On Thursday, Alvotech (NASDAQ:ALVO) announced the acquisition of R&D operations of Xbrane Biopharma AB along with a biosimilar candidate, XB003, which is based on Cimzia (certolizumab pegol) for around SEK275 million (around $27 million).

The transaction includes a cash payment of SEK102.2 million at closing, along with the assumption of SEK172.8 million in debt and accounts payable.

The creditors have agreed to receive Alvotech equity shares as payment for SEK152.8 million of the debt.

This acquisition enhances Alvotech’s development capabilities and marks its expansion into Sweden’s life sciences sector.

The deal includes Xbrane’s research facilities at Campus Solna near the Karolinska Institute in Stockholm, while Xbrane will retain its other preclinical assets and concentrate on commercialization.

Alvotech is also exploring the possibility of listing Swedish Depository Receipts (SDRs) on Nasdaq Stockholm in the future.

The deal is expected to close in April 2025, subject to approval from relevant regulatory authorities and Xbrane’s shareholders.

Robert Wessman, founder, Chairman and CEO of Alvotech said,” “Furthermore, we will establish a strong presence for Alvotech in the Swedish life science sector, which rivals the U.S. in this field. It will allow Alvotech to attract new talent, create opportunities for scientific collaboration, and support our growth. This is yet another milestone for Alvotech in establishing us as a leader in biosimilars development and production globally.”

Martin Ã…mark, CEO of Xbrane stated, “With this transaction Xbrane is significantly strengthening its financial position and retains over 75% of the competitively adjusted addressable market of the portfolio including Ximluci (Lucentis biosimilar candidate) currently being approved and sold in Europe as well as Xdivane (Opdivo biosimilar candidate), recently partnered with Intas.”

“Xbrane will, with a more lean and flexible organization after the transaction, be better equipped to fully focus on realizing the full value of Ximluci and Xdivane with the ambition to generate meaningful royalties/profit sharing from these programs in the years to come.”

Price Action: ALVO shares closed at $11.34 on Wednesday.

Read Next:

• Analyst Takes A Cautious View On Lennar Ahead Of Q1 Earnings – Here’s Why

Photo via Shutterstock.