You should read the following discussion and analysis of our audited financial condition and results of operations together with our consolidated financial statements appearing elsewhere in this Annual Report on Form 20-F. This Annual Report on Form 20-F contains forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act, including, without limitation, statements regarding our expectations, beliefs, intentions or future strategies that are signified by the words “expect,” “anticipate,” “intend,” “believe,” or similar language. All forward-looking statements included in this Annual Report on Form 20-F are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements. In evaluating our business, you should carefully consider the information provided under “Item 3.D. Risk Factors.” Actual results could differ materially from those projected in the forward-looking statements. The terms “Company,” “Alvotech,” “we,” “our” or “us” as used herein refer to Alvotech and its consolidated subsidiaries unless otherwise stated or indicated by context. All amounts discussed are in U.S. dollars, unless otherwise indicated. Company Overview Alvotech is a highly integrated biopharmaceutical company committed to developing and manufacturing high quality biosimilar medicines for patients globally. Our purpose is to improve the health and quality of life of patients around the world by improving access to proven treatments for various diseases. Since our inception, we have built our company with key characteristics we believe will help us capture the substantial global market opportunity in biosimilars: a leadership team that has brought numerous successful biologics and biosimilars to market around the world; a purpose-built biosimilars R&D and manufacturing platform; top commercial partnerships in global markets; and a diverse, expanding pipeline addressing many of the biggest disease areas and health challenges globally. Alvotech is a company committed to constant innovation: we focus our platform, people and partnerships on finding new ways to drive access to more affordable biologic medicines. Alvotech, which was founded in 2013, is led by specialists in biopharmaceutical product creation from around the world that bring extensive combined knowledge and expertise to its mission. Alvotech started the year 2025 with two approved biosimilars for major markets —AVT02 (adalimumab) and AVT04 (ustekinumab)— and an additional nine product candidates in its pipeline for serious diseases with unmet patient and market need. Product candidates in our pipeline address reference products treating autoimmune, eye, and bone disorders, as well as cancer, with combined estimated peak global sales of originator products of more than $130 billion. During 2025, Alvotech advanced both its launched portfolio and late‑stage pipeline with multiple regulatory milestones and market entries. In the United States, SELARSDI (AVT04, ustekinumab), a biosimilar to Stelara, was launched by Alvotech’s commercialization partner Teva in February 2025, following FDA approvals in 2024 for 87 subcutaneous presentations and an additional intravenous presentation that expanded the label to include Crohn’s disease and ulcerative colitis. For AVT06, Alvotech’s proposed biosimilar to Eylea (aflibercept), the FDA accepted the BLA for review in February 2025; in Europe, the CHMP adopted a positive opinion in June 2025, and the European Commission granted marketing authorization in August 2025 (to be marketed as MYNZEPLI by Advanz), with indications aligned to the reference product across major retinal diseases. In bone disease, Alvotech and its partner Dr. Reddy announced FDA acceptance of the BLA for AVT03 (denosumab, a proposed biosimilar to Prolia/Xgeva) in March 2025; review covers both osteoporosis (Prolia) and oncology (Xgeva) presentations. For AVT05, Alvotech’s proposed biosimilar to Simponi/Simponi Aria (golimumab), the BLA filed with the FDA earlier in 2025 progressed to review. In parallel, AVT05 achieved important non‑U.S. milestones: Japan granted marketing authorization in September 2025, and in Europe the EMA issued a positive CHMP opinion in September 2025, followed by the European Commission granting full marketing authorization across the European Economic Area in November 2025. During the fourth quarter of 2025, the FDA issued three CRLs: AVT05 (golimumab) in October 2025, AVT06 (aflibercept) in November 2025, and AVT03 (denosumab) in December 2025, each citing deficiencies identified during the July 2025 pre‑license inspection of the Reykjavik facility. The Company has already initiated a comprehensive remediation plan to address all identified observations and is actively engaging with the FDA, and therefore believes it is well‑positioned to resubmit the BLAs and progress toward U.S. approval as soon as the facility issues are resolved. Within the immunology pipeline, AVT16 (vedolizumab, a proposed biosimilar to Entyvio) advanced clinical workstreams; a Phase 1 pilot in healthy adults was completed, and in late 2025 Alvotech discontinued the global confirmatory patient study after determining it would not be required for dossier submission (the termination notice specified the decision was not related to safety). In respiratory disease, AVT23 (omalizumab, a proposed biosimilar to Xolair) advanced regulatory filings in Europe: the UK MHRA accepted a marketing application earlier in 2025, and in October 2025, the EMA accepted the Marketing Authorization Application; Advanz holds commercial rights in the EEA, UK, Switzerland, Canada, Australia and New Zealand. Alvotech continued to broaden its commercial footprint and development base through partnerships and targeted acquisitions. During the second quarter of 2025, the Company executed two agreements expanding its partnership with Advanz Pharma to cover four biosimilar candidates—AVT48 (canakinumab), AVT65 (ofatumumab), AVT10 (certolizumab pegol) and one undisclosed program—and announced a collaboration and license agreement with Dr. Reddy's to co‑develop, manufacture and commercialize AVT32, a biosimilar candidate to Keytruda (pembrolizumab). During the fourth quarter of 2025, the Group entered into an exclusive strategic agreement with Alvogen for the 88 commercialization of three biosimilar in United States, namely AVT10 (certolizumab pegol), AVT32 (pembrolizumab), and AVT48 (canakinumab). In parallel, Alvotech completed the acquisition of Xbrane Biopharma’s R&D operations in Stockholm, Sweden, together with rights to a biosimilar candidate to Cimzia (now AVT10), and acquired Ivers‑Lee Group in Switzerland in July 2025 to strengthen downstream packaging and supply‑chain capabilities supporting global launches. As of 31 December 2025, the Group had cash and cash equivalents of $172.4 million and current assets less current liabilities of $269.9 million. During 2025, Alvotech undertook several financing initiatives aimed at reinforcing liquidity, supporting pipeline‑related R&D investment, and optimizing its capital structure ahead of multiple anticipated global product launches. In the first half of the year, Alvotech completed its listing of SDRs on Nasdaq Stockholm, raising approximately SEK 789 million in gross proceeds through an equity offering directed to institutional investors, thereby broadening its shareholder base and increasing access to the Nordic capital markets. In June 2025, the Company amended its senior secured first‑lien term loan facility, reducing the cash interest rate to SOFR + 6.0% per annum and maintaining its maturity in July 2029, lowering the Company’s cash interest burden and improving its debt maturity profile. In December 2025, Alvotech launched an offering of $100 million senior unsecured convertible bonds due 2030, as announced in the Company’s press release dated December 16, 2025. The offering was subsequently placed for $108 million at a 6.875% fixed coupon, with a conversion price of $5.9224 per share. The offering was oversubscribed and was executed to support continued R&D investment, expansion of manufacturing infrastructure, and global product launch execution through 2026. Also in December 2025, the Company entered into an additional $100 million senior secured term loan facility, bearing 12.50% fixed interest and maturing on 31 December 2027, providing incremental liquidity and complementing the Company’s long‑term capital