382
Other fees, including tax services		676		136		607

Total fees		3,291		5,638		989

Income Tax (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure Of Income Tax [Abstract]

Schedule of taxation recognized in the consolidated statements of profit or loss and other comprehensive income or loss

Taxation recognized in the consolidated statements of profit or loss and other comprehensive income or loss during the years ended 31 December 2022, 2021 and 2020 is as follows (in thousands):


Current tax
	2022			2021			2020
Direct taxes - current		1,015			706			248
Direct taxes – prior year		(115	)		491			—

Total current tax		900			1,197			248

Deferred tax
Current		(54,236	)		(48,414	)		(121,974	)
Prior year		15,269			(477	)		—

Total deferred tax		(38,967	)		(48,891	)		(121,974	)

Total income tax benefit		(38,067	)		(47,694	)		(121,726	)

The prior year deferred tax impact of $15.3 million mainly relates to foreign currency impact on losses denominated in Icelandic krona.

Schedule of the reconciling items between the statutory rate and the effective tax rate

The reconciling items between the statutory rate and the effective tax rate are as

follows:


	2022			2021			2020
Tax rate		24.9	%		24.9	%		24.9	%
Effect of tax rate in foreign jurisdictions		(2.4	%)		(8.2	%)		(4.9	%)
Recognition of tax losses		—			—			27.9	%
Permanent differences		(8.9	%)		30.4	%		—
Non-recognition of tax losses		(3.8	%)		(15.0	%)		(6.2	%)
Other items		(2.9	%)		(0.1	%)		—

Effective tax rate		6.9	%		32.0	%		41.7	%

Schedule of the movement in net deferred taxes

The movement in net deferred taxes during the years ended 31 December 2022 and 2021 is as follows (in thousands):


	2022			2021
Balance at 1 January		170,268			121,647
Deferred tax credited to profit or loss		38,919			48,621

Balance at 31 December		209,187			170,268

Deferred tax assets		209,496			170,418
Deferred tax liabilities		(309	)		(150	)

Schedule of deferred tax recognized in the consolidated statements of financial position

The amount of deferred tax recognized in the consolidated statements of financial position as of 31 December 2022 and 2021 is as follows (in thousands):


	2022			2021
Deferred tax assets attributable to temporary differences in respect of tax losses		205,290			158,330
Deferred tax assets attributable to other temporary differences		6,832			12,088
Deferred tax liabilities attributable to other temporary differences		(2,935	)		(150	)

Net deferred tax assets		209,187			170,268

Schedule of expiration of unused tax losses

These tax losses expire as follows (in thousands):


2023-2025			35,751
2026-2028			210,224
Later			836,536

			1,082,511

Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2022

Other Current Assets [Abstract]

Summary of Other Current Assets

The composition of other current assets as of 31 December 2022 and 2021 is as follows (in thousands):


	2022		2021
Value-added tax		6,468		4,725
Prepaid expenses		20,601		9,320
Proceeds receivable from Convertible Bonds (see Note 20)		3,520		—
Derivative asset		851		—
Other short-term receivables		1,509		691

		32,949		14,736

Long-Term Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure Of Longterm incentive plans [Abstract]

Schedule of significant assumptions used in the finnerty model to determine the fair value of the ordinary shares to be issued

Significant assumptions used in the Finnerty model to determine the fair value of the Ordinary Shares to be issued for the settlement as of 15 June 2022 are as follows:


	15 June 2022
Asset price	$	9.38
Term (years)		1 year
Volatility rate		35.0	%
Dividend yield		0.0	%
Indicated put option value	$	0.75
Discount for lack of marketability		8.0	%

Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Other Current Liabilities [Abstract]

Schedule of composition of other current liabilities

The composition of other current liabilities as of 31 December 2022 and 2021 is as follows (in thousands):


	2022		2021
Unpaid salary and salary related expenses		15,620		10,235
Accrued interest		2,249		7,547
Accrued payable to Biosana		—		7,500
Accrued vacation leave		5,025		4,626
Employee incentive plan		12,433		—
Accrued expenses		18,720		12,104

		54,047		42,012

Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure In Entirety Of Supplemental Cash Flow Information [Abstract]

Schedule of Supplemental Cash Flow Information

Supplement cash flow information for the year ended 31 December 2022, 2021 and 2020 is included below (in thousands).


