Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Entity Registrant Name | ALVOTECH |
Entity Central Index Key | 0001898416 |
Entity File Number | 001-41421 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Incorporation, State or Country Code | N4 |
Entity Address, Address Line One | 9 |
Entity Address, Address Line Two | Rue de Bitbourg |
Entity Address, City or Town | Luxembourg |
Entity Address, Postal Zip Code | 1273 |
Entity Address, Country | LU |
Entity Common Stock, Shares Outstanding | 248,649,506 |
Document Accounting Standard | International Financial Reporting Standards |
ICFR Auditor Attestation Flag | false |
Auditor Name | Deloitte ehf. |
Auditor Firm ID | 1490 |
Auditor Location | Kópavogur, Iceland |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Robert Wessman |
Entity Address, Address Line One | Sæmundargata 15-19 |
Entity Address, City or Town | Reykjavík |
Entity Address, Postal Zip Code | 102 |
Entity Address, Country | IS |
City Area Code | 354 |
Local Phone Number | 422 4500 |
Ordinary shares [member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Ordinary Shares |
Trading Symbol | ALVO |
Security Exchange Name | NASDAQ |
Warrants [member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Warrants |
Trading Symbol | ALVOW |
Security Exchange Name | NASDAQ |
Consolidated Statements of Prof
Consolidated Statements of Profit or Loss and Other Comprehensive Income or Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Product revenue | $ 24,836 | ||
License and other revenue | 58,193 | $ 36,772 | $ 66,616 |
Other income | 1,988 | 2,912 | 2,833 |
Cost of product revenue | (64,095) | ||
Research and development expenses | (180,622) | (191,006) | (148,072) |
General and administrative expenses | (186,742) | (84,134) | (58,914) |
Operating loss | (346,442) | (235,456) | (137,537) |
Share of net loss of joint venture | (2,590) | (2,418) | (1,505) |
Finance income | 2,549 | 51,568 | 5,608 |
Finance costs | (188,419) | (117,361) | (161,551) |
Exchange rate differences | 10,566 | 2,681 | 3,215 |
(Loss) / gain on extinguishment of financial liabilities | (27,311) | 151,788 | |
Non-operating (loss) / profit | (205,205) | 86,258 | (154,233) |
Loss before taxes | (551,647) | (149,198) | (291,770) |
Income tax benefit | 38,067 | 47,694 | 121,726 |
Loss for the year | (513,580) | (101,504) | (170,044) |
Item that will be reclassified to profit or loss in subsequent periods: | |||
Exchange rate differences on translation of foreign operations | (6,111) | (305) | 5,954 |
Total comprehensive loss | $ (519,691) | $ (101,809) | $ (164,090) |
Loss per share | |||
Basic loss for the year per share | $ (2.6) | $ (0.92) | $ (1.82) |
Diluted loss for the year per share | $ (2.6) | $ (0.92) | $ (1.82) |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Non-current assets | ||
Property, plant and equipment | $ 220,594 | $ 78,530 |
Right-of-use assets | 47,501 | 126,801 |
Goodwill | 11,643 | 12,367 |
Other intangible assets | 25,652 | 21,509 |
Contract assets | 3,286 | 1,479 |
Investment in joint venture | 48,568 | 55,307 |
Other long-term assets | 5,780 | 1,663 |
Restricted cash | 25,187 | 10,087 |
Deferred tax assets | 209,496 | 170,418 |
Total non-current assets | 597,707 | 478,161 |
Current assets | ||
Inventories | 71,470 | 39,058 |
Trade receivables | 32,972 | 29,396 |
Contract assets | 25,370 | 17,959 |
Other current assets | 32,949 | 14,736 |
Receivables from related parties | 1,548 | 1,111 |
Cash and cash equivalents | 66,427 | 17,556 |
Total current assets | 230,736 | 119,816 |
Total assets | 828,443 | 597,977 |
Equity | ||
Share capital | 2,126 | 135 |
Share premium | 1,058,432 | 1,000,118 |
Other reserves | 30,582 | |
Translation reserve | (1,442) | 4,669 |
Accumulated deficit | (1,654,114) | (1,140,534) |
Total equity | (564,416) | (135,612) |
Non-current liabilities | ||
Borrowings | 744,654 | 398,140 |
Derivative financial liabilities | 380,232 | |
Other long-term liability to related party | 7,440 | 7,440 |
Lease liabilities | 35,369 | 114,845 |
Long-term incentive plan | 544 | 56,334 |
Contract liabilities | 57,017 | 44,844 |
Deferred tax liability | 309 | 150 |
Total non-current liabilities | 1,225,565 | 621,753 |
Current liabilities | ||
Trade and other payables | 49,188 | 28,587 |
Lease liabilities | 5,163 | 7,295 |
Current maturities of borrowings | 19,916 | 2,771 |
Liabilities to related parties | 1,131 | 638 |
Contract liabilities | 36,915 | 29,692 |
Taxes payable | 934 | 841 |
Other current liabilities | 54,047 | 42,012 |
Total current liabilities | 167,294 | 111,836 |
Total liabilities | 1,392,859 | 733,589 |
Total equity and liabilities | $ 828,443 | $ 597,977 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Loss for the year | $ (513,580) | $ (101,504) | $ (170,044) |
Adjustments for non-cash items: | |||
Gain on extinguishment of SARs liability | (4,803) | ||
Share-listing expense | 83,411 | ||
Long-term incentive plan expense | 5,492 | 17,955 | 18,053 |
Depreciation and amortization | 20,409 | 18,196 | 16,419 |
Impairment of property, plant and equipment | 2,092 | 2,142 | |
Impairment of other intangible assets | 2,755 | 3,993 | |
Share of net loss of joint venture | 2,590 | 2,418 | 1,505 |
Finance income | (2,549) | (51,568) | (5,608) |
Finance costs | 188,419 | 117,361 | 161,551 |
Loss/(Gain) on extinguishment of financial liabilities | 27,311 | (151,788) | |
Share-based payments | 10,317 | ||
Exchange rate difference | (10,566) | (2,681) | (3,215) |
Income tax benefit | (38,067) | (47,694) | (121,726) |
Operating cash flow before movement in working capital | (228,861) | (193,220) | (100,923) |
Increase in inventories | (32,412) | (29,412) | (3,255) |
(Increase) / decrease in trade receivables | (3,576) | (28,813) | 21,771 |
Increase / (decrease) in liabilities with related parties | 56 | (453) | 1,674 |
(Increase) / decrease in contract assets | (9,218) | 15,286 | (11,667) |
Increase in other assets | (17,194) | (4,363) | (7,383) |
Increase in trade and other payables | 16,442 | 14,318 | 227 |
Increase in contract liabilities | 19,396 | 21,470 | 24,019 |
(Decrease) / increase in other liabilities | (21,384) | 5,160 | 7,134 |
Cash used in operations | (276,751) | (200,027) | (68,403) |
Interest received | 568 | 16 | 212 |
Interest paid | (35,372) | (28,004) | (5,664) |
Income tax paid | (834) | (155) | (440) |
Net cash used in operating activities | (312,389) | (228,170) | (74,295) |
Cash flows from investing activities | |||
Acquisition of property, plant and equipment | (37,880) | (20,462) | (7,485) |
Disposal of property, plant and equipment | 379 | 79 | |
Acquisition of intangible assets | (11,122) | (20,171) | (4,497) |
Restricted cash in connection with amended bond agreement | (14,914) | (5,000) | |
Net cash used in investing activities | (63,537) | (40,633) | (16,903) |
