Alvotech
_____________________
Annual report and Report of the
Réviseur d’entreprises agréé as of
31 December 2023 and 2022 and for the
years ended 31 December 2023 and 2022
____________________
Alvotech
9, rue de Bitbourg
L-1273 Luxembourg
Grand Duchy of Luxembourg
RCS Luxembourg B 258.884
Alvotech
_____________________
Annual report and Report of the
Réviseur d’entreprises agréé as of
31 December 2023 and 2022 and for the
years ended 31 December 2023 and 2022
_____________________
Table of Contents
Endorsement by the Board of Directors 2-6
Report of the Réviseur d’entreprises agréé 7-11
Consolidated Statements of Profit or Loss and Other Comprehensive Income or Loss 12
Consolidated Statements of Financial Position 13-14
Consolidated Statements of Cash Flows 15-16
Consolidated Statements of Changes in Equity 17
Notes to the Consolidated Financial Statements 18-73
Corporate Governance Report 74-80
Non-financial disclosure 81-86
Alvotech
Société Anonyme
(the “Company”)
Registered Office: 9, rue de Bitbourg, L-1273 Luxembourg
R.C.S. Luxembourg B 258.884
Management report to the General Meeting of Shareholders
Dear shareholders,
We hereby wish to submit to you the financial statements of the Company and the Alvotech Group (“Alvotech” or
the “Group”) for the financial year ending on 31 December 2023. The present report relates to the consolidated
accounts in accordance with article 1720-1 (3) of the law of 10 August 1915 on commercial companies, as amended.
I. Business developments for the financial year ended 31 December 2023
On 25 January 2023, the Company issued an additional $10.0 million Tranche B of the December 2022 Convertible
Bonds.
On 6 February 2023, Alvotech announced that it had entered into an exclusive agreement with Advanz Pharma, for
the commercialization of AVT23, a proposed biosimilar to Xolair (omalizumab). The agreement covers the
European Economic Area, UK, Switzerland, Canada, Australia and New Zealand. According to the agreement,
Alvotech will be responsible for development and manufacture, while Advanz Pharma will handle registration and
commercialization.
On 10 February 2023, Alvotech completed a private placement for gross proceeds of $137.0 million, and transaction
costs of $4.1 million, of its Ordinary Shares at a purchase price of $11.57 per Ordinary Share.
On 27 February 2023, Alvotech and Teva signed an amendment to the License and Development Agreement. As
part of that amendment, Alvotech agreed to provide future financial consideration to Teva to assist with the cost of
launching and marketing the licensed biosimilar products.
On 19 May 2023, Alvotech entered into three termination agreements (the “Termination STADA Agreements”) with
STADA to terminate the license and supply agreements between Alvotech and STADA pertaining to Alvotech’s
product candidates AVT03, AVT05, and AVT16. Pursuant to the terms of the Termination STADA Agreements,
Alvotech repaid the aggregate amount of €17.4 million that Alvotech had previously received from STADA under
the Terminated STADA Agreements. All rights, title and/or interest in respect of the products which became jointly
owned as a result of the Agreements with STADA, excluding any trademarks of STADA and/or any of its affiliates,
fully reverted back to the entire and sole ownership alone by Alvotech. STADA has no further rights or licenses
under the Terminated STADA Agreements. The other agreements between Alvotech and STADA, that pertain to
AVT02, AVT04 and AVT06, were not terminated or amended.
On 24 May 2023, Alvotech announced that Alvotech and Advanz Pharma had extended their exclusive partnership
agreement, adding the supply and commercialization of five biosimilar candidates in Europe. Alvotech will be
responsible for development and commercial supply and Advanz Pharma will be responsible for registration and
commercialization in Europe. The agreement includes candidate biosimilars to Simponi (golimumab) and Entyvio
(vedolizumab) and also includes three additional early-stage, undisclosed biosimilar candidates. In conjunction with
these agreements, which included three biosimilar candidates previously licensed to STADA, Advanz Pharma
agreed to make upfront payments of $61 million and agreed to make additional payments for an aggregate amount of
up to $287.5 million, upon the achievement of certain development and commercial milestones.
2
In July 2023, the Company secured a private placement of the December 2022 Convertible Bonds denominated in
Icelandic krona and US dollar for a principal amount of $100 million. As part of this private placement, ATP
Holdings ehf., which is affiliated with Aztiq, acquired Tranche A Convertible Bonds in principal amount of $30
million
On 24 July 2023, Alvotech announced that it had expanded its strategic partnership agreement with Teva. The
expanded agreement pertained to the exclusive commercialization in the U.S. by Teva of two new biosimilar
candidates to be developed and manufactured by Alvotech and line extensions of two current biosimilar candidates
in the partnership, also to be developed and manufactured by Alvotech. The agreement includes milestone payments,
the majority paid following product approvals and upon achieving significant sales milestones. Teva and Alvotech
will share profit from the commercialization of the biosimilars. Teva also acquired Tranche B Convertible Bonds
which were issued by Alvotech pursuant to a convertible bond agreement, dated 20 December 2022, for $40 million.
In September 2023, Fuji Pharma received marketing approval for AVT04 from the Japanese Ministry of Health,
Labor and Welfare.
In October 2023, Alvotech announced that it had entered into an exclusive licensing agreement with Kashiv
Biosciences (“Kashiv”) for AVT23 (also called ADL018), a proposed biosimilar to Xolair (omalizumab), which is
currently in clinical development, following the termination of the co-development agreement with Biosana for this
product earlier in the year. The agreement covers all 27 countries of the European Union, the UK, Australia,
Canada, and New Zealand. Under terms of the agreement, Alvotech will receive an exclusive license to
commercialize AVT23, which will be developed and manufactured by Kashiv. Kashiv received an upfront payment
and is eligible for subsequent milestone payments and royalties.
The total assets as of December 31, 2023 amount to 950.1 million United States dollars (USD).
The financial year ending on 31 December 2023 has produced a loss of 551.7 million USD.
In addition to its operating results, as calculated in accordance with IFRS, the Group 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. 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 loss for the year to Adjusted EBITDA for the years ended 31 December 2023 and
2022, respectively:
3
USD in millions
2023 2022
Loss for the year
(551.7) (513.6)
Income tax benefit
(99.3) (38.1)
Total net finance costs
262.3 185.9
Depreciation and amortization
24.2 20.4
Impairment and loss of sale of property, plant and equipment
0.4 —
Impairment of intangible assets
1.8 2.8
Charge related to contract termination
18.5 —
Incentive plan expense
18.1 11.0
Share of net loss of joint venture
7.1 2.6
Impairment loss on investment in joint venture
21.5 —
Exchange rate differences
5.2 (10.6)
Share listing expense
— 83.4
Loss on extinguishment of financial liabilities — 27.3
Transaction costs
0.9 23.7
Adjusted EBITDA
(291.0) (205.2)
We suggest the following allocation of the result:
USD (million)
Result brought forward from the previous year (1,654.1)
Result for the year (551.7)
Distribution of dividends 0
Result to be carried forward to the following financial year (2,205.8)
II. Future developments
On 15 February 2024, the Company announced it has reached settlement agreements with Johnson & Johnson in
Japan, Canada and in the European Economic Area (EEA) for AVT04, a biosimilar to Stelara (ustekinumab).
Regulatory approval for AVT04 in these markets has already been granted. Market applications for AVT04 are
currently pending in additional global markets, including in the U.S. Alvotech's commercialization partner in
Canada, JAMP Pharma launched AVT04 in Canada on March 1, 2024. Launch of AVT04 in Japan is anticipated
after the upcoming round of National Health Insurance reimbursement price listings, in May 2024. Entry to the first
European markets is expected as soon as possible after the expiration date of the European Supplementary
Protection Certificate (SPC) for Stelara, which is in late July 2024.
On 23 February 2024, the Company announced that the U.S. Food and Drug Administration (FDA) has approved
SIMLANDI (adalimumab, or AVT02 for Alvotech) injection, as an interchangeable biosimilar to Humira, for the
treatment of adult rheumatoid arthritis, juvenile idiopathic arthritis, adult psoriatic arthritis, adult ankylosing
spondylitis, Crohn’s disease, adult ulcerative colitis, adult plaque psoriasis, adult hidradenitis suppurativa and adult
uveitis. In 2023, Humira was one of the highest-grossing pharmaceutical products in the world, with sales in the
U.S. of nearly $12.2 billion. Teva is Alvotech’s strategic partner for the exclusive commercialization of SIMLANDI
in the United States.
On 26 February 2024, the Company announced the sale of 10,127,132 Ordinary Shares for an approximate value of
$166 million (net proceeds of $160 million), par value USD 0.01 per share, at a purchase price of $16.41 per share,
or ISK 2,250 per share at foreign exchange rates on 23 February 2024. The Shares will be delivered to the Investors
4
from previously issued treasury shares held by Alvotech’s subsidiary, Alvotech Manco ehf. The Transaction took
place on the Nasdaq Iceland Exchange.
However, although management continues to pursue these plans, there is no assurance that the Group will be
successful in obtaining sufficient funding on terms acceptable to the Group to fund continuing operations, if at all. If
financing is obtained, the terms of such financing may adversely affect the holdings or the rights of the Group’s
shareholders. The ability to obtain funding, therefore, is outside of management’s control and is a material
uncertainty that may cast significant doubt upon the Group’s ability to continue as a going concern. See further
information in note 1.4.