Non-cash investing and financing activities	2022	2021	2020
Acquisition of property, plant and equipment in trade payables	4,131	3,812	—
Acquisition of intangibles in trade payables and other current liabilities	4,075	—	—
Right-of-use assets obtained through new operating leases	9,583	18,871	15,204
Addition of the Facility through Aztiq Convertible Bond	115,005	—	—
Non-cash issuance of Aztiq Convertible Bond	80,000	—	—
Equity issued through conversion of borrowings	32,200	346,043	30,000
Acquisition of other intangible assets through financing agreements	—	461	—

General information - Additional Information (Details) $ / shares in Units, $ in Thousands				12 Months Ended
	Feb. 10, 2023 USD ($) $ / shares	Jan. 25, 2023	Jun. 15, 2022 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021
General Information About Financial Statements [Line Items]
Reorganization, Share listing expense \| $			$ 83,411
Fair value of shares issued, market price per share \| $ / shares			$ 9.38
Expense capitalized \| $				$ 5,600
Maximum percentage of ownership interest held by each shareholder				2.4	2.4
Share price \| $ / shares				$ 9.86
Conversion price		10.00%
Expected conversion date		December 31, 2023, or June 30, 2024
Proceeds from issuance of private placement \| $	$ 137,000
Private Placement [member]
General Information About Financial Statements [Line Items]
Share price \| $ / shares	$ 11.57
Subscription Agreements [member]
General Information About Financial Statements [Line Items]
Common stock, Shares subscribed \| shares			17,493,000
Common stock, Subscription price per share \| $ / shares			$ 10
Common stock, Value, Subscriptions \| $			$ 174,900

General Information - Schedule of fair value of shares issued and non-cash share listing expense (Details) $ in Thousands	Jun. 15, 2022 USD ($) shares
Schedule of fair value of shares issued and noncash share listing expense [line items]
Alvotech Shares issued to OACB shareholders \| shares	7,226,505
Estimated fair market value \| $	$ 65,160
Adjusted net liabilities of OACB as of 15 June 2022 \| $	(18,251)
Difference – being the share listing expense \| $	$ 83,411
Class A common stock [member]
Schedule of fair value of shares issued and noncash share listing expense [line items]
Alvotech Shares issued to OACB shareholders \| shares	976,505
Class B Common Stock [member]
Schedule of fair value of shares issued and noncash share listing expense [line items]
Alvotech Shares issued to OACB shareholders \| shares	5,000,000

Finance Income And Finance Cost - Summary Of Detailed Information About Finance Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Details Of Finance Cost [Abstract]
Consenting fee (see Note 20)	$ 7,430
Loss on remeasurement of bonds (see Note 20)	6,511
Amortization of deferred debt issue costs	$ 23	$ 1,586	$ 3,262

Leases - Summary of Lease Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disclosure Of Detailed Information About Lease Liabilities [Abstract]
Adjustments for indexed leases	$ 10,247	$ 5,358
Derecognition due to acquisition of Alvotech Facility (see Note 12)	(80,075)	0
Foreign currency adjustment	(11,682)	(3,744)
Translation difference	$ 99	$ 58

Leases - Summary Of Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure Of Detailed Information About Lease Cost [Line Items]
Foreign currency difference on lease liability	$ 11,682	$ 3,744	$ 3,248
Loss from extinguishment of lease agreement (see Note 12)	(3,859)	0	(241)
Total amount recognized in profit and loss	$ (8,068)	$ (11,378)	$ (9,662)

Cash And Cash Equivalents - Summary of Restricted Cash (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Restricted Cash [Abstract]
Additions during the year	$ 14,914
Interest income	$ 186