Cash flows from financing activities | |||
Repayments of borrowings | (34,714) | (37,496) | (2,896) |
Repayments of principal portion of lease liabilities | (11,147) | (7,350) | (6,087) |
Proceeds from new borrowings | 193,678 | 113,821 | 30,000 |
Proceeds on issue of equity shares | 9,800 | 185,856 | 34,385 |
Recognition of deferred debt issue costs | (12,102) | ||
Gross proceeds from the PIPE Financing | 174,930 | ||
Gross PIPE Financing fees paid | (5,562) | ||
Proceeds from the Capital Reorganization | 9,827 | ||
Proceeds from loans from related parties | 160,000 | ||
Repayment of loans from related parties | (50,000) | ||
Net cash generated from financing activities | 424,910 | 254,831 | 55,402 |
Increase / (decrease) in cash and cash equivalents | 48,984 | (13,972) | (35,796) |
Cash and cash equivalents at the beginning of the year | 17,556 | 31,689 | 67,403 |
Effect of movements in exchange rates on cash held | (113) | (161) | 82 |
Cash and cash equivalents at the end of the year | $ 66,427 | $ 17,556 | $ 31,689 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Share capital [member] | Share premium [member] | Other reserves [member] | Translation reserve [member] | Accumulated deficit [member] |
Beginning Balance at Dec. 31, 2019 | $ (767,538) | $ 69 | $ 102,359 | $ (980) | $ (868,986) | |
Loss for the year | (170,044) | (170,044) | ||||
Foreign currency translation differences | 5,954 | 5,954 | ||||
Total comprehensive loss | (164,090) | 5,954 | (170,044) | |||
Increase in share capital | 64,385 | 4 | 64,381 | |||
Ending Balance at Dec. 31, 2020 | (867,243) | 73 | 166,740 | 4,974 | (1,039,030) | |
Loss for the year | (101,504) | (101,504) | ||||
Foreign currency translation differences | (305) | (305) | ||||
Total comprehensive loss | (101,809) | (305) | (101,504) | |||
Increase in share capital | 833,440 | 62 | 833,378 | |||
Ending Balance at Dec. 31, 2021 | (135,612) | 135 | 1,000,118 | 4,669 | (1,140,534) | |
Loss for the year | (513,580) | (513,580) | ||||
Foreign currency translation differences | (6,111) | (6,111) | ||||
Total comprehensive loss | (519,691) | (6,111) | (513,580) | |||
PIPE Financing | 169,368 | 175 | 169,193 | |||
Settlement of SARs with shares | 30,302 | 35 | 30,267 | |||
Capital Reorganization | (171,565) | 1,731 | (173,296) | |||
Settlement of related party loans with Ordinary Shares | 32,200 | 50 | 32,150 | |||
Recognition of share-based payments | 14,548 | $ 14,548 | ||||
Recognition of equity component of convertible bonds | 16,034 | 16,034 | ||||
Ending Balance at Dec. 31, 2022 | $ (564,416) | $ 2,126 | $ 1,058,432 | $ 30,582 | $ (1,442) | $ (1,654,114) |
General information
General information | 12 Months Ended |
Dec. 31, 2022 | |
General information about financial statements [Abstract] | |
General information | 1. General information Alvotech (the “Parent” or the “Company” or “Alvotech”), previously known as Alvotech Lux Holdings S.A.S., the surviving company after the Business Combination (as defined below) with, among other parties, Alvotech Holdings S.A. (the “Predecessor”), is a Luxembourg public limited company (société anonyme) incorporated and existing under the laws of the Grand Duchy of Luxembourg, having its registered office at 9, rue de Bitbourg, L-1273 on 1 March 2023. The Company and its subsidiaries (collectively referred to as the “Group”) are a global biotech company specialized in the development and manufacture of biosimilar medicines for patients worldwide. The Group has commercialized a certain biosimilar product and has multiple biosimilar molecules. 1.1 Capital Reorganization On 15 June 2022 (the “Closing Date”), the Company consummated the capital reorganization with Alvotech Holdings S.A. and OACB (the “Business Combination” or “Capital Reorganization”) pursuant to the business combination agreement, dated as of 7 December 2021, as amended by an amendment agreement dated 18 April 2022 and 7 June 2022 (the “Business Combination Agreement”), by and among the Company, Oaktree Acquisition Corp. II (“OACB”) and the Predecessor. The closing of the Business Combination resulted in the following transactions: • OACB merged with and into the Company, whereby (i) all of the outstanding ordinary shares of OACB (“OACB Ordinary Shares”) were exchanged for ordinary shares of Alvotech (“Ordinary Shares”) on a one-for-one • Alvotech redeemed and canceled the initial shares held by the initial sole shareholder of Alvotech pursuant to a share capital reduction of Alvotech; • The legal form of Alvotech changed from a simplified joint stock company (société par actions simplifiée) to a public limited liability company (société anonyme) under Luxembourg law; and • The Predecessor merged with and into the Parent, whereby all outstanding ordinary shares of the Predecessor (“Predecessor Ordinary Shares”) were exchanged for Ordinary Shares, pursuant to a share capital increase of Alvotech, with Alvotech as the surviving company in the merger. Concurrently with the execution of the Business Combination Agreement, OACB and Alvotech entered into subscription agreements (“Subscription Agreements”) with certain investors (the “PIPE Financing”). On 15 June 2022, immediately prior to the closing of the Business Combination, the PIPE Financing was closed, pursuant to the Subscription Agreements, in which subscribers collectively subscribed for 17,493,000 Ordinary Shares at $10.00 per share for an aggregate subscription price equal to $174.9 million. As part of the Business Combination, Predecessor shareholders were granted a total of 38,330,000 Ordinary Shares subject to certain vesting conditions (“Predecessor Earn Out Shares”). Former OACB shareholders were granted a total of 1,250,000 Ordinary Shares subject to certain vesting conditions (“OACB Earn Out Shares”). Additionally, as part of the Business Combination the Company assumed the 10,916,647 outstanding warrants (“OACB Warrants”), on substantially the same contractual terms and conditions as were in effect immediately prior to the Business Combination. See Note 27 for further details. The Business Combination was accounted for as a capital reorganization. Under this method of accounting, OACB was treated as the “acquired” company for financial reporting purposes, with Alvotech Holdings S.A. being the accounting acquirer and accounting predecessor. Accordingly, the capital reorganization was treated as the equivalent of Alvotech issuing shares at the closing of the Business Combination for the net assets of OACB as of the Closing Date, accompanied by a recapitalization. The capital reorganization, which was not within the scope of IFRS 3 since OACB did not meet the definition of a business in accordance with that guidance, was accounted for within the scope of IFRS 2. In accordance with IFRS 2, Alvotech recorded a one-time non-cash Shares (in 000s) OACB Shareholders Class A Shareholders 976,505 Class B Shareholders 5,000,000 OACB Earn Out Shares 1,250,000 Total Alvotech Shares issued to OACB shareholders 7,226,505 Fair value of Shares issued to OACB as of 15 June 2022 $ 56,060 Fair value of OACB Earn Out Shares issued to OACB as of 15 June 2022 9,100 Estimated fair market value 65,160 Adjusted net liabilities of OACB as of 15 June 2022 (18,251 ) Difference – being the share listing expense 83,411 In connection with the Business Combination and PIPE Financing, the Company incurred $28.5 million of transaction costs, which represent legal, financial advisory, and other professional fees in connection with the Business Combination and PIPE Financing, during the year ended 31 December 2022. Of this amount, $5.6 million represented equity issuance costs related to PIPE Financing that were capitalized in share premium. The remaining $22.9 million was recognized as general and administrative expense. 