structure. Prior to 2025, Alvotech incurred recurring losses since its inception, including net loss of $231.9 million, and $551.7 million for the years ended 31 December 2024, and 2023, respectively. For the year ended 31 December 2025, the Group reported a net profit of $27.9 million. Alvotech’s Adjusted EBITDA was $137.2 million and $108.3 million, for the years ended 31 December 2025 and 2024, respectively. Alvotech expects to continue to incur a certain level of expenses for the immediate future, as it advances its products through preclinical and clinical development and seeks regulatory approvals, manufactures drug product and drug supply, maintains and expands its intellectual property portfolio, hires additional personnel, and pays for accounting, audit, legal, regulatory and consulting services and costs associated with maintaining compliance with exchange listing rules and the requirements of the SEC, director and officer liability insurance premiums, investor and public relations activities and other expenses associated with operating as a public company. See “Risk Factors — We may need to raise additional funding. This additional funding may cause dilution to our existing shareholders, restrict our operations or cause us to relinquish valuable rights, or may not be available on acceptable terms or at all. Failure to obtain such necessary capital when needed may force us to delay, limit or terminate our product development efforts or other operations". Factors Affecting Alvotech’s Performance The pharmaceutical industry is highly competitive and highly regulated. As a result, Alvotech faces a number of industry-specific factors and challenges, which can significantly impact its results. For a more detailed explanation of Alvotech’s business and its risks see “Item 3.D. Risk Factors.” These factors include: Competition The regions in which Alvotech conducts business and the pharmaceutical industry in general is highly competitive. Alvotech faces significant competition from a wide range of companies in a highly regulated industry, including competition from both biosimilar developers and manufacturers as well as competition from branded pharmaceutical developers and manufacturers. 89 Research and development uncertainty Research and development within the pharmaceutical industry has a high degree of uncertainty, and likewise there is uncertainty with respect to the probability of success of Alvotech’s biosimilar programs and the timing of the requisite preclinical and clinical steps to achieve regulatory approval of its biosimilar product candidates. Reliance on commercial partners Alvotech has partnered with several third parties to commercialize its biosimilar product candidates, once approved by the appropriate regulatory agencies. Alvotech does not currently have the capabilities or the necessary infrastructure to commercialize its products independently. Impact of Geopolitics and Global Economic Conditions The Company is subject to additional risks and uncertainties arising from changes in the macroeconomic environment and geopolitical events, including elevated inflation, tightening credit conditions, and political instability in certain economies and markets. Such instability includes the effects of ongoing geopolitical conflicts—most notably the war in Ukraine and hostilities in the Middle East—as well as public‑health emergencies or pandemics. These factors have contributed to volatility and disruption in global financial markets, including increased interest rates, recessionary pressures, bank failures, supply‑chain constraints, and the imposition or threat of imposition of tariffs, trade protection measures and other retaliatory policies, all of which may adversely affect economic activity and financing markets. If equity and credit markets deteriorate further, any future debt or equity financing may become more challenging to obtain on commercially reasonable terms and could be more dilutive to existing shareholders. The Company cannot predict the extent to which its operations—or those of its collaborators, suppliers, contract manufacturers, vendors, or logistics partners—may be adversely affected by such macroeconomic or geopolitical developments. Inflationary pressures—such as higher input costs, increased wages, rising energy prices, and higher borrowing costs—may also adversely affect the Company’s operations. Although the Company expects inflation to have a general impact in line with broader economic conditions, the timing, severity, and duration of any inflationary period or macroeconomic slowdown remain unpredictable. A significant deterioration in global or regional economic conditions, including further escalation of geopolitical conflicts or supply‑chain disruptions, could have a material adverse effect on the Company’s business, financial condition, results of operations, and growth prospects. Components of Operations Product Revenue During the year ended 31 December 2025, the Company recognized product revenue primarily from sales of AVT02 (adalimumab) in the United States, Europe, Canada and Australia, as well as revenue from the commercial launch of AVT04 (ustekinumab) in the United States, and continued sales in Canada, Japan and multiple European markets. The Company expects product revenue to continue to grow as additional markets are activated by its commercial partners and as newly approved products progress toward launch following completion of regulatory and manufacturing readiness activities. License and Other Revenue Alvotech generates a significant portion of its revenue from upfront and milestone payments pursuant to long-term out-license contracts which provide its partners with an exclusive right to market and sell Alvotech’s biosimilar product candidates in a particular territory once such products are approved for commercialization. These contracts typically include commitments to continue development of the underlying compound and to provide supply of the product to the partner upon commercialization. In the future, revenue may include new out-license contracts and additional milestone payments. Alvotech expects that any revenue it generates will fluctuate from period to period as a result of the timing and amount of license, research and development services, milestone and other payments. Operating Expenses 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. 90 Research and development expenses Research and development expenses consist primarily of costs incurred in connection with Alvotech’s research, development and pre-commercial manufacturing activities prior to commercialization of our products. These costs include: •personnel expenses, including salaries, benefits and other compensation expenses; •costs of funding the execution of studies performed both internally and externally; •costs of purchasing laboratory supplies and non-capital equipment used in designing, developing and manufacturing preclinical study and clinical trial materials; •expenses related to quality control and other advancement development; •consultant fees; •expenses related to regulatory activities, including filing fees paid to regulatory agencies; •facility costs including rent, depreciation and maintenance expenses; •fees for maintaining licenses under third party licensing agreements; •expenses incurred in preparation for commercial launch, such as designing and developing commercial-scale manufacturing capabilities and processes, quality control processes, production asset valuation and other related activities; and •costs related to amortization, depreciation and impairment losses related to software and property, plant and equipment used in research and development activities. Expenditures related to research and development activities are recognized as an expense in the period in which they are incurred. Alvotech did not capitalize any research and development expenses as internally developed intangible assets during the years ended 31 December 2025, 2024, and 2023 as not all the criteria in paragraph 57 of IAS 38 have been met. Research and development activities will continue to be central to Alvotech’s business model and will vary significantly based upon the success of its programs. Alvotech expects to incur significant research and development expenses in the near term, as it continues to advance the development of its biosimilar