Shares of Alvotech (NASDAQ: ALVO) tumbled 10.54% in after-hours trading on Wednesday following the company's third-quarter earnings report that fell short of analyst expectations and included reduced full-year guidance.

The Iceland-based biosimilars developer reported Q3 revenue of $113.744 million, missing the consensus estimate of $117.203 million by 2.95%. Although the quarterly earnings per share of $(0.02) met expectations, investors appeared more concerned with the top-line miss and the company's revised outlook.

Alvotech lowered its full-year 2025 revenue guidance to a range of $570-$600 million, down from previous estimates. The company also reduced its adjusted EBITDA forecast to $130-$150 million. This downward revision comes despite a 24% increase in nine-month revenue to $420 million, as the company faces challenges including a 21% decline in adjusted EBITDA for the same period.

Adding to investor concerns, Alvotech highlighted ongoing issues from an FDA inspection of its Reykjavik facility in July as a "top priority." While the company emphasized that the facility remains FDA approved and continues production, the unresolved regulatory matters appear to be weighing on investor sentiment.

The sharp stock decline also reflects apprehension over Alvotech's cash position, which decreased to $42.8 million as of September 30, driven by inventory build-up for new launches, capital expenditures, and recent acquisitions. The company noted it has secured a new $100 million working capital option to address these needs, but the cash burn rate may be concerning to some investors.