Other Current Assets - Summary of Other Current Assets (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Other Current Assets [Abstract]
Proceeds receivable from Convertible Bonds	$ 3,520
Derivative asset	$ 851

Share Capital - Summary of Movements in Ordinary Shares, Share Capital and Share Premium (Details) - USD ($) $ in Thousands		12 Months Ended
	Jul. 12, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclousre of Detailed Information About Movements in Ordinary Shares, Share Capital and Share Premium [Line Items]
Share issue, Shares			6,222,660	322,077
PIPE Financing, Shares		17,493,000
Elimination of Predecessor Ordinary Shares, Shares		(13,481,799)
Issuance of Ordinary, Shares		186,576,505
Predecessor Earn Out Shares, Shares		38,330,000
OACB Earn Out Shares		1,250,000
SARs Settlement, Shares		3,510,582
Settlement of related party loans with Ordinary Shares, Shares	2,500,000	5,000,000
Share issue			$ 833,440	$ 65,001
PIPE Financing		$ 174,930
Elimination of Predecessor Ordinary Value		135
Issuance of Ordinary Shares		65,035
Predecessor Earn Out Shares		(227,500)
OACB Earn Out Shares		(9,100)
SARs Settlement		30,302
Settlement of related party loans with Ordinary Shares	$ 32,200	$ 32,200

Long-Term Incentive Plans - Summary Of Significant Assumptions Used In The Finnerty Model To Determine The Fair Value Of The Ordinary Shares To Be Issued (Details)	Jun. 15, 2022 USD ($)
Disclosure Of Significant assumptions used in the Finnerty model to determine the fair value of the Ordinary Shares to be issued Explanatory [Line Items]
Asset price	$ 9.38
Indicated put option value	$ 0.75
Discount for lack of marketability	8.00%

Long-Term Incentive Plans - Schedule Of Significant Assumptions Used In The Black-Scholes-Merton Pricing Model (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Disclosure Of Indirect Measurement Of Fair Value Of Goods Or Services Received Share Options Granted During Period Explanatory [Line Items]
Share price at valuation	$ 1,806	$ 1,465
Strike price	$ 1,695	$ 1,296

Litigation - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Litigation [Abstract]
Legal expenses	$ 8.7	$ 13.5	$ 7.9

Related Parties - Schedule of Information About Board of Directors Remuneration (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule of Information About Board of Directors Remuneration [Line Items]
Board fees	$ 927
Pension contribution

Other Current Liabilities - Schedule of Composition of Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Disclosure Of Detailed Information About Other Current Liabilities [Line Items]
Unpaid salary and salary related expenses	$ 15,620	$ 10,235
Accrued interest	2,249	7,547
Accrued payable to Biosana		7,500
Accrued vacation leave	5,025	4,626
Employee incentive plan	$ 12,433

Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Non Cash Investing And Financing Activities [Abstract]
Acquisition of property, plant and equipment in trade payables	$ 4,131	$ 3,812
Acquisition of intangibles in trade payables and other current liabilities	4,075
Right-of-use assets obtained through new operating leases	9,583	18,871	$ 15,204
Addition of the Facility through Aztiq Convertible Bond	115,005
Non-cash issuance of Aztiq Convertible Bond	80,000
Equity issued through conversion of borrowings	$ 32,200	346,043	$ 30,000
Acquisition of other intangible assets through financing agreements		$ 461

Label

Element

Value

Share Capital and Share Premium

alvo_ShareCapitalAndSharePremium

$ 997,824,000

Share Capital and Share Premium

alvo_ShareCapitalAndSharePremium

2,429,000

Share Capital and Share Premium

alvo_ShareCapitalAndSharePremium

1,060,558,000

Share Capital and Share Premium

alvo_ShareCapitalAndSharePremium

1,060,558,000

Share Capital and Share Premium

alvo_ShareCapitalAndSharePremium

$ 1,000,253,000

Disclosure Of Detailed Information About Board Of Directors And Key Managerial Personnel Explanatory

alvo_DisclosureOfDetailedInformationAboutBoardOfDirectorsAndKeyManagerialPersonnelExplanatory

The Board of Directors’ remuneration is shown in the table below.

