Shares of Alvotech (ALVO) surged 7.68% in after-hours trading on Wednesday following the company's release of impressive first-quarter 2025 results and an optimistic business update. The biotechnology firm, which specializes in developing and manufacturing biosimilar medicines, reported significant growth in revenues and provided an increased full-year guidance, boosting investor confidence.

Key highlights from Alvotech's Q1 2025 report include: - Total revenues reached $132.8 million, a 260% increase from $36.9 million in the same period last year. - Product revenues soared to $109.9 million, up 786% from $12.4 million in Q1 2024. - Adjusted EBITDA turned positive at $20.5 million, compared to negative $38.4 million in the previous year. - Net income stood at $109.68 million, or $0.35 per share, beating analyst estimates of $(0.11) per share.

Following these strong results and the recent acquisition of rights to a proposed biosimilar to Cimzia, Alvotech increased its full-year 2025 guidance. The company now expects top-line revenue between $600-$700 million and adjusted EBITDA of $200-$280 million. Robert Wessman, Chairman and CEO of Alvotech, expressed confidence in the company's future, stating, "Based on strong response to our acquisition of all rights to the proposed biosimilar to Cimzia and to the broadening of our development pipeline, we are increasing full year guidance."

Additionally, Alvotech reassured investors about the potential impact of U.S. tariffs on pharmaceuticals. The company stated that even if a 10% tariff were to be implemented, it would raise the cost of its biosimilars imported to the U.S. by less than 1% of Alvotech's expected total product revenues in 2025. This minimal impact, coupled with the strong financial performance and positive outlook, appears to have fueled the significant after-hours stock movement.