III. Business risks and their mitigation
This section contains a summary of the main risks that the Group may face during the normal course of its business.
Detailed information on the Group’s risks relating to financial instruments, risk management objectives and policies
can be found in note 28.
Please note however, that
+ This section does not purport to contain an exhaustive list of the risks faced by the Group, as the Group
may be significantly affected by risks that it has not identified, or not considered as material;
+ Some risks faced by the Group, whether they are mentioned in this section or not, may arise from external
factors beyond the Group’s control;
+ Where means of mitigation are mentioned in this section, such mention does not constitute a guarantee that
the means of mitigation will be effective (in whole or in part) to remove or reduce the effect of the risk.
The Group’s business model is built around the development, manufacturing and commercialization of biosimilar
medicine. Development of biosimilar medicine is subjected to numerous risks, as the product travels through
different stages of development, scale-up, clinical, regulatory to name a few. On the commercial side the Group is
faced with an ever-changing competitive landscape, as well as pricing pressure for its products.
IV. Additional disclosures
Alvotech is committed to strong and transparent corporate governance. Our corporate governance framework, along
with our internal controls and policies, is intended to support sustainable financial performance and long-term value
creation for all of our stakeholders including shareholders, patients, employees and other stakeholders. Further
information on corporate governance can be found in these financial statements and on the Groups website at
www.alvotech.com.
Information about sustainability and non-financial reporting is disclosed in these financial statements, where
information about operations, environment, social environment and governance can be found.
In our opinion, the Consolidated Financial Statements of Alvotech as of 31 December 2023 and for the year then
ended with the file name 222100DCZBOWV5DZ8372-2023-12-31-en.zip is prepared, in all material respects, in
compliance with the ESEF Regulation.
Pursuant to Article 68 of the law of 19 December 2002 regarding the trade and companies' register and the
accounting as well as annual accounts of companies, as amended, the board of directors hereby declares:
a. To the best of our knowledge, we are not aware of any events which would have a material
bearing on the accounts since the end of the previous financial year. Information on subsequent
events can be found in note 30.
b. The Group's likely foreseeable future development is stable.
5
c. Research and development expenses consist primarily of costs incurred in connection with
Alvotech’s research, development and pre-commercial manufacturing activities prior to the
commercialization of its biosimilar products. Expenditures related to research and development
activities are generally recognized as an expense in the period in which they are incurred. Due to
significant regulatory uncertainties and other uncertainties inherent in the development of
pharmaceutical products, Alvotech did not capitalize any research and development expenses as
internally developed intangible assets during the year. 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. 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 trials. The Group conducts research and
development activities at its subsidiaries in Iceland, Germany and Switzerland.
d. The Group owned 22,905,618 treasury shares as of 31 December 2023.
e. The Group does not have established branches.
We kindly ask you to grant discharge to the directors for the exercise of their mandates during the financial year
ended on 31 December 2023.
Done in Luxembourg on 20 March 2024,
For the Board of Directors:
Robert Wessman
Title: CEO & Chairman
6
TotheShareholdersof
AlvotechS.A.
9,ruedeBitbourg
L-1273Luxembourg
REPORTOFTHEREVISEURD’ENTREPRISESAGREE
ReportontheAuditoftheConsolidatedFinancialStatements
Opinion
WehaveauditedtheconsolidatedfinancialstatementsofAlvotechS.A.anditssubsidiaries(the“Group”),whichcomprisethe
consolidatedstatementoffinancialpositionasatDecember31,2023,andtheconsolidatedstatementofprofitorlossandother
comprehensiveincomeorloss,consolidatedstatementofchangesinequityandconsolidatedstatementofcashflowsforthe
yearthenended,andnotestotheconsolidatedfinancialstatements,includingmaterialaccountingpolicyinformationandother
explanatoryinformation.
Inouropinion,theaccompanyingconsolidatedfinancialstatementsgiveatrueandfairviewoftheconsolidatedfinancial
positionoftheGroupasatDecember31,2023,andofitsconsolidatedfinancialperformanceanditsconsolidatedcashflowsfor
theyearthenendedinaccordancewithIFRSAccountingStandardsasadoptedbytheEuropeanUnion.
BasisforOpinion
WeconductedourauditinaccordancewiththeEURegulationN°537/2014,theLawofJuly23,2016ontheauditprofession
(Lawof23July2016)andwithInternationalStandardsonAuditing(ISAs)asadoptedforLuxembourgbytheCommissionde
SurveillanceduSecteurFinancier(CSSF).OurresponsibilitiesundertheEURegulationNo537/2014,theLawofJuly23,2016and
ISAsasadoptedforLuxembourgbytheCSSFarefurtherdescribedinthe“Responsibilitiesoftheréviseurd’entreprisesagrééfor
theAuditoftheConsolidatedFinancialStatements”sectionofourreport.WearealsoindependentoftheGroupinaccordance
withtheInternationalCodeofEthicsforProfessionalAccountants,includingInternationalIndependenceStandards,issuedby
theInternationalEthicsStandardsBoardforAccountants(IESBACode)asadoptedforLuxembourgbytheCSSFtogetherwiththe
ethicalrequirementsthatarerelevanttoourauditoftheconsolidatedfinancialstatements,andhavefulfilledourotherethical
responsibilitiesunderthoseethicalrequirements.Webelievethattheauditevidencewehaveobtainedissufficientand
appropriatetoprovideabasisforouropinion.
Deloitte Audit
Société à responsabilité limitée
20 Boulevard de Kockelscheuer
L-1821 Luxembourg
B.P. 1173
L-1011 Luxembourg
Tel: +352 451 451
www.deloitte.lu
Sociétéàresponsabilitélimitéeaucapitalde360.000€
RCSLuxembourgB67.895
Autorisationd’établissement100221797
©DeloitteAudit,SARL
7
MaterialUncertaintyRelatedtoGoingConcern
WedrawyourattentiontoNote1.4totheconsolidatedfinancialstatements,whichindicatesthat,theGroupincurredrecurring
lossessinceitsinception,includingnetlossesof$551.7millionand$513.6millionfortheyearsended31December2023and
2022,respectively,andhadanaccumulateddeficitof$2,205.8millionasof31December2023.TheGrouphasnotgenerated
positiveoperationalcashflow,largelyduetothecontinuedfocusonbiosimilarproductdevelopmentandexpansionefforts.In
February2024,theclosingoftheprivateplacementequityofferingprovidedtheGroupwithgrossproceedsof$166million(net
proceedsof$160million)thatisexpectedtobeusedtofinancegeneralcorporatepurposesandworkingcapital,tostrengthen
itsproductioncapacityandtosupportexpectedbiosimilarslaunches.Additionally,theGroupexpectstocontinuetosourceits
financingduringthedevelopmentofitsbiosimilarproductsfromexistingout-licensecontractswithcustomers. Theseeventsor
conditions,alongwiththemattersassetforthinNote1.4,indicatethatamaterialuncertaintyexiststhatmaycastsignificant
doubtontheGroup’sabilitytocontinueasagoingconcern.Ouropinionisnotmodifiedinrespectofthismatter.
KeyAuditMatters
Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthe
consolidatedfinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextoftheauditofthe
consolidatedfinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopinionon
thesematters.
KeyAuditMatter HowtheKeyAuditMatterWasAddressedintheAudit
DeferredTaxAssets—RefertoNote2.4andNote10tothe
ConsolidatedFinancialStatements
TheGrouphasdeferredtaxassetsprimarilyrelatedtotax
lossescarriedforwardarisinginIceland.AsofDecember31,
2023,managementconsidersprobablethatfuturetaxable
profitwillbeavailableagainstwhichtheunusedtaxlossescan
beutilized.
Thecarryingamountofdeferredtaxassetsisreviewedatthe
endofeachreportingperiodandimpairedtotheextentthatit
isnolongerprobablethatsufficienttaxableprofitswillbe
availabletoallowallorpartoftheassettoberecovered.
Thevaluationofdeferredtaxassetsontaxlossesrequires
managementtomakesignificantestimatesrelatedtothe
futuretaxableincome.Theassessmentofthelikelihoodof
futuretaxableprofitsresultingfromtheproductrevenues
beingavailablerequiressignificantmanagementjudgement.
ThedeferredtaxbalanceasofDecember31,2023was
$309,807,whichisprimarilyrelatedtotaxlossesarisingin
Iceland.
Giventhecomplexityandsubjectivityofmanagement’s
valuationprocess,auditingmanagement’sestimatesoffuture
taxableprofitandthedeterminationofwhetheritisprobable
thatthedeferredtaxassetswillberealizedinvolvedan
increasedextentofeffort.
Our audit procedures related to estimates of future taxable
profit and determination of whether it is probable that the
deferred tax assets will be realized included the following,
amongothers:
+ We evaluated management’s assessment over the
identifiable causes that resulted in the unused tax
losses and the nature of evidence used by
management on its assessment that the losses are
unlikelytorecur.
+ With the assistance of our tax specialists
knowledgeable in Iceland-specific tax matters, we
evaluated whether management’s estimates of
futuretaxableprofitwereconsistentwith available
evidence related to management’s assessment of
the likelihood of future taxable profits being
available.
+ Weevaluatedthereasonablenessofmanagement’s
estimates of future taxable profit considering
available external third-party data, internal and
external communications of management and the
Board of Directors, and holding discussions with
relevantpersonnel.