1.2 Information about subsidiaries and joint ventures Entity name Principal Issued and (presented in Place of Proportion of ownership 31.12.2022 31.12.2021 Alvotech hf Biopharm. 3,885,102 Iceland 100.00 % 100.00 % Alvotech Germany GmbH Biopharm. 31,182 Germany 100.00 % 100.00 % Alvotech Swiss AG Biopharm. 153,930 Switzerland 100.00 % 100.00 % Alvotech Hannover GmbH Biopharm. 29,983 Germany 100.00 % 100.00 % Alvotech Malta Ltd Group Serv. 80,450 Malta 100.00 % 100.00 % Alvotech USA Inc Biopharm. 10 USA 100.00 % 100.00 % Alvotech UK Ltd Group Serv. 135 UK 100.00 % 100.00 % Alvotech Manco ehf Group Serv. 203,046 Iceland 100.00 % — Alvotech Biosciences India Private Ltd Biopharm 96,113 India 100.00 % — Fasteignafelagið Sæmundur hf Real estate 12,965,337 Iceland 100.00 % — Alvotech & CCHN Biopharmaceutical Co. Ltd* Biopharm. 110,000,021 China 50.00 % 50.00 % * Alvotech & CCHN Biopharmaceutical Co. Ltd. is an unconsolidated joint venture (see Note 26). 1.3 Information about shareholders Significant shareholders of the Company are Aztiq Pharma Partners S.à r.l. (Aztiq) and Alvogen Lux Holdings S.à r.l. (Alvogen), with 40.7% and 35.8% ownership interest as of 31 December 2022, respectively. The remaining 23.5% ownership interest is held by various entities, with no single shareholder holding more than 2.4% ownership interest as of 31 December 2022. Aztiq and Alvogen held 45.1% and 39.5% ownership interest as of 31 December 2021, respectively. The remaining 15.4% ownership interest was held by various entities, with no single shareholder holding more than 2.4% ownership interest as of 31 December 2021. 1.4 Impact of COVID-19, With the ongoing COVID-19 COVID-19 In February 2022, Russia began a military invasion of Ukraine. The global response to this invasion could have an adverse impact on the Group’s business, including the effects of relocating clinical trials and the Group’s ability to market and sell products in Europe, by creating disruptions in global supply chain, and potentially having an adverse impact on the global economy, European economy, financial markets, energy markets, currency rates, and otherwise. Currently, the conflict has not had a material impact on the Group’s financial condition, results of operations, the timelines for biosimilar product development, expansion efforts or the Group’s operations as a whole. The Company believes that inflation will have a general impact on the business in line with overall price increases, increases in the cost of borrowing, and operating in an inflationary economy. We cannot predict the timing, strength, or duration of any inflationary period or economic slowdown or its ultimate impact on the Company. If the conditions in the general economy significantly deviate from present levels and continue to deteriorate it could have a material adverse effect on the Group’s business, financial condition, results of operations and growth prospects. 1.5 Going concern The Group has primarily funded its operations with proceeds from the issuance of ordinary shares and the issuance of loans and borrowings to both related parties and third parties. The Group has also incurred recurring losses since its inception, including net losses of $513.6 million, $101.5 million and $170.0 million for the years ended 31 December 2022, 2021, and 2020, respectively, and had an accumulated deficit of $1,654.1 million as of 31 December 2022. The Group has not generated positive operational cash flow, largely due to the continued focus on biosimilar product development and expansion efforts. As of 31 December 2022, the Group had cash and cash equivalents, excluding restricted cash, of $66.4 million and current assets less current liabilities of $63.4 million. In February and March 2022, Alvotech received $25.0 million from each of Alvogen and Aztiq pursuant to interest free loan advances provided by both significant shareholders, who agreed to settle these outstanding amounts in Ordinary Shares rather than cash in July 2022. The closing of the Business Combination and the PIPE Financing provided the Group with net proceeds of $131.9 million that is expected to be used to finance the continuing development and commercialization of its biosimilar products. Additionally, during the year ended 31 December 2022 the Company received $110.0 million in loans from Alvogen, successfully amended and upsized the outstanding Senior Bonds resulting in $57.9 million of net cash proceeds, along with net cash proceeds of $73.4 million from the issuance of the Tranche A and Tranche B Convertible Bonds and Facility Loans, of which $50.0 million was used to repay amounts drawn under the Alvogen Facility. On 25 January 2023, the Company issued an additional $10.0 million in Tranche B Convertible Bonds. Holders of the Tranche B Convertible Bonds may elect, at their sole discretion, to convert all or part of the principal amount and accrued interest into Alvotech Ordinary Shares at a conversion price of $10.00 per share on December 31, 2023, or June 30, 2024. See Note 29 for further details. On 10 February 2023, Alvotech completed a , at the then-prevailing exchange rates, of its Ordinary Shares at a purchase price of $ per Ordinary Share , resulting in proceeds of $ 137.0 See Note 29 for further details. Additionally, the Group expects to continue to source its financing during the development of its biosimilar products from new and existing out-license As such, the consolidated financial statements have been prepared on a going concern basis. 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. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Summary Of Significant Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies 2.1 Basis of preparation The consolidated financial statements of the Group have been prepared in accordance and in compliance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), which comprise all standards and interpretations approved by the IASB. All amendments to IFRSs issued by the IASB that are effective for annual periods that begin on or after 1 January 2022 have been adopted as further described within the footnotes to the consolidated financial statements. The Group has not adopted any standards or amendments to standards in issue that are available for early adoption. The consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and financial liabilities which have been measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. The consolidated financial statements are presented in U.S. Dollar (USD) and all values are rounded to the nearest thousand unless otherwise indicated. 2.2 Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company and its subsidiaries. Control is achieved when the Company: • has power over the investee; • is exposed, or has rights, to variable returns from its involvement with the investee; and • has the ability to use its power to affect its returns. When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including: • the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; • potential voting rights held by the Company, other vote holders or other parties; • rights arising from other contractual arrangements; and • any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statements of profit or loss and other comprehensive income or loss from the date the Company gains control until the date when the Company ceases to control the subsidiary. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. All intra-group transactions, balances, income and expenses are eliminated in full in consolidation. 2.3 Investments in joint ventures To the extent the Group concludes that it does not control, and thus consolidate, a joint venture, the Group accounts for its interest in joint ventures using the equity method of accounting. As such, investments in a joint venture are initially recognized at cost and the carrying amount is subsequently adjusted for the Group’s share of the profit or loss of the joint venture, as well as any distributions received from the joint venture. The Group carries its ownership interest in a joint venture as “Investment in joint venture” on the consolidated statements of financial position. The Group’s profit or loss includes its share of the profit or loss of the joint venture and, to the extent applicable, other comprehensive income or loss for the Group includes its share of other comprehensive income or loss of the joint venture. The Group’s share of a joint venture’s profit or loss in a particular year is presented as “Share of net loss of joint venture” in the consolidated statements of profit or loss and other comprehensive income or loss. The carrying amount of equity-accounted investments is assessed for impairment as a single asset. Impairment losses are incurred only if there is objective evidence of impairment as a result of loss events that have an impact on estimated future cash flows and that can be reliably estimated. Losses expected as a result of future events are not recognized. The Group did not recognize any impairment losses related to its investment in the joint venture for the years ended 31 December 2022, 2021 or 2020. Refer to Note 26 for additional information regarding the Group’s joint venture as of 31 December 2022 and 2021 and for the years ended 31 December 2022, 2021 and 2020. 2.4 Critical accounting judgments and key sources of estimation uncertainty The preparation of the consolidated financial statements in conformity with IFRS requires Group management to make judgments, estimates and assumptions about the reported amounts of assets, liabilities, income and expenses that are not readily apparent from other sources. The estimates and associated assumptions are based on information available when the consolidated financial statements are prepared, historical experience and other factors that are considered to be relevant. Judgments and assumptions involving key estimates are primarily made in relation to the measurement and recognition of revenue (as described in Note 2.6 and Note 5), the measurement and recognition of extinguishment of financial liabilities (as described in Note 2.18 and Note 20), the valuation of derivative financial liabilities (as described in Note 2.18 and Note 25), the valuation of management share appreciation rights (SARs) (as described in Note 2.18 and Note 21), and the valuation of deferred tax assets (as described in Note 2.14 and Note 10). Apart from those involving estimations, critical accounting judgments include the Group’s evaluation as to whether it controls its joint venture in China (as described in Note 2.3 and 26) and material uncertainties with respect to the Group’s going concern assessment (as described in Note 1.5). Existing circumstances and assumptions may change due to events arising that are beyond the Group’s control. Therefore, actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. 2.5 Segment reporting The Group operates and manages its business as one operating segment based on the manner in which the Chief Executive Officer, the Group’s chief operating decision maker, assesses performance and allocates resources across the Group. 2.6 Revenue recognition Product revenue The Company recognizes revenue from the sale of its biosimilar product to commercial partners, identified as the customer, when control is transferred, and the performance obligations have been satisfied. This is when the title passes to the customer, which is upon shipment of the product. At that point, the commercial partner has full discretion over the channel and price to sell the products. Revenue is recognized based on the net selling price from the commercial partners, which is considered to be the transaction price and includes estimated rebates, returns and chargebacks, and other forms of variable consideration recognized by the Customer. Variable consideration is accounted for by the Company only to the extent that it is highly probable that a significant reversal in the revenue recognized will not occur. Variable consideration, which includes any adjustments to the net selling price, is estimated based on the most likely amount method on a contract-by-contract Out-licensing The majority of the Group’s revenue is generated from long-term out-license approved for commercialization. These contracts typically include the Group’s promises to continue development of the underlying compound and to provide supply of the product to the customer upon commercialization. The Group concludes that the license, development services and commercial supply are separate performance obligations. This is because customers generally have the capabilities to perform the