product candidates. Product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of development, primarily due to the increased size and duration of later-stage clinical studies. The duration, costs and timing of clinical studies of Alvotech’s products in development and any other product candidates will depend on a variety of factors that include, but are not limited to, the following: •the number of trials required for approval; •the per patient trial costs; •the number of patients who participate in the trials; •the number of sites included in the trials; •the countries in which the trials are conducted; •the length of time required to enroll eligible patients; •the dose that patients receive; •the drop-out or discontinuation rates of patients; •the potential additional safety monitoring or other studies requested by regulatory agencies; •the duration of patient follow-up; •the timing and receipt of regulatory approvals; and •the efficacy and safety profile of the product candidates. In addition, the probability of success of Alvotech’s products in development and any other product candidate will depend on numerous factors, including competition, manufacturing capability and commercial viability. As a result of the uncertainties discussed above, the estimated duration and completion costs of any clinical trial that Alvotech conducts is subject to change. Alvotech is also unable to determine with certainty when and to what extent it will generate revenue from the commercialization and sale of products in development or other product candidates, if at all. 91 General and administrative expenses General and administrative expenses primarily consist of personnel-related expenses, including salaries, bonuses and other related compensation expenses, and external consulting service costs for corporate and other administrative and operational functions including finance, human resources, information technology and legal, as well as facility-related costs not otherwise included in research and development expenses. These costs relate to the operation of the business and are not related to research and development initiatives. General and administrative costs are expensed as incurred. Loss on sale of interest in joint venture Alvotech held a 50% ownership interest in a joint venture. Alvotech accounted for its ownership interest in the joint venture using the equity method of accounting. In June 2024, Alvotech sold its share in the joint venture for gross proceeds of $18.0 million. Finance income and finance costs Finance income consists of changes in the fair value of derivative financial liabilities, interest income, and gain on lease termination. Alvotech recognizes interest income from a financial asset when it is probable that the economic benefits will flow to Alvotech, and the amount of income can be measured reliably. Finance costs consist of interest expenses related to lease liabilities and borrowings, changes in the fair value of derivative financial liabilities, accretion of Alvotech’s borrowings and amortization of deferred financing fees. Exchange rate differences The Group uses the U.S. dollar as its reporting currency and conducts business on a global basis in various currencies. As a result, the Group is exposed to foreign currency exchange movements, primarily to Euro, Icelandic Krona, UK pound, Swedish Krona, and Swiss franc. Effects resulting from business combination Effects resulting from business combinations relate to the Company’s acquisition of the Ivers‑Lee Group during 2025, which was accounted for under IFRS 3. The transaction resulted in the recognition of identifiable assets and liabilities at fair value, including property, plant and equipment, and generated a gain recognized in profit or loss. The fair values assigned to acquired assets and liabilities remain provisional, and any subsequent changes resulting from obtaining additional information about facts and circumstances that existed at the acquisition date will be recognized as adjustments to the initial accounting for the acquisition within the measurement period (up to 12 months from the acquisition date), which may also affect the amount of recognized in the statements of profit or loss and other comprehensive income or loss. Gain / Loss on modification and extinguishment of financial liabilities Alvotech recognizes a gain / loss on modification and extinguishment of financial liabilities in connection with the modification and/or extinguishment of outstanding financial liabilities. The gain / loss is calculated as the difference between the carrying amount of the liability extinguished and the fair value of the consideration paid. For non-substantial modifications, the gain / loss is calculated as the difference between the carrying amount and the present value of modified cash flows discounted at the original effective interest rate. Income tax (expense) benefit Income tax (expense) benefit consists of current tax and deferred tax (expense) benefit recorded in the consolidated statement of profit or loss and other comprehensive income or loss. 92 A.Operating Results Comparison of the Years Ended 31 December 2025 and 2024 The following table sets forth Alvotech’s results of operations for the years ended 31 December: USD in thousands 2025 2024 Product and service revenue 276,271 273,472 License and other revenue 310,050 216,210 Other income 2,583 2,296 Cost of product and service revenue (235,558) (185,309) Research and development expenses (184,193) (171,312) General and administrative expenses (90,946) (65,713) Operating profit 78,207 69,644 Loss on sale of interest in joint venture — (2,970) Effects resulting from business combination 7,977 — Finance income 198,492 80,145 Finance costs (149,190) (303,165) Exchange rate differences (16,841) 8,161 Net gain / (loss) on modification and extinguishment of financial liabilities 17,703 (69,378) Non-operating profit / (loss) 58,141 (287,207) Profit / (loss) before taxes 136,348 (217,563) Income tax (expense) benefit (108,429) (14,301) Profit / (loss) for the year 27,919 (231,864) Product revenue Change USD in thousands Year Ended 31 December 2024 to 2025 2025 2024 $ % Product and service revenue 276,271 273,472 2,799 1.0 Product revenue was $276.3 million for the year ended 31 December 2025, compared to $273.5 million for the year ended 31 December 2024. Revenue for the year ended 31 December 2025, primarily reflected sales of AVT02 in the United States, Europe, Canada and Australia, as well as revenue from the commercial launch of AVT04 in the United States, and continued sales in multiple European markets following launches in 2024. In addition, 2025 product revenue included pre‑launch supply shipments of AVT03, AVT05, and AVT06 to partners in markets where these products received regulatory approvals during the year, with shipments made in anticipation of commercial launches following completion of ongoing regulatory and manufacturing readiness activities. License and other revenue Change USD in thousands Year Ended 31 December 2024 to 2025 2025 2024 $ % License and other revenue 310,050 216,210 93,840 43.4 License and other revenue was $310.1 million for the year ended 31 December 2025, compared to $216.2 million for the year ended 31 December 2024. 