+ Reviewingtheadequacyofthedisclosuresmadeby
theGroupinaccordancewithIFRS.
8
Otherinformation
TheBoardofDirectorsisresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationstatedinthe
consolidatedmanagementreportandtheCorporateGovernanceStatementbutdoesnotincludetheconsolidatedfinancial
statementsandourreportoftheréviseurd’entreprisesagrééthereon.
Ouropinionontheconsolidatedfinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformof
assuranceconclusionthereon.
Inconnectionwithourauditoftheconsolidatedfinancialstatements,ourresponsibilityistoreadtheotherinformationand,in
doingso,considerwhethertheotherinformationismateriallyinconsistentwiththeconsolidatedfinancialstatementsorour
knowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,we
concludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthisfact.Wehavenothingto
reportinthisregard.
ResponsibilitiesoftheBoardofDirectorsandThoseChargedwithGovernancefortheConsolidatedFinancialStatements
TheBoardofDirectorsisresponsibleforthepreparationandfairpresentationoftheseconsolidatedfinancialstatementsin
accordancewithIFRSAccountingStandardsasadoptedbytheEuropeanUnion,andforsuchinternalcontrolastheBoardof
Directorsdeterminesisnecessarytoenablethepreparationofconsolidatedfinancialstatementsthatarefreefrommaterial
misstatement,whetherduetofraudorerror.
InpreparingtheconsolidatedfinancialstatementstheBoardofDirectorsisresponsibleforassessingtheGroup’sabilityto
continueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisof
accountingunlesstheBoardofDirectorseitherintendstoliquidatetheGrouportoceaseoperations,orhasnorealistic
alternativebuttodoso.
TheBoardofDirectorsisresponsibleforpresentingandmarkinguptheconsolidatedfinancialstatementsincompliancewith
therequirementssetoutintheDelegatedRegulation2019/815onEuropeanSingleElectronicFormatasamended(“theESEF
Regulation”).
ThosechargedwithgovernanceareresponsibleforoverseeingtheGroup’sfinancialreportingprocess.
Responsibilitiesoftheréviseurd’entreprisesagrééfortheAuditoftheConsolidatedFinancialStatements
TheobjectivesofourauditaretoobtainreasonableassuranceaboutwhethertheConsolidatedFinancialStatementsasawhole
arefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueareportoftheréviseurd’entreprisesagrééthat
includesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedin
accordancewiththeEURegulationN°537/2014,theLawofJuly23,2016andwithISAsasadoptedforLuxembourgbytheCSSF
willalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsidered
9
materialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofusers
takenonthebasisoftheseconsolidatedfinancialstatements.
AspartofanauditinaccordancewiththeEURegulationN°537/2014,theLawofJuly23,2016andwithISAsasadoptedfor
LuxembourgbytheCSSF,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.We
also:
+ Identifyandassesstherisksofmaterialmisstatementoftheconsolidatedfinancialstatements,whetherduetofraudor
error,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientand
appropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudis
higherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,
misrepresentations,ortheoverrideofinternalcontrol.
+ Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriate
inthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheGroup’sinternal
control.
+ Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelated
disclosuresmadebytheBoardofDirectors.
+ ConcludeontheappropriatenessofBoardofDirectorsuseofthegoingconcernbasisofaccountingand,basedonthe
auditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificant
doubtontheGroup’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,weare
requiredtodrawattentioninourreportoftheréviseurd’entreprisesagréétotherelateddisclosuresintheconsolidated
financialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheaudit
evidenceobtaineduptothedateofourreportoftheréviseurd’entreprisesagréé.However,futureeventsorconditions
maycausetheGrouptoceasetocontinueasagoingconcern.
+ Evaluatetheoverallpresentation,structureandcontentoftheconsolidatedfinancialstatements,includingthe
disclosures,andwhethertheconsolidatedfinancialstatementsrepresenttheunderlyingtransactionsandeventsina
mannerthatachievesfairpresentation.
+ Obtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesandbusinessactivities
withintheGrouptoexpressanopinionontheconsolidatedfinancialstatements.Weareresponsibleforthedirection,
supervisionandperformanceoftheGroupaudit.Weremainsolelyresponsibleforourauditopinion.
Ourresponsibilityisalsotoassesswhethertheconsolidatedfinancialstatementshavebeenpreparedinallmaterialrespects
withtherequirementslaiddownintheESEFRegulation.
Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingofthe
auditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.
Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirements
regardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughtto
bearonourindependence,andwhereapplicable,actionstakentoeliminatethreatsorsafeguardsapplied.
10
Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmost
significanceintheauditoftheconsolidatedfinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.
Wedescribethesemattersinourreportunlesslaworregulationprecludespublicdisclosureaboutthematter.
ReportonOtherLegalandRegulatoryRequirements
Wehavebeenappointedasréviseurd’entreprisesagréébytheBoardofDirectorsonJune6,2023andthedurationofour
uninterruptedengagement,includingpreviousrenewalsandreappointments,is2years.
Theconsolidatedmanagementreportisconsistentwiththeconsolidatedfinancialstatementsandhasbeenpreparedin
accordancewithapplicablelegalrequirements.
TheaccompanyingCorporateGovernanceStatementispresentedonpages74to80.TheinformationrequiredbyArticle68ter
paragraph(1)lettersc)andd)ofthelawof19December2002onthecommercialandcompaniesregisterandontheaccounting
recordsandannualaccountsofundertakings,asamended,isconsistentwiththeconsolidatedfinancialstatementsandhasbeen
preparedinaccordancewithapplicablelegalrequirements.
WehavecheckedthecomplianceoftheconsolidatedfinancialstatementsoftheGroupasatDecember31,2023withthe
relevantstatutoryrequirementssetoutintheESEFRegulationthatareapplicabletofinancialstatements
FortheGroupitrelatesto:
† FinancialstatementspreparedinavalidxHTMLformat;
† TheXBRLmarkupoftheconsolidatedfinancialstatementsusingthecoretaxonomyandthecommonruleson
markupsspecifiedintheESEFRegulation.
Inouropinion,theconsolidatedfinancialstatementsoftheGroupasatDecember31,2023,havebeenprepared,inallmaterial
respects,incompliancewiththerequirementslaiddownintheESEFRegulation.
Weconfirmthattheauditopinionisconsistentwiththeadditionalreporttotheauditcommittee.
Weconfirmthattheprohibitednon-auditservicesreferredtointheEURegulationN°537/2014werenotprovidedandthatwe
remainedindependentoftheGroupinconductingtheaudit.
ForDeloitteAudit,Cabinetderévisionagréé
LudovicMosca,Réviseurd’entreprisesagréé
Partner
March20,2023
11
Consolidated Statements of Profit or Loss and Other Comprehensive Income or Loss for the years ended 31 December
2023 and 2022.
USD in thousands, except for per share amounts Notes 2023 2022
Product revenue 5 48,699 24,836
License and other revenue 5 42,735 58,193
Other income 1,948 1,988
Cost of product revenue (160,856 ) (64,095 )
Research and development expenses (210,827 ) (180,622 )
General and administrative expenses (76,559 ) (186,742 )
Operating loss (354,860 ) (346,442 )
Share of net loss of joint venture 27 (7,153 ) (2,590 )
Impairment loss on investment in joint venture
27 (21,519 ) —
Finance income 7 4,823 2,549
Finance costs 7 (267,157 ) (188,419 )
Exchange rate differences (5,183 ) 10,566
Loss on extinguishment of financial liabilities 21 — (27,311 )
Non-operating loss (296,189 ) (205,205 )
Loss before taxes (651,049 ) (551,647 )
Income tax benefit 10 99,318 38,067
Loss for the year (551,731 ) (513,580 )
Other comprehensive loss
Item that will be reclassified to profit or loss in subsequent periods:
Exchange rate differences on translation of foreign operations (86 ) (6,111 )
Total comprehensive loss (551,817 ) (519,691 )
Loss per share
Basic and diluted loss for the year per share 11 (2.43 2.60
The accompanying notes are an integral part of these Consolidated Financial Statements.
12
Consolidated Statements of Financial Position as of 31 December 2023 and 2022
USD in thousands
Non-current assets Notes
31 December
2023
31 December
2022
Property, plant and equipment 12 236,779 220,594
Right-of-use assets 13 119,802 47,501
Goodwill 14 12,058 11,643
Other intangible assets 15 19,076 25,652
Contract assets 5 10,856 3,286
Investment in joint venture 27 18,494 48,568
Other long-term assets 2,244 5,780
Restricted cash 16 26,132 25,187
Deferred tax assets 10 309,807 209,496
Total non-current assets 755,248 597,707
Current assets
Inventories 17 74,433 71,470
Trade receivables 41,292 32,972
Contract assets 5 35,193 25,370
Other current assets 18 31,871 32,949
Receivables from related parties 25 896 1,548
Cash and cash equivalents 16 11,157 66,427
Total current assets 194,842 230,736
Total assets 950,090 828,443
The accompanying notes are an integral part of these Consolidated Financial Statements.