necessary development, manufacturing and commercialization activities on their own or with readily available resources and have the requisite expertise in the industry and the territory for which the license has been granted. Further, the intellectual property is generally in a later phase of development at the time the license is granted such that any subsequent development activities performed by the Group are not expected to significantly modify or transform the intellectual property. The fact that the Group is contractually obligated to perform development activities for and provide commercial supply to the customer does not impact this conclusion. The Group’s promise to provide commercial supply to its customers is contingent upon the achievement of regulatory approval in the particular territory for which the license has been granted. The consideration to which the Group is entitled pursuant to these contracts generally includes upfront payments and payments based upon the achievement of development and regulatory milestones. All contracts include a potential refund obligation whereby the Group must refund the consideration paid by the customer in the event of a technical failure or the occurrence of certain other matters that result in partial or full cancellation of the contract. As such, the entire transaction price is comprised of variable consideration, which is estimated using the most likely amount method due to the binary nature of the outcomes under these contracts. Such variable consideration is included in the transaction price only when it is highly probable that doing so will not result in a significant reversal of cumulative revenue recognized when the underlying uncertainty associated with the variable consideration is subsequently resolved. The Group does not account for a significant financing component since a substantial amount of consideration promised by the customer is variable and the amount or timing of that consideration varies on the basis of a future event that is not substantially within the control of either party. Certain contracts also include commercialization milestones upon the first commercial sale of a product in a particular territory, as well as royalties. Commercialization milestones and royalties are accounted for as sales-based royalties; therefore, such amounts are not included in the transaction price and recognized as revenue until the underlying sale that triggers the milestone or royalty occurs. Upfront payments, when applicable, are received in advance of transferring control of all goods and services. Therefore, a portion of upfront payments is recorded as a contract liability upon receipt. Due to the existence of refund provisions, upfront payments and certain development milestone payments are generally included in the transaction price upon submission of the first clinical trial application to the respective regulatory agency, since it is at this point in time that a significant reversal of cumulative revenue recognized related to such payments is no longer highly probable. Other development and regulatory milestones may not be included in the transaction price until such milestones are achieved due to the degree of uncertainty associated with achieving these milestones. Contract liabilities are presented on the consolidated statements of financial position as either current or non-current non-current The standalone selling prices of the development services and the license to intellectual property are not directly observable and, therefore, are estimated. The standalone selling price of the development services is estimated based on the expected costs to be incurred during the development period, using various data points such as the underlying development budget, contractual milestones and performance completed at the time of entering into the contract with a customer. The standalone selling price of the license is estimated using the residual approach on the basis that the Group licenses intellectual property for a broad range of amounts and has not previously licensed intellectual property on a standalone basis. Therefore, the Group first allocates the transaction price to the development services and subsequently allocates the remainder of the transaction price to the license. If product is still in early phase development and the constraint on variable consideration has not been resolved, all the transaction price is allocated to the development service. The standalone selling price of the commercial supply is directly observable and the stated prices in the Group’s supply contracts reflect the standalone selling price of such goods. The licenses to intellectual property are right of use licenses on the basis that the ongoing development work performed by the Group does not significantly affect the intellectual property to which the customer has rights. Therefore, control of the license transfers to the customer at the point in time when the right to use the license is granted to the customer. The license is generally granted to the customer at the time the contract is executed with the customer. The Group satisfies its performance obligation related to the development services over time as the Group’s performance enhances the value of the licensed intellectual property controlled by the customer throughout the performance period. The Group recognizes revenue using a cost-based input measure since this measure best reflects the progress of the development services and, therefore, the pattern of transfer of control of the services to the customer. In certain instances, the Group may subcontract services to other parties for which the Group is ultimately responsible. Costs incurred for such subcontracted services are included in the Group’s measure of progress for satisfying its performance obligation. Changes in the total estimated costs to be incurred in measuring the Group’s progress toward satisfying its performance obligation may result in adjustments to cumulative revenue recognized at the time the change in estimate occurs. Upon the achievement of regulatory approval and the commencement of commercial sale of its products, the Group will satisfy its performance obligation related to commercial supply at the point in time when control of the manufactured product is transferred to the customer. Transfer of control for such goods will occur in accordance with the stated shipping terms. The Group does not incur incremental costs of obtaining a contract with a customer that would require capitalization. Costs to fulfill performance obligations are not incurred in advance of performance and, as such, are expensed when incurred. Other revenue Other revenue primarily consists of clinical trial support services rendered by the Group for its customers, which is recognized as the service is provided. Revenue for such services is presented in the consolidated statements of profit or loss and other comprehensive income or loss net of any discounts. 