93 The license and other revenue for the year ended 31 December 2025 was primarily composed of the recognition of $120.5 million research and development milestones associated with regulatory progress across several programs, including EMA marketing authorization submissions and approvals, CTA submissions, and clinical phase completions, most notably for AVT03, AVT05, AVT06, AVT10, AVT16, and AVT23. The year ended 31 December 2025 also benefited from $126.0 million relative to clinical and process‑lock development milestones for pipeline programs such as AVT28, AVT32, AVT41, AVT48, and AVT65, as well as new licensing agreements executed during the year. In addition, commercial‑related milestones contributed meaningfully to revenue totaling $50 million, including product launches and sales‑based milestones for AVT02, AVT03, AVT04, AVT05, and AVT06 across the U.S., Europe, Japan and Canada. Cost of product revenue Change USD in thousands Year Ended 31 December 2024 to 2025 2025 2024 $ % Cost of product and service revenue 235,558 185,309 50,249 27.1 Cost of product revenue was $235.6 million for the year ended 31 December 2025, compared to $185.3 million for the year ended 31 December 2024. This increase is primarily driven by the Company’s sales mix included a higher proportion of early‑stage and pre‑launch supply for AVT03, AVT05, and AVT06, which naturally carry lower margins and higher initial production costs. In addition, the year included non-recurring manufacturing costs which increased overall cost levels without a corresponding increase in revenue. Research and development expenses (R&D expenses) Change Year Ended 31 December 2024 to 2025 USD in thousands 2025 2024 $ % AVT03 development program expenses 4,091 23,755 (19,664) (82.8) AVT04 development program expenses 1,990 3,166 (1,176) (37.1) AVT05 development program expenses 6,073 27,043 (20,970) (77.5) AVT06 development program expenses 8,708 29,465 (20,757) (70.4) AVT29 development program expenses 20,694 3,493 17,201 492.4 AVT16 development program expenses 60,932 31,569 29,363 93.0 Salary and other employee expenses 45,062 37,652 7,410 19.7 Depreciation, amortization and impairment 9,851 8,358 1,493 17.9 Other research and development expenses (1) 26,792 6,811 19,981 293.4 Total research and development expenses 184,193 171,312 12,881 7.5 (1)Other research and development expenses include other project costs, facility costs and other operating expenses recognized as research and development expenses during the period. R&D expenses were $184.2 million for the year ended 31 December 2025, compared to $171.3 million for the year ended 31 December 2024. The increase was primarily driven by a increase of $46.6 million in direct program expenses mainly due to AVT16 and AVT29 programs that are advancing through clinical phase and overall higher other R&D expenses for $28.9 million due to the advancement of other programs and FDA readiness costs during the third quarter of 2025. This was partially offset by a decrease of $62.6 million related to programs which reached commercialization (i.e., AVT04, AVT03, AVT05, and AVT06). 94 General and administrative expenses (G&A expenses) Change USD in thousands Year Ended 31 December 2024 to 2025 2025 2024 $ % General and administrative expenses 90,946 65,713 25,233 38.4 G&A expenses were $90.9 million for the year ended 31 December 2025, compared to $65.7 million for the year ended 31 December 2024. The increase was mainly driven by $21.6 million in higher legal, facility and external service costs, as well as $3.8 million increase in transaction costs mainly related to the Swedish offering. These increases were partly offset by a $3.2  million reduction in share‑based compensation expense. Loss on sale of interest in joint venture Change USD in thousands Year Ended 31 December 2024 to 2025 2025 2024 $ % Loss on sale of interest in joint venture — (2,970) 2,970 100.0 In June 2024, Alvotech sold its share in the joint venture for gross proceeds of $18.0 million (less $1.3 million in transaction costs). The sale resulted in a net loss of $3.0 million during the year ended 31 December 2024. Finance income Change USD in thousands Year Ended 31 December 2024 to 2025 2025 2024 $ % Finance income 198,492 80,145 118,347 147.7 Finance income was $198.5 million for the year ended 31 December 2025, compared to $80.1 million for the year ended 31 December 2024. The increase in finance income was primarily attributable to the change in fair value of derivative liabilities, which was positively impacted by the decrease in the Company's share price during the year. Finance costs Change USD in thousands Year Ended 31 December 2024 to 2025 2025 2024 $ % Finance costs 149,190 303,165 (153,975) (50.8) Finance costs were $149.2 million for the year ended 31 December 2025, compared to $303.2 million for the year ended 31 December 2024. The decrease in finance costs was primarily driven by the change in fair value of derivatives liabilities, which was positively impacted by the decrease in the Company's share price during the year. Exchange rate differences Change USD in thousands Year Ended 31 December 2024 to 2025 2025 2024 $ % Exchange rate differences (16,841) 8,161 (25,002) (306.4) 95 Exchange rate differences resulted in a loss of $16.8 million for the year ended 31 December 2025, compared to a gain of $8.2 million for the year ended 31 December 2024. The change was primarily driven by the movements in the exchange rate of foreign currencies, predominantly Icelandic krona and euros. Effects resulting from business combination Change USD in thousands Year Ended 31 December 2024 to 2025 2025 2024 $ % Effects resulting from business combination 7,977 — 7,977 100.0 In July 2025, the Group completed the acquisition of Ivers‑Lee, a Switzerland‑ and Germany‑based provider of pharmaceutical packaging and clinical supply services, to further strengthen its integrated European supply chain. In accordance with IFRS 3, the identifiable assets and liabilities were recognized at fair value on the acquisition date. The fair value of the net assets acquired exceeded the consideration paid, resulting in a gain of $8.0 million recognized in the statements of profit or loss and other comprehensive income, primarily driven by the fair value uplift on the acquired real estate. Net gain/ (loss) on modification and extinguishment of financial liabilities Change USD in thousands Year Ended 31 December 2024 to 2025 2025 2024 $ % Net gain / (loss) on modification and extinguishment of financial liabilities 17,703 (69,378) 87,081 100.0 Alvotech continued to strengthen its capital structure through proactive refinancing and debt consolidation initiatives. In June 2025, the Company amended its existing Secured Loan Facility, simplifying its structure by consolidating two tranches into one and securing a reduced interest rate of SOFR plus 6.0%. This amendment resulted in a $17.7 million net gain on the modification and extinguishment of financial liabilities, reflecting improved financing terms. In the prior year, Alvotech entered into the new $965.0 million Secured Loan Facility maturing in July 2029, which triggered the settlement of legacy debt obligations, including the conversion of the 2022 Convertible Bonds and Aztiq Convertible Bonds into ordinary shares. A $69.4 million non-cash loss was recorded in connection with this refinancing. Income tax (expense) / benefit Change USD in thousands Year Ended 31 December 2024 to 2025 2025 2024 $ % Income tax expense (108,429) (14,301) (94,128) 658.2 Income tax expense was $108.4 million for the year ended 31 December 2025, compared to $14.3 million for the year ended 31 December 2024. The change is primarily driven by a $130 million deferred tax charge resulting from the derecognition of previously recognized deferred tax assets ("DTAs") related to accumulated tax losses in Iceland, as management determined it is no longer probable that sufficient future taxable profits will be available to utilize these losses. This was partially offset by a 37.0 million deferred tax benefit arising from the strengthening of the Icelandic krona against the U.S. dollar during the year, which increased the U.S. dollar value of Icelandic tax loss carry‑forwards expected to be utilized. Additionally, the tax expense includes a $1.8 million increase in deferred tax expense associated with positive operating results for the period. 