13
Consolidated Statements of Financial Position as of 31 December 2023 and 2022
USD in thousands
Equity Notes
31 December
2023
31 December
2022
Share capital 19 2,279 2,126
Share premium 19 1,229,690 1,058,432
Other reserves 20 42,911 30,582
Translation reserve (1,528 ) (1,442 )
Accumulated deficit (2,205,845 ) (1,654,114 )
Total equity (932,493 ) (564,416 )
Non-current liabilities
Borrowings 21 922,134 744,654
Derivative financial liabilities 28 520,553 380,232
Other long-term liability to related party 2 — 7,440
Lease liabilities 13 105,632 35,369
Long-term incentive plan 22 — 544
Contract liabilities 5 73,261 57,017
Deferred tax liability 10 53 309
Total non-current liabilities 1,621,633 1,225,565
Current liabilities
Trade and other payables 80,563 49,188
Lease liabilities 13 9,683 5,163
Current maturities of borrowings 21 38,025 19,916
Liabilities to related parties 25 9,851 1,131
Contract liabilities 5 59,183 36,915
Taxes payable 925 934
Other current liabilities 26 62,720 54,047
Total current liabilities 260,950 167,294
Total liabilities 1,882,583 1,392,859
Total equity and liabilities 950,090 828,443
The accompanying notes are an integral part of these Consolidated Financial Statements.
14
Consolidated Statements of Cash Flows for the years ended 31 December 2023 and 2022.
USD in thousands
Cash flows from operating activities Notes 2023 2022
Loss for the year (551,731 ) (513,580 )
Adjustments for non-cash items:
Gain on extinguishment of SARs liability 22 — (4,803 )
Share-listing expense 1.1 — 83,411
Long-term incentive plan expense 22 78 5,492
Depreciation and amortization 8 24,210 20,409
Impairment of other intangible assets 15 1,779 2,755
Change in allowance for receivables 18,500 —
Change in inventory reserves 17 8,341 —
Loss on disposal of property, plant and equipment 365 —
Impairment loss on investment in joint venture 27 21,519 —
Share of net loss of joint venture 27 7,153 2,590
Finance income 7 (4,823 ) (2,549 )
Finance costs 7 267,157 188,419
Loss/(Gain) on extinguishment of financial liabilities 21 — 27,311
Share-based payments 23 18,033 10,317
Exchange rate difference 5,183 (10,566 )
Income tax benefit 10 (99,318 ) (38,067 )
Operating cash flow before movement in working capital (283,554 ) (228,861 )
Increase in inventories 17 (11,304 ) (32,412 )
Increase in trade receivables (8,320 ) (3,576 )
Increase in liabilities with related parties 2,161 56
Increase in contract assets 5 (17,393 ) (9,218 )
Increase in other assets (802 ) (17,194 )
Increase in trade and other payables 31,772 16,442
Increase in contract liabilities 5 35,396 19,396
Decrease in other liabilities (5,182 ) (21,384 )
Cash used in operations (257,226 ) (276,751 )
Interest received 3,649 568
Interest paid (57,254 ) (35,372 )
Income tax paid (1,354 ) (834 )
Net cash used in operating activities (312,185 ) (312,389 )
Cash flows from investing activities
Acquisition of property, plant and equipment 12 (33,234 ) (37,880 )
Disposal of property, plant and equipment 12 133 379
Acquisition of intangible assets 15 (13,239 ) (11,122 )
Restricted cash in connection with amended bond agreement 21 — (14,914 )
Net cash used in investing activities (46,340 ) (63,537 )
Cash flows from financing activities
Repayments of borrowings 21 (99,367 ) (34,714 )
Repayments of principal portion of lease liabilities 13 (8,269 ) (11,147 )
Proceeds from new borrowings 21 278,831 193,678
Transaction cost from new borrowings 21 (9,004 ) —
Gross proceeds from private placement equity offering 136,879 —
15
Gross private placement equity offering fee (4,141 ) —
Proceeds from warrants 6,390 —
Transaction costs for amended borrowing agreements 21 — (12,102 )
Gross proceeds from the PIPE Financing 1.1 — 174,930
Gross PIPE Financing fees paid 1.1 — (5,562 )
Proceeds from the Capital Reorganization 1.1 — 9,827
Proceeds from loans from related parties 21 — 160,000
Repayment of loans from related parties 21 — (50,000 )
Net cash generated from financing activities 301,319 424,910
Increase / (decrease) in cash and cash equivalents (57,206 ) 48,984
Cash and cash equivalents at the beginning of the year 16 66,427 17,556
Effect of movements in exchange rates on cash held 1,936 (113 )
Cash and cash equivalents at the end of the year 16 11,157 66,427
Supplemental cash flow disclosures (Note 29)
The accompanying notes are an integral part of these Consolidated Financial Statements.
16
Consolidated Statements of Changes in Equity for the years ended 31 December 2023 and 2022
USD in thousands
Share
capital
Share
premium
Other
reserves
Translation
reserve
Accumulated
deficit Total equity
At 1 January 2022 135 1,000,118 — 4,669 (1,140,534 ) (135,612 )
Loss for the year — — — — (513,580 ) (513,580 )
Foreign currency translation differences — — — (6,111 ) — (6,111 )
Total comprehensive loss — — — (6,111 ) (513,580 ) (519,691 )
PIPE Financing 175 169,193 — — — 169,368
Settlement of SARs with shares 35 30,267 — — — 30,302
Capital Reorganization 1,731 (173,296 ) — — — (171,565 )
Settlement of related party loans with
Ordinary Shares 50 32,150 — — — 32,200
Recognition of share-based payments — — 14,548 — — 14,548
Recognition of equity component of
convertible bonds — — 16,034 — — 16,034
At 31 December 2022 2,126 1,058,432 30,582 (1,442 ) (1,654,114 ) (564,416 )
Loss for the year — — — — (551,731 ) (551,731 )
Foreign currency translation differences — — — (86 ) — (86 )
Total comprehensive loss — — — (86 ) (551,731 ) (551,817 )
Capital contribution 118 132,618 — — — 132,736
Vested earn-out shares 6 8,300 — — — 8,306
Penny warrants exercised 25 27,159 — — — 27,184
Public warrants exercised 6 7,612 — — — 7,618
Recognition of share-based payments — — 16,985 — — 16,985
Settlement of RSUs with shares 8 5,095 (5,781 ) — — (678 )
Settlement of SARs with shares (10 ) (9,526 ) (4,231 ) — — (13,767 )
Recognition of equity component of
convertible bonds — — 5,356 — — 5,356
At 31 December 2023 2,279 1,229,690 42,911 (1,528 ) (2,205,845 ) (932,493 )
The accompanying notes are an integral part of these Consolidated Financial Statements.
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
19
Notes to the Consolidated Financial Statements
20
Notes to the Consolidated Financial Statements
21
Notes to the Consolidated Financial Statements
22
Notes to the Consolidated Financial Statements
23
Notes to the Consolidated Financial Statements
24
Notes to the Consolidated Financial Statements
25
Notes to the Consolidated Financial Statements
26
Notes to the Consolidated Financial Statements
27
Notes to the Consolidated Financial Statements
28
Notes to the Consolidated Financial Statements
29
Notes to the Consolidated Financial Statements
30
Notes to the Consolidated Financial Statements
31
Notes to the Consolidated Financial Statements
32
Notes to the Consolidated Financial Statements
33
Notes to the Consolidated Financial Statements
34
Notes to the Consolidated Financial Statements
35
Notes to the Consolidated Financial Statements
36
Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
40
Notes to the Consolidated Financial Statements
41
Notes to the Consolidated Financial Statements
42
Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
50
Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Notes to the Consolidated Financial Statements
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Corporate Governance Report for 2023
This corporate governance report (the “Report”) covers the period from 1 January 2023 through 31 December 2023
of Alvotech, a société anonyme, incorporated and existing under the laws of the Grand Duchy of Luxembourg,
registered with the Luxembourg Trade and Companies' Register under number B258884, having its registered office
at 9, rue de Bitbourg, L-1273 Luxembourg, Grand Duchy of Luxembourg (“Alvotech” or the “Company”).
Alvotech was incorporated on August 23, 2021 for the sole purpose of completing a business combination between
Alvotech Holdings S.A., Oaktree Acquisition Corp. II and Alvotech. The business combination closed on 15 June
2022 and, concurrently with the closing, the current Directors of Alvotech S.A. were appointed.
The ordinary shares and warrants of Alvotech are listed on The Nasdaq Stock Market LLC (“Nasdaq US”) under
the symbol “ALVO” and “ALVOW”, respectively, since 16 June 2022. Alvotech’s ordinary shares are also listed on
the Nasdaq Iceland Main Market under the ticker symbol “ALVO” since 8 December 2022 and, prior to that, on the
Nasdaq First North Growth Market since 23 June 2022 until their admission to trading to the Nasdaq Iceland Main
Market. This Report will be a part of the Annual Report for the year ended 31 December 2023, and has been
approved by the board of directors of the Company (the “Board of Directors” or “Board”) and reviewed by its
Audit Committee.
As regards general meetings of shareholders, at an ordinary general meeting, there is no quorum requirement and
resolutions are adopted by a simple majority cast votes. Abstentions are not considered “votes”.
