Shares of Alvotech (ALVO) soared 5.02% in pre-market trading on Wednesday following the company's announcement that potential U.S. tariffs on pharmaceuticals are expected to have minimal impact on its product revenues in 2025.

Alvotech, which manufactures its biosimilars in Iceland, currently faces a minimum tariff of 10% on goods imported to the United States. However, the company stated that a 10% tariff on pharmaceuticals would raise the cost of its biosimilars imported to the U.S. for customers by less than 1% of Alvotech's expected total product revenues in 2025.

This news has likely boosted investor confidence in Alvotech's ability to maintain its competitive edge in the U.S. market despite potential trade barriers. The minimal impact on revenues suggests that the company's pricing strategy and cost structure are robust enough to absorb potential tariffs without significantly affecting its bottom line or market position.