2.7 Cost of product revenue Cost of product revenue includes the cost of inventory sold, labor costs, manufacturing overhead expenses and reserves for expected scrap, as well as shipping and freight costs and royalty costs related to in-license 2.8 Research and development expenses Research and development expenses primarily consist of personnel costs, material and other lab supply costs, facility costs and internal and external costs related to the execution of studies and other development program advancement initiatives. Such expenses also include costs incurred in preparation for commercial launch, such as designing and developing commercial-scale manufacturing capabilities and processes, quality control processes, production asset validation and other related activities. The costs also include amortization, depreciation and impairment losses related to software, property, plant and equipment, and right-of-use assets used in research and development activities and pre-commercial manufacturing and quality control activities. An internally generated intangible asset arising from the Group’s development is recognized only if the Group can demonstrate: the technical feasibility of completing the intangible asset so that it will be available for use or sale; the intent to complete the intangible asset and use or sell it; how the intangible asset will generate probable future economic benefits; the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and the ability to measure reliably the expenditure attributable to the intangible asset during its development. The amount initially recognized for internally-generated intangible assets is the sum of the expenditures incurred from the date when the intangible asset first meets the aforementioned recognition criteria. If an internally-generated intangible asset cannot be recognized, the related development expenditure is charged to profit or loss in the period in which it is incurred. 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, the Group did not capitalize any research and development expenses as internally-developed intangible assets during the years ended 31 December 2022, 2021 and 2020. 2.9 General and administrative expenses General and administration expenses primarily consist of personnel-related costs, including salaries and other related compensation expense, for corporate and other administrative and operational functions including finance, human resources, information technology and legal, as well as facility-related costs. These costs relate to the operation of the business and are not related to research and development initiatives. Expenditures related to general and administration activities are recognized as an expense in the period in which they are incurred. 2.10 Finance income and finance cost Finance income consists of changes in the fair value of derivative financial liabilities and interest income. Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition. Finance cost consists of changes in the fair value of derivative financial liabilities, interest expense related to lease liabilities and borrowings, accretion of borrowings and amortization of deferred debt issue costs. 2.11 Foreign currency translation The consolidated financial statements are presented in U.S. Dollars, which is the Group’s presentation currency. The Group maintains the financial statements of each entity within the Group in its respective functional currency. The majority of the Group’s expenses are incurred in U.S. Dollar and Icelandic Krona, and the majority of the Company’s cash and cash equivalents are held in a combination of U.S. Dollars and Euros. Transactions in currencies other than the Group’s presentation currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary rates prevailing at the date when the fair value was determined. Non- Exchange differences arising on translation of a foreign controlled subsidiary are recognized in other comprehensive income or loss and accumulated in a translation reserve within equity. The cumulative translation amount is reclassified to profit or loss if and when the net investment in the foreign controlled subsidiary is disposed. 2.12 Fair value measurements The Group measures certain financial liabilities at fair value through profit or loss (FVTPL) at each reporting period. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure the fair values of such financial liabilities, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques, as follows: • Level 1: quoted prices in active markets for identical assets and liabilities; • Level 2: inputs other than quoted prices that are observable for the asset or liability, either directly (e.g., prices) or indirectly (e.g., derived from prices); and • Level 3: inputs for the asset or liability that are unobservable. The carrying amounts of cash and cash equivalents, restricted cash, trade receivables, other current assets, contract assets, trade and other payables and accrued and other liabilities in the Group’s consolidated statements of financial position approximate their fair value because of the short maturities and nature of these instruments. For liabilities that are measured at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the fair value hierarchy by reassessing the inputs used in determining fair value at the end of each reporting period. 2.13 Goodwill and other intangible assets Goodwill Acquisitions are first reviewed to determine whether a set of assets acquired constitute a business and should be accounted for as a business combination. If the assets acquired do not meet the definition of a business, the Group will account for the transaction as an asset acquisition. If the definition of a business combination is met, the Group will account for the transaction using the acquisition method of accounting. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange fo r control of the acquiree. Acquisition-related costs are recognized in the consolidated statements of profit or loss and other comprehensive income or loss as incurred. Goodwill represents the excess of the purchase price of the business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities, contingent liabilities, the amount of any noncontrolling interests in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree. Goodwill is reviewed for impairment at least annually, and whenever there is an indication that the asset may be impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. The value in use calculation is performed using discounted expected future cash flows. The discount rate applied to these cash flows is based on the weighted average cost of capital and reflects current market assessments of the time value of money. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the business combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or as additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. The Group did not complete any business combinations during the years ended 31 December 2 021, and 2020. Refer to Note 1.1 for the Business Combination completed during the year ended 31 December 2022. Other intangible assets Other intangible assets consist of software, customer relationships, and intellectual property rights licensed from Biosana (see Note 2.18). Intangible assets acquired in a business combination are identified and recognized separately from goodwill if they satisfy the definition of an intangible asset and their fair values can be reliably measured. The cost of intangible assets is their fair value at the acquisition date. Intangible assets with finite useful lives are reported at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over an asset’s estimated useful life. The estimated useful life and amortization method are reviewed at each balance sheet date, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The following useful lives are used in the calculation of amortization: Software 3-5 years Customer relationships 7 years Intangible assets with indefinite useful lives are reviewed for impairment at least annually, and whenever there is an indication that the asset may be impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. The value in use calculation is performed using discounted expected future cash flows. The discount rate applied to these cash flows is based on the weighted average cost of capital and reflects current market assessments of the time value of money. 2.14 Income tax Income tax includes the current tax and deferred tax charge recorded in the consolidated statements of profit or loss and other comprehensive income or loss. Current tax The current tax expense is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the consolidated statements of profit or loss and other comprehensive income or loss because it excludes items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s current tax expense is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Accruals for tax contingencies are made when it is not probable that a tax authority will accept the tax position, based upon management’s interpretation of applicable laws and regulations and the expectation of how the tax authority will resolve the matter. Accruals for tax contingencies are measured using either the most likely amount or the expected value amount depending on which method the entity expects to better predict the resolution of the uncertainty. Deferred tax Deferred tax is provided in full for all temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit, except to the extent the temporary difference arises from: • The initial recognition of an asset or a liability in a transaction that is not a business combination and that affects neither the taxable profit nor accounting profit; • The initial recognition of residual goodwill (for deferred tax liabilities only); or • Investments in subsidiaries, branches, associates and joint ventures, where the Group is able to control the timing of the reversal of the temporary difference and it is not probable that it will reverse in the foreseeable future. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the balance sheet date, to recover or settle the carrying amount of the assets and liabilities. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is charged or credited to the consolidated statements of profit or loss and other comprehensive income or loss, except when the tax arises from a business combination or it relates to items charged or credited directly to equity, in which case the deferred tax is also taken directly to equity. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis in that taxation authority. 2.15 Property, plant and equipment Property, plant and equipment is recognized as an asset when it is probable that future economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured in a reliable manner. Property, plant and equipment which qualifies for recognition as an asset are initially measured at cost. The cost of property, plant and equipment includes an asset’s purchase price and any directly attributable costs of bringing the asset to working condition for its intended use. Depreciation is calculated and recognized as an expense on a straight-line basis over an asset’s estimated useful life. The estimated useful lives, residual values and depreciation method are reviewed at each balance sheet date, with the effect of any changes in estimate accounted for on a prospective basis. The following useful lives are used in the calculation of depreciation: Facility 40 years Facility equipment 5-20 years Computer equipment 3 years Leasehold improvements 3-15 Furniture and fixtures 5 years Certain of the Group’s property, plant and equipment assets have been pledged to secure borrowings as further described in Note 20. Significant disposals of pledged assets are subject to lender approval. Upon disposal or retirement of an asset, the difference between the sales proceeds, if applicable, and the carrying amount of the asset is recognized in the consolidated statements of profit or loss and other comprehensive income or loss at the time of disposal or retirement. At the end of each reporting period, or sooner if events triggering an interim impairment assessment occur, the Group reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that the value of such assets are impaired. Triggering events that warrant an interim impairment assessment include, but are not limited to, the technical obsolescence of equipment or failure of such equipment to meet regulatory requirements. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss and the carrying amount of the asset is reduced to its recoverable amount, which is the higher of fair value less costs |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of New Accounting Standards [Abstract] | |