Resolutions at an extraordinary general meeting are required for any of the following matters, among others (i) an
increase or decrease of the authorized or issued capital, (ii) a limitation or exclusion of preferential subscription
rights, (iii) approval of a statutory merger or de-merger (scission), (iv) Alvotech’s dissolution and liquidation, (v)
any and all amendments to Alvotech´s articles of association and (vi) change of nationality. Pursuant to Alvotech´s
articles of associations, for any resolution to be considered at an extraordinary general meeting of shareholders, the
quorum shall be at least one half of Alvotech´s issued share capital unless otherwise mandatorily required by law. If
the said quorum is not present, a second meeting may be convened, for which Luxembourg Company Law does not
prescribe a quorum. Any extraordinary resolution shall be adopted at a quorate general meeting, except otherwise
provided by law, by at lease a two-thirds majority of the votes validly cast on such resolution by shareholders.
Abstentions are not considered “votes”.
An annual general meeting of shareholders (“AGM”) shall be held in the Grand Duchy of Luxembourg within 6
months of the end of the preceding financial year.
Each Ordinary Share entitles the holder thereof to one vote. Neither Luxembourg law nor Alvotech´s articles of
association contain any restrictions as to the voting of Ordinary Shares by non-Luxembourg residents. The
Luxembourg Company Law distinguishes ordinary general meeting of shareholders and extraordinary general
meetings of shareholders with respect to the required quorums and majorities.
Alvotech is committed to recognizing general principles aimed to ensure good corporate governance. Our approach
to corporate governance is further described in this Report.
Alvotech’s corporate governance consists of a framework of principles and rules, including its Articles of
Association, the 6
th
edition from February 2021 of the Guidelines on Corporate Governance issued by the Iceland
Chamber of Commerce, Nasdaq Iceland Main Market and the Confederation of Icelandic Employers. The Board of
Directors also adopted a Code of Business Conduct and Ethics (the “Code”) applicable to the directors, officers,
employees and other team members that complies with the rules and regulations of Nasdaq US, Nasdaq Iceland
Main Market, and the SEC. The Code is available on Alvotech’s website.
Alvotech’s regulatory framework for corporate governance practices consists of the law applicable listed
companiesas well as other applicable law and regulations, including those imposed by Nasdaq Iceland Main Market
and Nasdaq US available at their respective websites.
The Board of Directors is committed to excellence in corporate governance by complying with the applicable
regulatory standards and international best practices in the field of corporate governance.
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All directors of the Company must act honestly, with due skill and care in the best interests of the Company and the
group. All directors must adhere to the highest standards of honest and ethical conduct, including taking proper and
due actions to avoid any conflicts of interest in his or her dealings with the Alvotech or the group, or dealings with
other parties that may relate to or affect the group of Alvotech, its interest and assets.
Internal Control
The Audit and Risk Committee is responsible, among other things, for establishing procedures for the confidential
anonymous submission of complaints (a whistle blowing mechanism).
Risk Management
Alvotech has a strong track record of growth. The Board of Directors is responsible for overseeing Alvotech’s risk
management process. The Board of Directors focuses on Alvotech’s general risk management strategy, the most
significant risks, and oversees the implementation of risk mitigation strategies by management. The audit and risk
committee is also responsible for discussing Alvotech’s policies with respect to risk assessment and risk
management. The Board of Directors believes its administration of its risk oversight function has not negatively
affected the Board’s leadership structure. As part of the steady expansion of Alvotech´s risk management processes,
the Company has launched a number of initiatives. Each initiative is contributing to achieving the company´s
objectives with regard to efficacy and efficiency of operations, reliability of financial reporting and compliance with
applicable laws and regulations. The Company has identified certain key risks that are given special attention and
monitored.
Audit, accounting and risk
The Board of Directors adopted the Audit and Risk Committee Charter. The Chief Executive Officer of the
Company ensures that the directors are provided with accurate information on Alvotech´s finances, development,
operations and risk assessments on a regular basis and the Audit and Risk Committee assists the Board in fulfilling
its oversight responsibilities concerning the financial reporting process and the system of internal controls. The
Board of Directors ensures that internal procedures for risk management are revised at least annually.
The consolidated financial statements are published on an annual, semi-annual and quarterly basis as applicable,
subject to and in accordance with applicable publication requirements under Icelandic and/or Luxembourg and/or
U.S laws.
The AGM appoints the independent auditor (réviseur d´entreprises agréé) and shall determine their office, in
accordance with Alvotech´s Articles of Association. The Board´s proposal to the AGM is based on the Audit and
Risk Committee´s recommendation on the selection of an audit firm the statutory auditors and shall determine their
office, which may not exceed six years, in accordance with Alvotech´s Articles of Association. The Board´s
proposal to the AGM is based on the Audit and Risk Committee´s recommendation on the selection of an audit firm.
Deloitte hf. has carried out the external audit of Alvotech in recent years. In addition, Deloitte Audit (20, Boulevard
de Kockelscheuer L-1821, Luxembourg, Grand Duchy of Luxembourg) is appointed as the independent auditor
(réviseur d´entreprises agréé) of Alvotech and in recent years conducted external audits in accordance with the
Luxembourg law of 23 July 2016 on the audit profession (the “Audit Law”). In accordance with article 51 of the
Audit Law and by way of derogation from Article 17 (1) of Regulation (EU) No 537/2014, the maximum duration of
a statutory audit of a public-interest entity may be of 20 years, where a public tendering process for the statutory
audit is conducted in accordance with paragraphs 2 to 5 of Article 16 of the above-mentioned regulation.
Compliance
Alvotech has a Compliance function. The General Counsel of the company is the Compliance Officer and is
responsible for the Code, the training of employees and business ethics. Under the Icelandic law no. 60/2021 on
actions against market abuse a Securities Compliance Officer has been appointed to oversee the compliance in
accordance with the above-mention law and in compliance with the Company´s Insider Trading policy. The
Securities Compliance Officer is responsible for assessing and monitoring if Alvotech, its directors, officers and
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employees are in compliance with the laws and regulations that apply to a company listed on the Nasdaq Iceland
Main Market. The Compliance Officer monitors if the company is in compliance with other applicable law and the
Company´s Business Code of Conduct.
Code of Business Conduct and Ethics
The Board of Directors adopted a Code of Business Conduct and Ethics for Alvotech´s directors, officers and
employees. The Code sets out Alvotech´s code of business conduct and ethics, consisting of the principal business,
ethical, moral and legal standards which Alvotech´s directors, officers and employees are required to observe. The
aim of the Code is a further testament to Alvotech´s commitment to sustainability, having oversight and managing
relevant environment, social and government risks and opportunities in Alvotech´s operations and value chain.
Sustainability
Alvotech has adopted a Sustainability Policy that is focused on making its operations exemplary in the
pharmaceutical environment based on established international environmental, social and governance (“ESG”)
criteria. The company has a created a separate ESG report for 2023 that will be attached to the 2023 financials.
Board Committees
Alvotech has five committees of the Board of Directors (an audit and risk committee, a compensation committee, a
nominating and corporate governance committee, a strategy committee and a corporate sustainability committee).
All the committees are constituted of members of the Board based on their expertise, skills and experience relevant
to that Committee and in accordance with the rules set for each committee by the Board.
Audit and Risk Committee
The members of Alvotech’s audit and risk committee are Dr. Linda McGoldrick (Chair), Ann Merchant and Richard
Davies. Each member of Alvotech’s audit and risk committee qualifies as independent directors according to the
rules and regulations of the SEC and Nasdaq with respect to audit and risk committee membership. In addition, all
audit and risk committee members meet the requirements for financial literacy under applicable SEC and Nasdaq
rules and at least one of the audit and risk committee members qualifies as an “audit and risk committee financial
expert,” as such term is defined in Item 407(d) of Regulation S-K under the United States Securities Act of 1933, as
amended. The audit and risk committee is responsible for, among other things:
+ appointing, compensating, retaining, evaluating, terminating and overseeing our independent registered
public accounting firm;
+ discussing with our independent registered public accounting firm their independence from management;
+ reviewing, with our independent registered public accounting firm, the scope and results of their audit;
+ approving all audit and permissible non-audit services to be performed by our independent registered public
accounting firm;
+ overseeing the financial reporting process and discussing with management and our independent registered
public accounting firm the annual financial statements that we file with the SEC;
+ overseeing our financial and accounting controls and compliance with legal and regulatory requirements;
+ reviewing our policies on risk assessment and risk management;
+ reviewing related party transactions; and
+ establishing procedures for the confidential anonymous submission of concerns regarding questionable
accounting, internal controls or auditing matters.
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Compensation Committee
Richard Davies (Chair), Árni Harðarson and and Tomas Ekman. Mr. Davies qualifies as an independent director
according to the rules and regulations of the SEC and Nasdaq with respect to compensation committee membership,
including the heightened independence standards for members of a compensation committee. The compensation
committee is responsible for, among other things:
+ reviewing and approving the corporate goals and objectives, evaluating the performance of and reviewing
and approving, (either alone or, if directed by the board of directors, in conjunction with a majority of the
independent members of the board of directors) the compensation of our chief executive officer;
+ overseeing an evaluation of the performance of and reviewing and setting or making recommendations to
our board of directors regarding the compensation of our other executive officers;
+ reviewing and approving or making recommendations to our board of directors regarding our incentive
compensation and equity-based plans, policies and programs;
+ reviewing and approving all employment agreement and severance arrangements for our executive officers;
+ making recommendations to our shareholders regarding the compensation of our directors; and
+ retaining and overseeing any compensation consultants.