96 Comparison of the Years Ended 31 December 2024 and 2023 The following table sets forth Alvotech’s results of operations for the years ended 31 December: USD in thousands 2024 2023 Product and service revenue 273,472 48,699 License and other revenue 216,210 42,735 Other income 2,296 1,948 Cost of product and service revenue (185,309) (160,856) Research and development expenses (171,312) (210,827) General and administrative expenses (65,713) (76,559) Operating profit 69,644 (354,860) Share of net loss of joint venture — (7,153) Impairment loss on investment in joint venture — (21,519) Loss on sale of interest in joint venture (2,970) — Finance income 80,145 4,823 Finance costs (303,165) (267,157) Exchange rate differences 8,161 (5,183) Loss on extinguishment of financial liabilities (69,378) — Non-operating profit / (loss) (287,207) (296,189) Profit / (loss) before taxes (217,563) (651,049) Income tax (expense) benefit (14,301) 99,318 Profit / (loss) for the year (231,864) (551,731) Product revenue Change USD in thousands Year Ended 31 December 2023 to 2024 2024 2023 $ % Product revenue 273,472 48,699 224,773 461.6 Product revenue was $273.5 million for the year ended 31 December 2024, compared to $48.7 million for the year ended 31 December 2023. Revenue for the year ended 31 December 2024, consisted of product revenue from sales of AVT02 in European countries and Canada, launch of AVT02 in the U.S., and the launches of AVT04 in Canada, Japan and European markets. License and other revenue Change USD in thousands Year Ended 31 December 2023 to 2024 2024 2023 $ % License and other revenue 216,210 42,735 173,475 405.9 License and other revenue was $216.2 million for the year ended 31 December 2024, compared to $42.7 million for the year ended 31 December 2023. The license and other revenue of $216.2 million was primarily attributable to the recognition of a $6.6 million research and development milestone due to the approval of AVT04 in Europe, $6.8 million due to the MAA submission with the EMA for AVT03, $12.1 million relative to the MAA submission with the EMA for AVT05, $15.5 million due to the MAA submission with the EMA for AVT06, $16.8 million relative to CTA submission for AVT16, $39.1 million due to the CES completion of AVT03, and $56.4 million due to the CES completion of AVT05. This also included $5.4 million relative to the product launch of AVT04 in Japan, $6.9 million relative to the achievement of sales target of AVT02 in Europe and Canada, $10.0 million relative to the product launch of AVT04 in Europe, $18.8 million relative to the product launch of AVT02 in the U.S., and a net milestone revenue of $20.4 million for the execution of new licensing contracts during the year ended 31 December 2024. 97 Cost of product revenue Change USD in thousands Year Ended 31 December 2023 to 2024 2024 2023 $ % Cost of product revenue 185,309 160,856 24,453 15.2 Cost of product revenue was $185.3 million for the year ended 31 December 2024, compared to $160.9 million for the year ended 31 December 2023. This is the result of sales in the period, including the launches of AVT02 in the U.S., AVT04 in Canada, Japan and European countries, tempered by lower production-related charges and lower costs associated with FDA inspection readiness. Research and development expenses Change Year Ended 31 December 2023 to 2024 USD in thousands 2024 2023 $ % AVT03 development program expenses 23,755 30,714 (6,959) (22.7) AVT04 development program expenses 3,166 7,259 (4,093) (56.4) AVT05 development program expenses 27,043 41,460 (14,417) (34.8) AVT06 development program expenses 29,465 33,109 (3,644) (11.0) AVT16 development program expenses 31,569 11,425 20,144 176.3 Salary and other employee expenses 37,652 45,835 (8,183) (17.9) Depreciation, amortization and impairment 8,358 6,888 1,470 21.3 Other research and development expenses (1) 10,304 34,137 (23,833) (69.8) Total research and development expenses 171,312 210,827 (39,515) (18.7) (1)Other research and development expenses include other project costs, facility costs and other operating expenses recognized as research and development expenses during the period. R&D expenses were $171.3 million for the year ended 31 December 2024, compared to 210,827 for the year ended 31 December 2023. The decrease was primarily driven by a one-time charge of $18.5 million relating to the termination of the co-development agreement with Biosana for AVT23 recognized during the year 2023, a decrease of $6.3 million primarily related to programs which reached commercialization (i.e., AVT02 and AVT04 programs), a decrease of $25.0 million related to programs for which the clinical phase is substantially completed (i.e. AVT03, AVT05, and AVT06), and overall lower headcount and other R&D expenses for $8.2 million, partially offset by a $20.0 million increase in direct program expenses mainly due to AVT16 that is advancing through clinical phase. General and administrative expenses Change USD in thousands Year Ended 31 December 2023 to 2024 2024 2023 $ % General and administrative expense 65,713 76,559 (10,846) (14.2) G&A expenses were $65.7 million for the year ended 31 December 2024, compared to $76.6 million for the year ended 31 December 2023. The decrease in G&A expenses was primarily attributable to $4.5 million in lower 98 third-party services, lower insurance premiums and headcount, coupled with a $6.0 million decrease in expenses for share-based payments. Share of net loss of joint venture and impairment loss on investment in joint venture Change USD in thousands Year Ended 31 December 2023 to 2024 2024 2023 $ % Share of net loss of joint venture — 7,153 (7,153) (100.0) Impairment loss on investment in joint venture — 21,519 (21,519) 100.0 Loss on sale of interest in joint venture 2,970 — 2,970 100.0 In June 2024, Alvotech sold its share in the joint venture for gross proceeds of $18.0 million (less $1.3 million in transaction costs). The sale resulted in a net loss of 3.0 million during the year ended 31 December 2024. Finance income Change USD in thousands Year Ended 31 December 2023 to 2024 2024 2023 $ % Finance income 80,145 4,823 75,322 1,561.7 Finance income was $80.1 million for the year ended 31 December 2024, compared to $4.8 million for the year ended 31 December 2023. Finance income for the year ended 31 December 2024 was primarily attributable to the change in fair value of the Tranche A Conversion Feature of the 2022 Convertible bonds impacted by the bond holders exercising their right to conversion into ordinary shares on the last scheduled conversion date prior to maturity, which was 1 July 2024. Finance income for the year ended 31 December 2023 was mainly attributable to interest recognized from bank accounts. Finance costs Change USD in thousands Year Ended 31 December 2023 to 2024 2024 2023 $ % Finance costs 303,165 267,157 36,008 13.5 Finance costs were $303.2 million for the year ended 31 December 2024, compared to $267.2 million for the year ended 31 December 2023. Finance costs for the year ended 31 December 2024 primarily comprised of a $130.5 million finance costs reflecting the fair value of the Predecessors Earn Out shares, which was negatively impacted by the increase in the Company's share price during the year, and by interest charges on outstanding debts of $147.4 million. Exchange rate differences Change USD in thousands Year Ended 31 December 2023 to 2024 2024 2023 $ % Exchange rate differences 8,161 (5,183) 13,344 (257.5) Exchange rate differences resulted in a gain of 8,161 for the year ended 31 December 2024, compared to a loss of $5.2 million for the year ended 31 December 2023. The change was primarily driven by the movements in the exchange rate of foreign currencies, predominantly Icelandic krona and euros. 99 Loss on extinguishment of financial liabilities Change USD in thousands Year Ended 31 December 2023 to 2024 2024 2023 $ % Loss on extinguishment of financial liabilities 69,378 — 69,378 100.0 On 7 June 2024, the Company entered into a $965.0 million Secured Loan Facility maturing in July 2029 that was funded in July 2024. Upon the closing of the Secured Loan Facility, the Company was required to settle its existing debt obligations. In parallel, the Company announced that all holders of the Tranche A and some holders of the Tranche B of the 2022 Convertible Bonds exercised their right to conversion into ordinary shares at the fixed conversion price of $10.00 per share on the last scheduled conversion date prior to maturity, which is 1 July 2024. Similarly, some holders of the Aztiq Convertible Bonds decided to exercise similar conversion right into ordinary shares at the same conversion price. A loss on extinguishment of financial liabilities of $69.4 million related to the refinancing of existing debt obligations, including the conversion of the 2022 Convertible Bonds and Aztiq Convertible Bonds, was recorded during the year ended 31 December 2024. Income tax benefit Change USD in thousands Year Ended 31 December 2023 to 2024 2024 2023 $ % Income tax benefit (14,301) 99,318 (113,619) (114.4) Income tax expense was $14.3 million for the year ended 31 December 2024, compared to a benefit of $99.3 million for the year ended 31 December 2023. The change is driven by a $94.9 million increase in deferred tax expense corresponding to positive operating results reported for the year ended 31 December 2024 and a $16.8 million increase in foreign currency impact due to the