Alvotech (ALVO) shares surged 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. This positive outlook has evidently boosted investor confidence in the biosimilars manufacturer.

The company, which manufactures its biosimilars in Iceland, currently faces a minimum tariff of 10% on goods imported to the United States. However, Alvotech reassured investors by stating that even if a 10% tariff on pharmaceuticals were to be implemented, it 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 announcement comes amidst growing concerns over potential trade tensions and their impact on the pharmaceutical industry. Alvotech's ability to mitigate the effects of possible tariffs appears to have resonated well with investors, as reflected in the significant pre-market stock movement. As the trading day unfolds, market participants will be closely watching to see if this positive momentum continues.