Corporate Sustainability Committee
The members of Alvotech’s ESG committee are Ann Merchant (Chair), Árni Hardarson and Róbert Wessman. The
ESG committee is responsible for, among other things:
+ reviewing, monitoring and setting strategy in the area of corporate responsibility;
+ overseeing Alvotech’s activities in the area of corporate responsibility that may have an impact on the
Company’s reputation and operations;
+ periodically assess the Alvotech’s compliance obligations;
+ monitor and review matters of health and safety and report findings to the broader board; and
+ review and evaluate environmental, social and political issues and trends and their relevance to Alvotech’s
business and make recommendations to the board regarding those trends and issues.
Nomination and Corporate Governance Committee
The members of Alvotech’s nominating and corporate governance committee are Richard Davies (Chair), Dr. Linda
McGoldrick and Ann Merchant. The nominating committee is responsible for, among other things:
+ identifying individuals qualified to become members of our board of directors, consistent with
criteria approved by our board of directors;
+ overseeing succession planning for our Chief Executive Officer and other executive officers;
+ periodically reviewing our board of directors’ leadership structure and recommending any
proposed changes to our board of directors;
+ overseeing an annual evaluation of the effectiveness of our board of directors and its committees;
and
+ developing and recommending to our board of directors a set of corporate governance guidelines.
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Strategy Committee
The Strategy committee is responsible for, among other things, reviewing, monitoring and setting strategy for the
business of Alvotech. The members of Alvotech’s Strategy committee are Faysal Kalmoua (Chair), Lisa Graver and
Róbert Wessman.
The structure and composition of the Board of Directors
Alvotech’s Board of Directors is currently composed of eight members. In accordance with Alvotech’s Articles of
Association, the Board is not divided into classes of directors. Each director was appointed at the closing of the
business combination on June 15, 2022, to serve as director until the end of the general meeting of shareholders
called to approve the Alvotech’s annual accounts for the 2024 financial year. There are no limitations on the
duration of the board membership. The composition of the board shall at any time be diverse, with regard to
educational and professional background, gender and age.
The board undertakes Alvotech´s affairs in between shareholders´ meetings unless otherwise provided by law or
Alvotech´s Articles of Association. The board is responsible for setting Alvotech´s general strategy. The board has a
supervisory role in overseeing that Alvotech´s organization and activities are at all times in accordance with the
relevant law, regulation and good business practices. The board met 16 times last year.
Members of the Board of Directors
Robert Wessman, Chairman and CEO, is the founder of Alvotech and has served as Executive Chairman and
member of the board of directors of Alvotech since January 2019. Since November 2018, he has also served as
Director at Fuji Pharma and chairman of the board of directors of Lotus Pharmaceuticals and since May 2009, he has
served as a member of the board of directors of Aztiq and as a member of the board of directors of Aztiq GP, the
general partner of Aztiq Fund I SCSp, a Luxembourg alternative investment fund, and the parent company of Aztiq.
Mr. Wessman is also the founder and main partner of the Aztiq group. Mr. Wessman founded Alvogen in July 2009,
and served as its Executive Chairman and Chief Executive Officer until June 2022. He continues to serve as
Alvogen’s chairman since July 2022. Between 1999 and 2008, Mr. Wessman served as the Chief Executive Officer
of Actavis. He has a Bachelor of Science degree in Business Administration from the University of Iceland. We
believe Mr. Wessman is qualified to serve on Alvotech’s board of directors due to the perspective he brings as
Alvotech’s founder and his experience in top executive positions in the pharmaceutical industry.
Richard Davies, Director and Deputy Chairman, has served as Deputy Chairman of Alvotech’s board from June
2022. He was previously the Chairman of Alvotech’s board, and as one of Alvotech’s directors since January 2019.
Since November 2018, he has served as Chief Executive Officer of Auregen Bio Therapeutics SA. Prior to joining
Auregen Bio Therapeutics, Mr. Davies served as Chief Executive Officer of Bonesupport AB between 2016 and
2018, as Senior Vice President and Chief Commercial Officer of Hospira Inc. between 2012 and 2015, and in
various leadership roles at Amgen Inc between 2003 and 2012. Mr. Davies holds an MBA from the University of
Warwick and Bachelor of Science in applied chemistry from the University of Portsmouth.
Tomas Ekman, Director, has served as one of Alvotech’s directors since January 2019. Since November 2014 he has
served as a partner at CVC Capital Partners where he is a member of the CVC Nordics team and is based in
Stockholm. Prior to joining CVC in 2014, Mr. Ekman was a partner and Managing Director at 3i, responsible for its
Nordic business. Mr. Ekman holds MSc degrees from the University of Strathclyde and Chalmers University of
Technology, and an MBA from IMD, Switzerland.
Faysal Kalmoua, Director, has served as one of Alvotech’s directors since June 2020. Mr. Kalmoua has also served
as a partner of the Aztiq group since June 2022. Between April 2020 and June 2022, Mr. Kalmoua served as
Executive Vice President of Portfolio, Business Development and Research and Development for Alvogen. Between
November 2015 and March 2020, Mr. Kalmoua served as Executive Vice President of Portfolio for Alvogen, Inc.
Prior to joining Alvogen, Mr. Kalmoua served in various management positions for Synthon for nearly 16 years. Mr.
Kalmoua holds a master’s degree in chemistry from the Radboud University Nijmegen and an executive MBA from
Insead.
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Ann Merchant, Director, has served as one of Alvotech’s directors since June 2022. Since 2018, she has served as
Vice President for MorphoSys, and as Head of Global Supply Chain since January 2019. Prior to joining
MorphoSys, from September 2011 to August 2018, Ms. Merchant served as the President for Schreiner Medipharm.
Between 1994 and 2011, Ms. Merchant held various roles at Amgen, including Vice President, Head of International
Supply Chain and Site Head between 2007 and 2011. Ms. Merchant holds an MBA from the Henley Business
School and a Bachelor of Science in Languages from Georgetown University. We believe Ms. Merchant is qualified
to serve on Alvotech’s board of directors because of her experience in executive positions with several
pharmaceutical companies and expertise in financial planning, new product launches and creating and executing
international strategies to increase market share.
Arni Hardarson, Director, has served as one of Alvotech’s directors since June 2022. Mr. Hardarson is a co-founder
and partner of the Aztiq group. Between 2009 and June 2022, he served as Deputy to the Chief Executive Officer
and General Counsel of Alvogen. Prior to joining Alvogen, Mr. Hardarson was Vice President of Tax and Structure
at Actavis, and as partner, member of the executive management committee, and served as a head of tax and legal at
Deloitte. Mr. Hardarson holds a Master’s degree in law from the University of Iceland. We believe Mr. Hardarson is
qualified to serve on Alvotech’s board of directors because of his extensive expertise in financial and legal matters
and his past experience in top executive positions.
Lisa Graver, Director, has served as one of Alvotech’s directors since June 2022. Ms. Graver has served in various
leadership positions for Alvogen since June 2010, including as President of Alvogen Inc, a subsidiary of Alvogen,
since August 2015, as Executive Vice President and Deputy to the Chief Executive Officer of Alvogen Inc. since
February 2013, and as Vice president Intellectual Property of Alvogen since June 2010. Prior to joining Alvogen,
Ms. Graver was Vice President Intellectual Property and Senior Director Intellectual Property at Actavis Inc.
between 2006 and 2008. Ms. Graver holds a BSc in Biology from Lakehead University and a law degree from the
Case Western Reserve University School of Law. We believe Ms. Graver is qualified to serve on Alvotech’s board
of directors because of her extensive expertise in intellectual property and the pharmaceutical industry.
Dr. Linda McGoldrick, Director, has served as one of Alvotech’s directors since June 2022 and as the Chairman of
the Audit Commitee. In 1985, Dr. McGoldrick founded, and currently serves as Chairman and Chief Executive
Officer of, Financial Health Associates International, a strategic consulting company specializing in healthcare and
life sciences. Since January 2020, she has served as the Chief Executive Officer for 2Enable Health LLC. Prior to
joining 2Enable Health LLC, Dr. McGoldrick served as interim CEO at Zillion between June 2019 and December
2019. Over her professional career, Dr. McGoldrick has served in a number of leadership roles, including Senior
Vice President and National Development Director for the Healthcare and Life Sciences Industry Practices at Marsh-
MMC Companies, International Operations and Marketing Director of Veos plc, and Managing Director Europe for
Kaiser Permanente International. In 2018, Dr. McGoldrick was appointed by the Governor of Massachusetts to serve
on the state’s Health Information Technology Commission. Dr. McGoldrick has served as a director of numerous
publicly traded and private held companies and non-profit organizations in the U.S., UK and Europe, including as
director for Compass Pathways since September 2020. In 2012, Dr. McGoldrick was named as one of the Top 100
Corporate Directors of Fortune 100 Companies by the Financial Times. Dr. McGoldrick holds a Master’s Degree in
Healthcare from the University of Pennsylvania and an MBA from Wharton. We believe Ms. McGoldrick is
qualified to serve on Alvotech’s board of directors because of her extensive expertise in financial matters and the
healthcare and life sciences industry.
Business ethics and Code of Conduct
Alvotech sets high standards for all employees and directors. We also adhere to ethical commitments in every aspect
of our business, with respect to our employees as well as outside stakeholders, including contractors, suppliers,
commercial partners, government authorities and the general public. These commitments are spelled out in our Code
of Corporate Conduct and Ethics, which applies to all our employees, including our senior executive, officers and
directors. We apply our Code of Conduct both in internal and external relations and give preference in our business
dealings to those who adhere to comparable ethical standards.