weakening of the Icelandic krona against the U.S. Dollar, decreasing the U.S. Dollar value of Icelandic tax loss carry-forwards that Alvotech expects to utilize against future taxable profits. Reconciliation of non-IFRS financial measure In addition to its operating results, as calculated in accordance with IFRS, Alvotech uses Adjusted EBITDA when monitoring and evaluating operational performance. Adjusted EBITDA is defined as profit or loss for the relevant period, as adjusted for certain items that Alvotech management believes are not indicative of ongoing operating performance. The adjusting items consist of the following: 1.Income tax (expense) / benefit; 2.Total net finance income / costs; 3.Net gain / loss on modification and extinguishment of financial liabilities; 4.Effects resulting from business combination; 5.Depreciation and amortization of property, plant, and equipment, right-of-use assets and intangible assets; 6.Impairment and loss on sale of property, plant, and equipment; 7.Impairment of intangible assets; 8.Charge and recovery related to contract termination; 9.Estimated liability for ongoing contractual matters; 10.Long-term incentive plan expense; 11.Restructuring charge; 12.Share of net loss of joint venture, impairment loss and loss on sale of interest in joint venture; 13.Exchange rate differences; and 100 14.Transaction costs. Alvotech believes that this non-IFRS measure assists its shareholders because it enhances the comparability of results each period, helps to identify trends in operating results and provides additional insight and transparency on how management evaluates the business. Alvotech’s executive management team uses this non-IFRS measure to evaluate financial measures to budget, update forecasts, make operating and strategic decisions, and evaluate performance. This non-IFRS financial measure is not meant to be considered alone or as a substitute for IFRS financial measures and should be read in conjunction with Alvotech’s consolidated financial statements prepared in accordance with IFRS. Additionally, this non-IFRS measure may not be comparable to similarly titled measures used by other companies. The most directly comparable IFRS measure to this non-IFRS measure is loss for the year. The following table reconciles profit/ (loss) for the year to Adjusted EBITDA for the years ended 31 December 2025, 2024, and 2023, respectively: USD in thousands 2025 2024 2023 Profit / (loss) for the period 27,919 (231,864) (551,731) Income tax expense / (benefit) 108,429 14,301 (99,318) Total net finance (income) / costs (49,302) 223,020 262,334 Net (gain) / loss on modification and extinguishment of financial liabilities (17,703) 69,378 Effects resulting from business combination (7,977) — — Depreciation and amortization 37,851 31,301 24,210 Impairment and loss on sale of property, plant and equipment — — 365 Impairment of intangible assets — — 1,779 Charge related to contract termination(1) — — 18,500 Incentive plan expense(2) 7,378 7,626 18,111 Restructuring charge(3) 3,468 Share of net loss of joint venture — — 7,153 Impairment loss on investment in joint venture — — 21,519 Loss on sale of interest in joint venture — 2,970 — Exchange rate differences 16,841 (8,161) 5,183 Recovery related to contract termination(4) (1,084) — Estimated liability for ongoing litigation matters (5) 5,654 — — Transaction costs(6) 4,630 828 918 Adjusted EBITDA 137,188 108,315 (290,977) (1)Represents a charge in relation to the termination of the co-development agreement with Biosana for AVT23 (omalizumab). (2)Represents expense related to employee incentive plans, reported within cost of product revenue, research and development expenses and general and administrative expenses. (3)Represents personnel‑related costs incurred in connection with the restructuring plan that took place during 2025, including severance and related termination benefits, reported within cost of product revenue and general and administrative expenses. (4)Represents a recovery in relation to the termination of the co-development agreement with Biosana for AVT23 (omalizumab). (5) Represents the estimated provision for ongoing legal matters; this was recorded in accordance with IFRS as a subsequent‑event adjustment of revenue and legal expenses accrued to be paid for the year ended 31 December 2025. (6)Represents transaction costs within general and administrative expenses mainly in connection with the listing in Sweden. 101 B.Going Concern, Liquidity and Capital Resources As of 31 December 2025 and 31 December 2024, Alvotech had cash and cash equivalents, excluding restricted cash, of $172.4 million and $51.4 million, respectively. Since its inception, the quarter ended 31 December 2025 was the fourth quarter in which Alvotech generated profit, with a net profit of $27.9 million for the year ended 31 December 2025, compared to a net loss of $231.9 million for the year ended 31 December 2024, and had an accumulated deficit of $2,409.8 million and $2,437.7 million as of 31 December 2025 and 31 December 2024, respectively. The Company expects to continue funding its activities through a combination of utilizing the existing cash, the projected cash generation from milestone collections and product revenues under agreements with its commercial partners, and the current funding arrangements it has access to. During the year ended 31 December 2025 , the Company used $50.2 million of cash from operating activities, used $104.2 million in cash in investing activities, and generated $270.8 million in cash from financing activities. Sources of Liquidity As of 31 December 2025, Alvotech held $172.4 million in cash and cash equivalents, compared to $51.4 million as of 31 December 2024. Current assets exceeded current liabilities by $269.9 million, reflecting increased commercial activity, milestone receipts and proceeds from financing transactions completed during the year. The Company's primary sources of liquidity remain (i) commercial revenue from AVT02 and AVT04, (ii) initial supply revenues from AVT03, AVT05 and AVT06 following regulatory approvals in 2025, (iii) upfront, milestone and royalty payments under out‑license and commercialization arrangements, and (iv) access to debt and equity capital markets. Revenue in 2025 consisted of $276.3 million in product revenue and $310.1 million in license and other revenue. Commercial Activities and Partner‑Driven Liquidity AVT02 has been approved in more than 55 markets and launched in over 25 markets worldwide, including the United States, where it was introduced in the first half of 2024 following FDA approval in February 2024. AVT04 received FDA approval in April 2024 and launched in the United States in February 2025. AVT04 is also approved in Japan, Canada and the EEA, and has been commercially introduced through our partners in each region. These launches contributed materially to the Company's 2025 cash flows. Alvotech maintains 19 regional commercialization partnerships. The revenues under existing out-license contracts with original expected durations of more than one year are estimated to be $351.7 million as of 31 December 2025, and is expected to be recognized primarily over the next five years. Financing Activities During 2024 and 2025, the Company implemented several measures to strengthen and simplify its capital structure: •In July 2024, Alvotech closed a $965.0 million Secured Loan Facility, consisting of a $900.0 million first‑lien term loan and a $65.0 million first‑lien second‑out term loan, maturing in July 2029, which refinanced existing indebtedness and extended our maturity profile. In June 2025, Alvotech’s lenders amended the $965 million facility, combining the first‑lien tranches into a single tranche and reducing the interest rate to SOFR + 6.0%, with all interest payable in cash. •In June 2024, holders of the 2022 Convertible Bonds and certain Aztiq Convertible Bonds exercised conversion rights at $10.00 per share, resulting in the issuance of approximately 22.1 million ordinary shares and eliminating $220.7 million of debt including accrued interest. •In May and June 2025, Alvotech completed equity offerings on Nasdaq Stockholm raising SEK 789 million, enhancing liquidity and broadening its shareholder base. •In December 2025, the Company issued $108 million of senior unsecured convertible bonds due 2030 (6.875% coupon) and entered