After building out its manufacturing network, Iceland-based biosimilar developer has raised $300 million to support biosimilar R&D through a private bond offering.
“A unit of Morgan Stanley from London was the lead investor acquiring approximately 75% of the total,” Alvotech pokesperson Halldor Kristmannsson told BioProcess Insider. “They in turn syndicated the majority of this to a small number of institutional investors.”
While Kristmannsson could not disclose the actual names of those investors, he said the remaining bonds were purchased by a combination of Asian investors introduced to Alvotech by a large Asian bank, and also to two US based investors that have participated in previous transactions with Alvotech and sister firm Alvogen.
Icelandic firm Alvotech built a biomanufacturing plant in Reykjavik. Image: iStock/naruedom
“Alvotech will use the funds for ongoing product development including clinical trials, as well as refinancing of existing debt.”
Alvotech’s pipeline consists of six undisclosed monoclonal antibody biosimilars. Its lead product is in Phase III clinical trials and according to clinicaltrials.gov the firm has recently completed recruitment for Phase I clinical trials for a version of AbbVie’s Humira (adalimumab).
Manufacturing
The financing follows a major period of activity for Alvotech.
In September, the firm received manufacturing licensure from the Icelandic Medicines Agency for a 13,000m² production facility in Reykjavik, Iceland. The plant was commissioned in 2013 as part of a $250 million (€220 million) investment into Alvotech’s biosimilar program.
Therefore, the latest funding will not be used to build or add manufacturing capacity, Kristmannsson confirmed. “Our capacity in the Iceland facility is sufficient to supply our forecasted worldwide demand for our current portfolio for many years into the future. “
While manufacturing for most markets will be done at the facility in Iceland, the firm recently entered into a joint venture with Changchun High & New Technology (CCHN)to build a similar plant in Changchun, Jilin to service the China market. The plant will be funded through an investment of around $100 million from CCHN.
And in December, Japanese firm Fuji pharma acquired a 4.2% stake in the firm for around $50 million, weeks after commencing a commercialization partnership with the firm.