79
It is the duty of the Board of Directors to serve as fiduciary for shareholders and to oversee the management of the
company. To fulfill its responsibilities and to discharge its duties prudently, the Board of Directors follows the
procedures and standards that are set forth in guidelines and charters. These documents are subject to modification
from time to time as the Board of Directors deems appropriate in the best interests of Alvotech or as required by
applicable laws and regulations.
The Code of Conduct and charters for the Board of Directors are accessible on Alvotech’s website at https://
investors.alvotech.com/corporate-governance/documents-charters
Approved by the board on: 20 March 2024
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Non-financial disclosure
Business model
Alvotech was founded in 2013 to develop and manufacture biosimilars which have the potential to improve the life and
health of millions of patients globally. Our goal is to become the leading global biosimilar company in the development
and manufacture of cost-effective biologic medicines, increasing availability for all patients and lowering the cost of
healthcare.
Biologics and biosimilars are manufactured using living cells. Alvotech develops its medicines in mammalian cells
which have been specialized to produce a specific protein. The protein becomes the active ingredient in a biosimilar that
is designed to match the effectiveness and safety of a particular reference biologic. Biologic medicines have proven
especially effective in many therapeutic areas, such as oncology and immunology. Alvotech has launched two
biosimilars and is developing an addition 9 biosimilar candidates.
Alvotech’s headquarters and manufacturing facilities are located in the University of Iceland’s Science Park in
Reykjavik, Iceland. Alvotech has satellite offices in the U.S., Germany, India and Switzerland.
On average in 2023, Alvotech employed 1041 people, the majority with a master’s degree or doctorate. About 80% of
the workforce is in Iceland and 20% abroad.
Due diligence process regarding non-financial disclosures
Rules governing Alvotech’s quality assurance and certification processes
Alvotech adheres to Good Manufacturing Practice (GMP) standards, similar to other pharmaceutical manufacturing
companies that produce medications for human use. To ensure compliance with these standards, Alvotech has
established a comprehensive quality assurance framework covering manufacturing, surveillance, and distribution
activities. This framework is underpinned by an extensive array of documents, including numerous standard operating
procedures (SOPs) relevant to the manufacturing and quality control operations, validation of equipment and
instruments, maintenance of environmental systems and facilities, and meticulous document management, among
others. These documents are foundational to the quality assurance system, and by extension, the quality of the
pharmaceuticals produced. Additionally, pharmaceutical firms operating according to GMP must welcome regular
evaluations by both local and international health regulatory bodies that oversee the pharmaceutical sector, including
authorities from jurisdictions where the products are marketed.
Alvotech’s quality assurance mechanisms received initial certification in 2018, authorizing clinical trial medicine
production, followed by a subsequent certification in September 2020 for the manufacture of commercial products.
Beyond this, Alvotech has undergone audits by various pharmaceutical partners in light of its international marketing
agreements for biosimilars and undergoes routine inspections by medical regulatory authorities in regions and countries
where its biosimilars are marketed or pending market approval.
Alvotech’s principal divisions operate under an ISO 9001 certified quality management system, extending to several
non-financial aspects such as environmental management, with the British Standards Institution (BSI) validating
adherence to these standards. The company’s compliance officer is tasked with ensuring adherence to the business Code
of Conduct, including conducting annual employee training on these topics. The Environmental, Health and Safety
committee is dedicated to ensuring compliance with Icelandic law nr. 46/1980, while the executive management and
board of directors oversee adherence to all relevant regulations, internal procedures, and ethical guidelines.
Alvotech has also evaluated its adherence to its policies, encompassing environmental, social, and governance
considerations, in alignment with section 66.d of the Icelandic Financial Statement Act No. 3/2006. This evaluation
sheds light on the company’s performance against various international norms and guidelines, offering a comprehensive
insight into Alvotech’s operational practices. This analysis aids the management in directing efforts towards enhancing
risk mitigation and minimizing negative environmental impacts. On July 31, 2023, the European Commission adopted
the European Sustainability Reporting Standards (“ESRS”), the first set of corporate sustainability reporting standards
under the EU Corporate Sustainability Reporting Directive (CSRD). The CSRD entered into force in January 2023 and
went into effect on January 1, 2024. For the fiscal year 2024 and going forward, companies subject to CSRD are
required to issue annual sustainability statement according to the ESRS.
Alvotech Non-Financial Disclosures 2023
81
Data on Environmental, Social and Governance metrics
Our reporting framework is based on Nasdaq’s ESG Reporting Guide, which was first launched in 2017 and updated in
2019. The first version of the guide was specifically addressed to companies operating in markets such as the Nordic
countries where investor expectations regarding Environmental, Social and Governance (ESG) performance are clearer
and regulatory actions were taken early on. The advantage of the Nasdaq ESG framework is clarity and simplicity,
while it also incorporates developments from other standards such as GRI, UN SDGs etc. We believe that this
framework has provided transparency and represents a balanced approach to ESG reporting, but continue to evaluate
our methodologies according to a changing regulatory environment , including the implementation of the EU Taxonomy
regulation, which has taken effect in Luxembourg and Iceland and applies to 2023 reporting. Companies incorporated in
Luxembourg are obligated to report EU Taxonomy information as part of their Non-Financial Reporting (NFR). This
information can be included in the management report, as part of the Annual Report that also includes the financial
statements, or in a separate report published, such as a sustainability report on the company website, no later than 6
months after the balance sheet date
Environment
We are committed to understanding and mitigating our impact on the natural environment. From our home-base and
manufacturing hub in Reykjavik, Iceland, we can leverage the country’s abundant renewable natural resources,
including clean water and renewable hydro- and geothermal energy that power a dedicated grid supplying local industry
and homes. The use of renewable resources allows us to balance the growth of our operations and prosperity of our
stakeholders, with the overarching objective of sustainability.
As a global company, we believe that our impact on the environment correlates strongly with our long-term success and
value as an enterprise. We are committed to minimizing the impact we have on natural resources and climate change
and recognize that this commitment starts with understanding our contribution through our energy use and CO2
emissions and continues with our dedication to mitigate the energy intensity and emissions intensity of our operations.
We focus on protecting the environment from any adverse impact from our operations. We reach these goals by
reducing waste, using energy more efficiently, increasing reuse, recycling as much waste as possible and reducing the
use of all raw materials and consumables. We also handle genetically modified cells, biological and chemical waste
safely, to reduce the risk of contamination or environmental damage.
It has been demonstrated that monoclonal antibody production in single-use technology reduces overall environmental
impact when compared to more traditional durable process technology. However, single-use technology does create a
material waste stream from single-use plastics, which is not present in traditional stainless-steel processes. A key part of
maturing our sustainability program is focused on understanding and mitigating the impact of single-use plastics on the
natural environment.
Alvotech has appointed an Environmental, Health and Safety (EHS) committee with volunteers from its staff. The
committee works closely with the company’s safety committee. Each committee focuses on improving processes that
have an impact on the environment or employee safety. From an environmental perspective, particular emphasis is on
sorting waste and reducing the use of raw materials while increasing awareness of how our operation and processes
impact these metrics.
Staff is also encouraged to commute to work by bike, walking or on public transport. To further incentivize this
behavior, Alvotech offers transportation grants and facilities for those that walk or bike to work.
Scope 1, 2 and 3 emissions
We can measure Scope 1 and Scope 2 emissions for our facilities in Iceland, including the main manufacturing facility,
based on invoices or direct metering. For facilities outside of Iceland we rely on indirect measures, based on headcount,
facility size and regional emission factors, to estimate this. We have also begun to track some Scope 3 emissions related
to activity under our own control, such as business travel, but are not able at this point to quantify all the emissions that
fall under Scope 3.
Alvotech Non-Financial Disclosures 2023
82
Keyenvironmentalperformanceindicators
GHGEmissionsandEmissionsIntensity Unit 2020 2021 2022 2023
Scope1&2emissions tCO2eq. 218 219 235 229
Scope1,2&3emissions tCO2eq. 479 513 957 923
Scope1emissions tCO2eq. 16 12 19 20
Scope1emissionsfromfueluse
tCO2eq. 2 12 12 15
Scope1emissionsfromrefrigerants
tCO2eq. 14 0 6 5
Scope2emissions tCO2eq. 202 206 217 209
Scope2emissionsfromelectricityuse
tCO2eq. 177 181 192 184
Scope2emissionsfromthermalenergyuse
tCO2eq. 25 25 25 25
Scope3emissions tCO2eq. 261 294 721 555
Scope3emissionsfromflights
tCO2eq. 192 207 573 379
Scope3emissionsfromwaste
tCO2eq. 69 85 145 174
Scope3emissionsfromfuelandenergyuse
tCO2eq. 0.5 3.2 3.2 3.9
Scope1&2emissionsintensityperemployee tCO2eq./emp. 0.4 0.3 0.3 0.2
Scope1,2&3emissionsintensityperemployee tCO2eq./emp. 0.9 0.8 1.1 0.8
Nasdaq:E1,E2|GRI:305-1,305-2,305-3,305-4
EnergyUsage,EnergyIntensityandEnergyMix Unit 2020 2021 2022 2023
Totaluseofenergy MWh 8,438 8,190 11,326 12,505
Totaluseofelectricity MWh 4,663 4,776 5,758 6,184
Totaluseofthermalenergy(heat) MWh 3,768 3,369 5,386 6,266
Totaluseoffuel
MWh 7 45 46 55
Totaluseofenergyperemployee
MWh 16 13 13 12
Percentageoftotalenergyfromrenewables
% 94% 93% 94% 95%
Nasdaq:E3,E4,E5|GRI:302-1,302-2,302-3
WaterUsage Unit 2020 2021 2022 2023
Totalwaterusage m3 48,294 40,119 60,630 97,194
Nasdaq:E6|GRI:303-5
EnvironmentalOperations Unit 2020 2021 2022 2023
Environmentalpolicyinplace Yes/No Yes Yes Yes Yes
Totalamountofnon-hazardouswaste tons 97 116 190 235
Totalamountofhazardouswaste tons 42 52 92 114
Nasdaq:E7|GRI:103-2
Social factors
One of the most valuable assets for any company is undoubtedly the experience and knowledge obtained by its
employees. Alvotech therefore focuses on employee satisfaction and a strong sense of company culture. Alvotech is
committed to ensuring the health, safety and well-being of its staff and guests of the company.