into a $100 million senior secured term loan facility maturing 31 December 2027. For the foreseeable future, Alvotech’s Board of Directors will maintain a capital structure that supports Alvotech’s strategic objectives through managing the budgeting process, maintaining strong investor relations and managing financial risks. Consequently, management and the Board of Directors believe that Alvotech will have sufficient funds, and access to sufficient funds, to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. However, although management continues to pursue these 102 plans, there is no assurance that Alvotech will be successful in obtaining sufficient funding, if needed in the future, on terms acceptable to Alvotech management to fund continuing operations, if at all. Alvotech’s future capital requirements will depend on many factors, including the following: •the progress, results, and costs of preclinical studies for any programs that Alvotech may develop; •the costs, timing, and outcome of regulatory review of program candidates; •Alvotech’s ability to establish and maintain collaborations, licensing, and other agreements with commercial partners on favorable terms, if at all; •the achievement of milestones or occurrence of other developments that trigger payments under the agreements that Alvotech has entered into or may enter into with third parties or related parties; •the extent to which Alvotech is obligated to reimburse clinical trial costs under collaboration agreements, if any; •the costs of preparing, filing and prosecuting patent applications and maintaining, defending and enforcing Alvotech’s intellectual property rights; •the extent to which Alvotech acquires or invests in businesses, products, technologies, or other joint ventures; •the costs of performing commercial-scale manufacturing in-house and, if needed, securing manufacturing arrangements for commercial production of its program candidates; and •the costs of establishing or contracting for sales and marketing capabilities if Alvotech obtains regulatory approvals to market program candidates. Cash Flows Comparison for the years ended 31 December 2025 and 2024: Change Year Ended 31 December 2024 to 2025 USD in thousands 2025 2024 $ % Cash used in operating activities ($50,197) ($236,843) 186,646 (78.8) Cash used in investing activities (104,215) (18,868) (85,347) 452.3 Cash generated from financing activities 270,832 297,306 (26,474) (8.9) Operating activities Net cash used in operating activities decreased by $186.6 million, or 78.8%, from $236.8 million for the year ended 31 December 2024, to $50.2 million for the year ended 31 December 2025, an improvement of $186.7 million. This was primarily driven by a $20.6 million increase in operating cash flows before considering movements in working capital and $171.0 million decrease in cash outflows from movements in working capital. The $20.6 million increase in operating cash flow before movements in working capital is mostly driven by: •a $259.8 million reduction in net loss; •a $25.0 million change in exchange‑rate differences; and •a $1.6 million decrease in allowance for receivables. This was partially offset by: •a $154.0 million decrease in finance costs, mainly due to the $142.5 million fair‑value positive change on derivative liabilities related to the Predecessors Earn Out shares; •a $118.3 million increase in finance income, largely from derivative fair‑value changes; •$87.1 million higher net gains from modification and extinguishment of financial liabilities; •$19.7 million lower interest expense on debt and borrowings; and •a $94.1 million increase in income‑tax expense. Working‑capital movements contributed an additional $171.0 million improvement in operating cash flows, primarily due to: 103 •a $212.2 million increase in inflows related to trade receivables, reflecting higher collections of product and milestone revenue; and •a $78.4 million decrease in outflows from trade and other payables and other liabilities; These improvements were partially offset by: •a $40.2 million increase in cash outflows related to inventories, reflecting higher raw‑material and WIP build‑up during the period; •a $49.8 million change in contract assets; and •a $37.9 million change in contract liabilities. Contract assets increased as revenue was recognized over time, resulting in $153.9 million of additions, partially offset by $58.9 million transferred to trade receivables. Contract liabilities decreased as performance obligations were satisfied, $42.1 million of new prepayments were received and $107.2 million were recognized as revenue. Interest paid also decreased by $4.0 million, contributing further to improved operating cash flows. Investing activities Net cash used in investing activities was $104.2 million for the year ended 31 December 2025, compared to $18.9 million for the year ended 31 December 2024—an increase of $85.3 million. The increase in outflows primarily resulted from: •a $28.3 million increase in cash outflows for intangible‑asset additions; •a $14.0 million outflow associated with the acquisition of Ivers Lee; and •a $10.8 million increase in capital expenditures. These outflows were impacted by these changes in inflows: •a $26.1 million decrease in inflow from the release of restricted cash following refinancing in 2024; and •$6.1 million decrease of proceeds from the sale of an interest in a joint venture. Financing activities Net cash generated from financing activities totaled $270.8 million for the year ended 31 December 2025, compared to $297.3 million for the year ended 31 December 2024—a decrease of $26.5 million. The decrease was mainly driven by: •a $662.8 million decrease in proceeds from new borrowings; •a $65.9 million reduction in net proceeds from equity offerings; •a $15.0 million net decrease in loans from related parties; •a $4.8 million decrease in proceeds from exercise of warrants; and •a $1.3 million increase in transaction costs on new debt. This was partially offset by: •a $723.7 million reduction in repayments of borrowings; and •a $2.1 million decrease in fees from equity offering. Capital Resources The Company's capital resources consist of equity, long‑term and short‑term borrowings, and commercial arrangements that generate cash flows from upfront payments, milestones and royalties. The Company manages its capital structure with the objective of ensuring adequate liquidity and financial flexibility to support commercial operations, manufacturing scale‑up and development of its biosimilar pipeline. As of 31 December 2025, total borrowings were $1,299.1 million. 104 Debt Capital As of 31 December 2025, Alvotech's debt financing consisted of: •$1,031.6 million under the Secured Loan Facility (maturing July 2029); •$96.7 million under the Senior Term Loan Facility (maturing December 2027); •$68.4 million under the 2025 Convertible Bonds (maturing 2030); and •$102.4 million of other bank loans and equipment financing arrangements. Our borrowings are secured primarily by our intellectual property, manufacturing assets, receivables and inventory. Interest rates across our facilities include both fixed and floating components, exposing us to risks associated with changes in interest rate benchmarks. A 100‑basis‑point movement in floating reference rates would have resulted in a change in profit before tax of approximately $9.9 million as of 31 December 2025. Equity Capital As of 31 December 2025, Alvotech had 312,021,375 ordinary shares outstanding. During 2025, the Company strengthened its equity base raising gross proceeds of SEK 789 million from Nasdaq Stockholm offerings. During 2024, a total of 22.1 million shares were issued upon conversion of 2022 Convertible Bonds and Aztiq Convertible Bonds. Alvotech may raise additional equity capital in the future to support product launches, regulatory submissions, and manufacturing expansion. Commercial Arrangements as a Capital Source Alvotech out‑license and commercialization agreements supplement our capital resources by providing: •upfront payments, •development and regulatory milestones, •sales‑based milestones, and •royalties (typically 35–45% of net sales or minimum floor prices). These arrangements constitute a recurring and diversified source of capital to support ongoing operations. Capital Expenditures Capital expenditures were $64.5 million in 2025, primarily