Iceland-based biosimilar drug developer Alvotech closed a $100m private placement yesterday that included medical equipment provider Baxter Healthcare, featuring financial services firm Shinhan Bank and family office Athos.
Baxter, Shinhan and Athos contributed to the $65m first close of the placement in October 2020, while the additional $35m was provided by a consortium of undisclosed investors.
Alvotech develops and manufactures biosimilars – comparable versions of medicines originally produced by other companies – focusing on treatments addressing severe and chronic health conditions.
The company was founded in 2013 as a sister company of pharmaceutical firm Alvogen, which maintains a minority stake in Alvotech. It has signed partnership deals with leading figures in the biosimilar market.
Robert Wessman, Alvotech’s chairman, said: “We are very pleased to have secured this private placement, as we embark on the exciting phase in our evolution from a developer to becoming a manufacturer and supplier of biosimilar medicines and we look forward to bringing our first products to market.”
Investment firm YAS Holdings acquired a 2.5% stake in Alvotech in November 2019 in return for approximately $45m, after pharmaceutical manufacturer Fuji Pharma had paid about $50m for a 4.2% stake the previous year.
Robert Wessman’s investment vehicle, Aztiq Pharma, is also an Alvotech shareholder, as are private equity firm CVC Capital Partners and Singaporean state-owned investment firm Temasek, through their joint acquisition of Alvogen in 2015.