Alvotech Non-Financial Disclosures 2023
83
Health and wellbeing
A strong emphasis on training is part of Alvotech’s focus on the staff’s health and well-being. We collect and
disseminate monthly key indicators about our performance in this area. These include statistics on incidents, accidents,
near-accidents, potentially dangerous situations, and risk assessments. We also monitor our impact on the environment
and potentially our behaviors by collecting statistics about waste, effluents, water, and energy consumption.
By implementing a reporting system for accidents, near accidents and potentially dangerous events, Alvotech
implements risk prevention measures and creates a safety culture among employees. Employees also receive
information about the origin of these reports, by department. This creates a sense of duty by employees to show that
their department is contributing to the safety culture. Since 2020 the frequency of injury events has slowly been rising,
mainly due to increased awareness by employees of the importance of reporting such incidents to support a risk
prevention culture.
We have performed detailed risk assessment for each role at Alvotech, which includes a definition of the main sources
of risks in regular tasks and preventive measures.
Because of the large number of foreign employees that have migrated to Iceland to work at Alvotech, the company also
offers special assistance to ex-pats. This includes offering housing in apartments leased by the company for the first
months in Iceland, to help employees better adapt to the new environment and integrate into society.
Other initiatives to improve the workplace environment include support for training and continuing education, a system
for shift workers which enhances work-life balance, paid visits to psychiatrist and an online service, which offers
counseling for work- and family related matters free of charge. Alvotech regularly offers instructional seminars about
health and well-being, which have been very popular with employees. Staff is also offered semi-annual subsidies for
sports activities, including health-club memberships or grants to cover the cost of sports-equipment.
Equality
Alvotech’s gender equality policy was approved and presented to employees in January 2021, with an associated action
plan. The goal of this policy is to guarantee that all employees face the same opportunities regardless of gender, age,
religion, nationality, race, disability, sexual orientation, or political views and to avoid any discrimination or harassment
based on these or other issues unrelated to the quality of work. The policy is implemented to ensure that all employees
are evaluated based on their own merit and that they can reach their potential based on skill and ability. The policy
should also eliminate ingrained gender bias from the workplace. Furthermore, the policy should lead to more equal
ratios of the genders for employees holding each type of position or within departments. Alvotech’s equality policy also
states that an equality report should be issued each year and made available no later than April based on data for the
previous year.
Equal pay certification
The first equal pay certification audit for Alvotech was conducted in January 2021, by ICert, a domestic accredited
certification body which carries out audits and certification of management systems. In February 2021 Alvotech was
awarded an equal pay certification and subsequently given permission to use the equal pay insignia by the Icelandic
Equal Rights Administration and the Ministry of Welfare. A new equal pay certification audit was performed in January
2024 and in March 2024 our equal pay certification was renewed. In addition to employees in Iceland, we also
implement the same equal pay and equal opportunities policy globally for all our staff.
Job satisfaction and well-being
In November 2021 Alvotech started performing periodic comprehensive surveys of employees with respect to job
satisfaction and how employees view the company, measuring for example indicators of stress, undue work pressures or
employee harassment. The results of employee surveys have been used to identify areas for improvement and
implement policies to address issues highlighted by the survey results. The last job satisfaction survey was conducted in
late 2022. A new job satisfaction survey is currently pending.
Anti-harassment policy
Alvotech enforces a strict policy with respect to bullying and harassment in the workplace. The policy states that any
type of bullying, harassment or improper behavior is not condoned and defines a clear policy for dealing with such
incidents. Employees responsible for responding to such incidents have been assigned and trained to accept complaints
or conduct interviews with the parties involved. All managers are also trained in responding to such incidents.
Alvotech Non-Financial Disclosures 2023
84
Alvotech offers free consulting services from the occupational health service Vinnuvernd, where employees can meet
with a specialist, discuss their experience, and get confidential advice on next steps. The purpose of this policy is to
ensure that all reports about bullying, or harassment incidents are dealt with properly and promptly.
Human rights and child labor policies
We have implemented a comprehensive human rights and child labor policy which applies to all Alvotech employees.
We expect to broaden the scope of these policies to our vendors as our manufacturing operations scale.
Keysocialperformanceindicators
Social Unit 2020 2021 2022 2023
Ratioofpayofmentowomen % [*] 120% 117% 115%
Growthoftotalheadcount % 7% 12% 40% 9%
Womeninmanagement(ratiotototalheadcount) % 27% 31% 31% 35%
Womeninthecompanyexcludingmanagement(ratiotototal
headcount)
% 53% 49% 58% 51%
Ratiooftemporaryworkerstototalheadcount % 7% 5% 4% 4%
Existenceofasexualharassmentand/ornon-discriminationpolicy? Y/N Yes Yes Yes Yes
Frequencyofinjuryeventsrelativetototalworkforce(TIR) TIR 0.63 0.24 0.87 1.64
Existenceofanoccupationalhealthand/orglobalhealth&safety
policy?
Y/N Yes Yes Yes Yes
Doesyourcompanyfollowachildand/orforcedlaborpolicy? Y/N No No No Yes
Ifyes,doesthepolicycoversuppliersandvendors?
Y/N No
Doesyourcompanyfollowahumanrightspolicy? Y/N No No No Yes
Ifyes,doesthepolicycoversuppliersandvendors?
Y/N No
Surveyofemployeesregardingjobsatisfaction 0-10 7.0 7.2 7.0
[**]
Surveyofemployeesregardingjobcommitment 0-10 8.7 8.6 8.6 [**]
Participationrateinjobsatisfactionandcommitmentsurvey % 50% 78% 89% [**]
Numberofnewhires 171 306 345 261
Newhiresaspercentageoftotalworkforceofthecompanyatyear
end
% 29% 42% 35% 24%
Numberofdataprivacybreaches 0 0 0 0
Nasdaq:S2,S3,S4,S5,S6,S7,S8,S9,S10|GRI:405-1,406,102-8,103-2,401-1,401-1b,403-9,405-1,405-2,418-1
[*]Dataforthisyearnotavailable[**]Surveywillbeconductedafterpublicationofthisdisclosurereport.
Governance
Human rights and business ethics
Alvotech conducts its business in a responsible and ethical fashion. Any type of corruption, bribery or violation of
human rights is not condoned. To prevent such conduct from taking place the company has implemented a Code of
Conduct which applies to the company’s entire business, including relationships with suppliers, partners, and
contractors. The core principle is that Alvotech and its employees always act ethically and honestly in any given
circumstance. The Code of Conduct addresses the companies Ethics and Anti-Corruption Policy as well as
Whistleblower Policy. The Code of Conduct and a formal certification by the employee of compliance to the code is a
part of on-boarding and training.
Alvotech Non-Financial Disclosures 2023
85
Data protection policy
Alvotech has implemented a data protection policy based on the EU General Data Protection Regulation which has also
been transposed into Icelandic law, which applies to all employees, associates, contractors, participants in clinical
studies and users of the company’s products. Alvotech follows all applicable standards and laws regarding personal
privacy and data protection, including specific rules and regulations applying to clinical studies as well as any other
rules which apply to our daily business.
Keygovernanceperformanceindicators
CorporateGovernance Unit 2020 2021 2022 2023
Percentageoftotalheadcountcoveredbycollectivebargainingagreement % 77% 76% 75% 75%
DoesyourcompanyfollowanEthicsand/orAnti-Corruptionpolicy? Y/N Yes Yes Yes Yes
Ifyes,whatpercentageofyourworkforcehascertifieditscompliance?
%
[*]
84% 86% 86%
DoesyourcompanyfollowaDataPrivacypolicy? Y/N Yes Yes Yes Yes
HasyourcompanytakenstepstocomplywithGDPRrules? Y/N Yes Yes Yes Yes
Areyoursustainabilitydisclosuresassuredorvalidatedbyathirdparty? Y/N No No No No
DoesyourcompanyhaveaWhistleblowerPolicyinplace? Y/N Yes Yes Yes Yes
Ifyes,whatpercentageofyourworkforcehascertifieditscompliance?
%
[*]
84% 86% 86%
Nasdaq:G4,G6,G7,G8|GRI:102-16,102-41,102-56,103-2,4189
[*]Dataforthisyearnotavailable
Alvotech Non-Financial Disclosures 2023
86