related to investment in manufacturing facilities, equipment and technology infrastructure. The Company expects continued capital investment to support anticipated growth in production volumes and regulatory compliance requirements. Capital Management Alvotech monitors its capital position continuously, taking into account debt maturities, interest obligations, operating expenditures and expected revenue. There were no changes to its capital management policies during 2024 or 2025. Its objective remains to maintain a robust capital base that supports operations and strategic priorities. Material Cash Requirements for Known Contractual Obligations and Commitments The following is a description of commitments for known and reasonably likely cash requirements as of 31 December 2025. Borrowings Alvotech’s debt consists of interest-bearing borrowings from financial institutions. The amount of the outstanding borrowings as of 31 December 2025, was $1,299.1 million. The timing of future payments on the outstanding borrowing amounts, by year, as well as additional information regarding the Group’s borrowings and rights conveyed to the lenders, can be found in Note 21 of the audited consolidated financial statements, included elsewhere in this Form 20-F. Senior Term Loan Facility On 31 December 2025, we entered into a $100 million Senior Term Loan Facility maturing on 31 December 2027. The loan bears a 12.50% fixed cash interest rate, payable monthly, and is repayable in a single bullet payment at maturity. 105 The facility contains customary negative covenants, mandatory prepayment requirements (including excess‑cash‑flow, asset‑sale and insurance sweeps), a make‑whole premium, and prepayment penalties. As of 31 December 2025, $96.7 million was outstanding under the facility. 2025 Convertible Bonds On 22 December 2025, we issued $108 million of 2025 Convertible Bonds. The bonds were issued at par and bear interest at 6.875%, payable semi‑annually. Bondholders may convert their bonds into SDRs at an initial Conversion Price of $5.9224, subject to customary anti‑dilution protections and a one‑time reset if we complete qualifying equity raises of at least $50 million within 24 months of issuance. The bonds include change‑of‑control, free‑float, and delisting investor puts, and issuer tax and clean‑up calls, on customary terms. As of 31 December 2025, $68.4 million was outstanding. Senior Secured First Lien Term Loan Facility The Company entered into a $965.0 million Secured Loan Facility in June 2024, which closed on 10 July 2024. Proceeds were used to refinance existing indebtedness, reduce cost of capital and extend maturity profile. The facility originally consisted of a $900.0 million first‑lien term loan at SOFR plus 6.5%, and a $65.0 million first‑lien, second‑out term loan at SOFR plus 10.5%, each maturing in July 2029. On 26 June 2025, the lenders agreed to amend and restate the Secured Loan Facility. Under this amendment: •the first‑out and second‑out tranches were combined into a single tranche; and •the interest rate was reduced to SOFR plus 6.0%; •all interest became payable in cash, reflecting improved operating performance and simplifying the capital structure. As of 31 December 2025, the carrying amount of the Secured Loan Facility was $1,031.6 million. Interest and principal are due in accordance with the amended terms described above. Conversion of the 2022 Convertible Bonds and the Aztiq Convertible Bonds On 26 June 2024, all Tranche A and certain Tranche B holders of the 2022 Convertible Bonds, and certain holders of Aztiq Convertible Bonds, exercised their conversion rights at $10.00 per share. Approximately 22.1 million ordinary shares were issued on 1 July 2024, extinguishing $220.7 million in aggregate principal and accrued interest. Bondholders who did not convert were repaid in July 2024 using proceeds from the Secured Loan Facility. The Company recorded a $58.3 million loss on extinguishment related to these conversions during 2024. Refinancing of existing debt obligations Concurrent with the July 2024 refinancing, the Company extinguished the Senior Bonds, the Alvogen Facility, and certain other outstanding borrowings. A $10.7 million loss on extinguishment was recorded during 2024. These settlements eliminated significant near‑term maturity exposure. Facility loans As of 31 December 2025, the carrying amount of the facility loans was $42.5 million. These include monthly annuity‑style repayments and bear interest at SOFR + 4.05%, with final maturity in February 2030. Other borrowings Alvotech maintains several additional financing arrangements to support equipment purchases: •Credit Facility – Landsbankinn hf. (February 2022) The facility was amended in July 2024, with borrowing capacity up to $15.4 million and variable interest of SOFR plus 4.95%. The facility expires in December 2026. The outstanding balance as of 31 December 2025 was $10.5 million. 106 •Equipment Loan – Landsbankinn hf. (February 2022) Original principal amounted to $3.2 million and included monthly annuity payment, variable interest SOFR plus 4.25% and final maturity February 2030. The outstanding balance as of 31 December 2025 was $1.8 million. •Equipment Loan – Landsbankinn hf. (August 2022) The original principal amounted to $1.8 million and included monthly annuity payments, variable interest SOFR plus 4.25%, and final maturity February 2030. The outstanding balance as of 31 December 2025 was $1.1 million. •Equipment Loan – Landsbankinn hf. (August 2023) The original principal amounted to $11.5 million and included monthly annuity payments, variable interest SOFR plus 4.25% and final maturity July 2030. The outstanding balance as of 31 December 2025 was $8.3 million. •Equipment Loan – Landsbankinn hf. (October  2025) On 1 October 2025, the Company entered into a loan agreement for $18.4 million to finance equipment purchases. The key terms were as follows: •interest SOFR plus 4.25%, •monthly annuity payments, •final maturity October 2032. The outstanding balance as of 31 December 2025 was $18.1 million. •Equipment Loan – Credit Suisse & UBS Switzerland AG (December  2025) On 11 December 2025, the Company entered into a loan agreement for CHF 4.6 million to finance equipment purchases. The key terms were as follows: •fixed interest 1.75%, •monthly annuity payments, •final maturity December 2030. The outstanding balance as of 31 December 2025 was $1.6 million. •Borrowings assumed in the acquisition of Ivers Lee (July  2025) As part of the Ivers Lee acquisition, Alvotech assumed a shareholder loan and mortgage loans, all recognized at fair value on acquisition. These obligations bear interest between 1.9% and 3.15%, mature between 2028 and 2030, and are secured by real estate. The outstanding balance on the shareholder loan and mortgage loans was $4.2 million and $8.5 million, respectively. Leases Alvotech’s future undiscounted payments pursuant to lease agreements totaled $213.0 million as of 31 December 2025. The timing of these future payments can be found in Note 13 of the audited consolidated financial statements included elsewhere in this Form 20-F. Purchase obligations For the years ended 31 December 2025, 2024, and 2023, Alvotech did not have any purchase obligations. While Alvotech does not have legally enforceable commitments with respect to capital expenditures, Alvotech expects to continue to make substantial investments in preparation for commercial launch of its biosimilar product candidates. C.Research and Development, Patents and Licenses, etc. Full details of our research and development activities and expenditures are given in the “Item 4.B. Information on the Company—Business Overview” and “Item 5 Operating and Financial Review and Prospects” sections of this Annual Report on Form 20-F above. D.Trend Information Other than as described in the Annual Report on Form 20-F, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material adverse effect on our revenue, income from continuing 107 operations, profitability, liquidity or capital resources, or that would cause our reported financial information not necessarily to be indicative of future operation results or financial condition. E. Critical Accounting Estimates For a discussion of our critical accounting estimates, see Note 2.4 to our consolidated financial statements included in Item 18 of this Annual Report.