Board of Directors’ fee for the year and shares at year end ( board fees in thousands and shares in whole amounts).	2022
	Board fees		Pension contribution		Shares at year-end**

Robert Wessman, Chairman of the board		740		—		—
Richard Davi e s, Vice-Chairman		68		—		1,133,131
Ann Merchant, Board Member (from 16.6.2022)		43		—
Árni Harðarson, Board Member (from 16.6.2022)*		—		—		—
Faysal Kalmoua, Board Member*		—		—		—
Linda McGoldrick, Board Member (from 16.6.2022)		38		—		—
Lisa Graver, Board Member (from 16.6.2022)		38		—		—
Tomas Ekman, Board Member*		—		—		—
Hirofumi Imai, Board member (until 16.6.2022)		—		—		—

		927		—		1,133,131

Waived their board compensation (both cash and equity).

Direct share ownership


	2022
Key employees	Salaries and benefits		Pension contribution		Termination benefits		Other long- term benefits
Mark Levick CEO		892		162		1,157		—
Other Executive Team Members (9)		5,400		446		820		5,015

		6,292		608		1,977		5,015


Board of Directors’ fee for the year and shares at year end (board fees in thousands and shares in whole amounts).	2021
	Board fees		Pension contribution		Shares at year-end**
Robert Wessman, Chairman of the board		—		—		—
Richard Davi e s, Vice-Chairman		—		—		893,060
Faysal Kalmoua, Board Member*		—		—		—
Tomas Ekman, Board Member*		—		—		—
Hirofumi Imai, Board member		—		—		—
Tanya Zharov (from 23.8.2021)*		—		—		—

		—		—		893,060

Waived their board compensation (both cash and equity).

Direct share ownership


	2021
Key employees	Salaries and benefits		Pension contribution		Termination benefits		Other long- term benefits
Mark Levick CEO		877		159		—		—
Other Executive Team Members (9)		4,531		333		—		985

		5,408		492		—		985

Adjustments For Increase Decrease In Liabilities To Related Parties

alvo_AdjustmentsForIncreaseDecreaseInLiabilitiesToRelatedParties

$ 56,000

Adjustments For Increase Decrease In Liabilities To Related Parties

alvo_AdjustmentsForIncreaseDecreaseInLiabilitiesToRelatedParties

(453,000)

Adjustments For Increase Decrease In Liabilities To Related Parties

alvo_AdjustmentsForIncreaseDecreaseInLiabilitiesToRelatedParties

1,674,000

Amortization Of Deferred Debt Issue Costs

alvo_AmortizationOfDeferredDebtIssueCosts

23,000

Amortization Of Deferred Debt Issue Costs

alvo_AmortizationOfDeferredDebtIssueCosts

12,754,000

Temporary Labour Expense

alvo_TemporaryLabourExpense

5,838,000

Temporary Labour Expense

alvo_TemporaryLabourExpense

6,164,000

Temporary Labour Expense

alvo_TemporaryLabourExpense

3,441,000

AccretionDerecognition Of Borrowings Discount

alvo_AccretionderecognitionOfBorrowingsDiscount

35,065,000

AccretionDerecognition Of Borrowings Discount

alvo_AccretionderecognitionOfBorrowingsDiscount

5,506,000

Liability Asset Of Defined Benefit Plans Prior to Reclassification

alvo_LiabilityAssetOfDefinedBenefitPlansPriorToReclassification

12,317,000

Liability Asset Of Defined Benefit Plans Prior to Reclassification

alvo_LiabilityAssetOfDefinedBenefitPlansPriorToReclassification

14,935,000

Increase Decrease Through Cash Contribution Of Owners

alvo_IncreaseDecreaseThroughCashContributionOfOwners

Increase Decrease Through Cash Contribution Of Owners

alvo_IncreaseDecreaseThroughCashContributionOfOwners

Aggregate Period For Determining The Share Price

alvo_AggregatePeriodForDeterminingTheSharePrice

5 years

Class Of Warrants Or Rights Outstanding

alvo_ClassOfWarrantsOrRightsOutstanding

10,916,647

Borrowings Redeemption Conversion Price

alvo_BorrowingsRedeemptionConversionPrice

$ 10

Borrowings Redeemption Conversion Price

alvo_BorrowingsRedeemptionConversionPrice

$ 10

Other Income Expense Net

alvo_OtherIncomeExpenseNet

$ (8,297,000)

Other Income Expense Net

alvo_OtherIncomeExpenseNet

2,388,000

Borrowings Conversion Feature Fair Value

alvo_BorrowingsConversionFeatureFairValue

$ 24,900,000

Disclosure of Detailed Information about Restricted Cash and Cash Equivalents Explanatory

alvo_DisclosureOfDetailedInformationAboutRestrictedCashAndCashEquivalentsExplanatory

Movements in restricted cash balances during the years ended 31 December 2022 and 2021 are as follows (in thousands):


	2022		2021
Balance at 1 January		10,087		10,087
Additions during the year		14,914
Interest income		186		—

Balance at 31 December		25,187		10,087

Repayments Of Borrowing, Classified As Financing Activities

alvo_RepaymentsOfBorrowingClassifiedAsFinancingActivities

$ 83,951,000

Repayments Of Borrowing, Classified As Financing Activities

alvo_RepaymentsOfBorrowingClassifiedAsFinancingActivities

$ 2,597,000

Disclousre of Detailed Information About Movements in Ordinary Shares, Share Capital and Share Premium Explanatory

alvo_DisclousreOfDetailedInformationAboutMovementsInOrdinarySharesShareCapitalAndSharePremiumExplanatory

Movements in the Group’s Class A and Class B ordinary shares, share capital and share premium during the years ended 31 December 2022, 2021 and 2020 are as follows (in thousands, except for share amounts):


	Ordinary Shares		Predecessor Ordinary Shares			Share capital			Share premium			Total
Balance at 1 January 2020		—		6,937,062			69			102,359			102,428
Share issue		—		322,077			4			64,997			65,001
Transaction costs arising on share issue		—		—			—			(616	)		(616	)

Balance at 31 December 2020		—		7,259,139			73			166,740			166,813

Share issue		—		6,222,660			62			833,378			833,440

Balance at 31 December 2021.		—		13,481,799			135			1,000,118			1,000,253

Elimination of Predecessor Ordinary Shares (Note 1.1)		—		(13,481,799	)		(135	)		135			—
Issuance of Ordinary Shares (Note 1.1)		186,576,505		—			1,866			63,169			65,035
PIPE Financing (Note 1.1)		17,493,000		—			175			174,755			174,930
Transaction costs arising on share issue		—		—			—			(5,562	)		(5,562	)
Predecessor Earn Out Shares (Note 22)		38,330,000		—			—			(227,500	)		(227,500	)
OACB Earn Out Shares (Note 22)		1,250,000		—			—			(9,100	)		(9,100	)
SARs Settlement (Note 21)		3,510,582		—			35			30,267			30,302
Settlement of related party loans with Ordinary Shares		5,000,000		—			50			32,150			32,200

Balance at 31 December 2022.		252,160,087		—			2,126			1,058,432			1,060,558

Disclosure of Detailed Information About Inventories Explanatory

alvo_DisclosureOfDetailedInformationAboutInventoriesExplanatory

The Group’s inventory balances as of 31 December 2022 and 2021 are as follows (in thousands):


	2022			2021
Raw materials and supplies		41,961			26,590
Work in progress		29,450			13,730
Finished goods		2,121			—
Inventory reserves		(2,062	)		(1,262	)

Balance at 31 December		71,470			39,058

Financial Liabilities Derivatives And Non Derivatives Undiscontinued Cash Flows