New accounting standards | 3. New accounting standards New standards and interpretations adopted and effective during the periods The following new IFRS standards have been adopted by the Group effective 1 January 2022: IAS 16 (Amendments) – Property, Plant and Equipment – Proceeds before Intended Use The IASB issued amendments to IAS 16, which prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced before that asset is available for use; that is, proceeds from items being sold while bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Consequently, an entity recognizes such sales proceeds and related costs in profit or loss. The entity measures the cost of those items in accordance with IAS 2 Inventories. The amendments also clarified the meaning of ‘testing whether an asset is functioning properly’. IAS 16 now specifies this as assessing whether the technical and physical performance of the asset is such that it is capable of being used in the production or supply of goods or services, for rental to others, or for administrative purposes. The adoption of the amendments did not have a material impact on the consolidated financial statements of the Group. IAS 37 (Amendment) – Onerous Contracts – Cost of Fulfilling a Contract The IASB issued amendments to IAS 37 to specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract consist of both the incremental costs of fulfilling that contract (examples would be direct labor or materials) and an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The amendments apply to contracts for which the entity has not yet fulfilled all its obligations at the beginning of the annual reporting period in which the entity first applies the amendments. Comparatives are not restated. Instead, the entity shall recognize the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or other component of equity, as appropriate, at the date of initial application. The adoption of the amendments did not have a material impact on the consolidated financial statements of the Group. Annual Improvements to IFRS Standards 2018-2020 Cycle IFRS 9 Financial Instruments The IASB issues amendments on IFRS 9, which clarifies that in applying the ‘10 percent’ test to assess whether to derecognize a financial liability, an entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other’s behalf. The amendment is applied prospectively to modifications and exchanges that occur on or after the date the entity first applies the amendment. The adoption of the amendments did not have a material impact on the consolidated financial statements of the Group. New and revised IFRS standards in issue but not yet effective The following new standards are not yet adopted by or effective for the Group and have not been applied in preparing these consolidated financial statements. IFRS 10 and IAS 28 (Amendments) – Sale or Contribution of Assets between Investor and its Associate or Joint Venture: The IASB issues amendments to IFRS 10 and IAS 28, which relate to situations where there is a sale or contribution of assets between an investor and its associate or joint venture. The amendments state that gains or losses resulting from the loss of control of a subsidiary that does not contain a business in a transaction with an associate or a joint venture that is accounted for using the equity method, are recognized in the parent’s profit or loss only to the extent of the unrelated investors’ interests in that associate or joint venture. Similarly, gains and losses resulting from the remeasurement of investments retained in any former subsidiary (that has become an associate or a joint venture that is accounted for using the equity method) to fair value are recognized in the former parent’s profit or loss only to the extent of the unrelated investors’ interests in the new associate or joint venture. The effective date of the amendments has yet to be set by the Board; however, earlier application of the amendments is permitted. The Group anticipates that the application of these amendments may have an impact on the consolidated financial statements in future periods should such transactions arise. IAS 1 (Amendments) – Classification of Liabilities as Current or Non-Current The IASB issues amendments to IAS 1, which affect the presentation of liabilities as current or non-current non-current Annual Improvements to IFRS Standards 2018-2020 Cycle The Annual Improvements include amendments to the following Standards that are relevant to the Group: IFRS 16 Leases The IASB issues amendments on IFRS 16, which removes the illustration of the reimbursement of leasehold improvements. As the amendment to IFRS 16 only regards an illustrative example, no effective date is stated. IAS 1 Presentation of Financial Statements, Practice statement 2 and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors The aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies. The amendment is effective for annual periods beginning on or after 1 January 2023. IAS 12 Income Taxes These require companies to recognize deferred tax on transactions that, on initial recognition give rise to equal amounts of taxable and deductible temporary differences. The amendment is effective for annual periods beginning on or after 1 January 2023. The Group anticipates that the application of these amendments will not have a material impact on the consolidated financial statements. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of operating segments [abstract] | |
Segment reporting | 4. Segment reporting As disclosed in Note 2, the Group operates and manages its business as one operating segment. The majority of the Group’s revenue is generated from long-term out-license country-by-country Revenue from customers based on the geographic market in which the revenue is earned, which predominantly aligns with the rights conveyed to the Group’s customers pursuant to its out-license 2022 2021 2020 North America 30,780 11,660 37,928 Europe 39,433 20,509 19,710 Asia 6,798 1,323 4,107 Other 6,018 3,280 4,871 83,029 36,772 66,616 Non-current 2022 2021 North America 240 439 Europe 334,837 249,803 Asia and Other 3,715 2,194 338,792 252,436 Revenue from transactions with individual customers that exceed ten percent or more of the Group’s total revenue is as follows (in thousands, except for percentages): 2022 2021 2020 Revenue % Total Revenue % Total Revenue % Total Customer A 17,940 21.6 % 10,070 27.4 % 36,270 54.4 % Customer B 38,376 46.2 % 18,369 50.0 % 18,572 27.9 % |
Revenue And Other Income
Revenue And Other Income | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Revenue and other Operating Income [Abstract] | |
Revenue and other income | 5. Revenue and other income Revenue from contracts with customers Disaggregated revenue The following table summarizes the Groups’ revenue from contracts with customers, disaggregated by the type of good or service and timing of transfer of control of such goods and services to customers (in thousands): 2022 2021 2020 Product revenue (point in time revenue recognition) 24,836 — — License revenue (point in time revenue recognition) 424 1,453 24,067 Research and development and other service revenue (over time revenue recognition) 57,769 35,319 42,549 83,029 36,772 66,616 Reassessment of variable consideration Subsequent changes to the estimate of the transaction price are generally recorded as adjustments to revenue in the period of change. The Group updates variable consideration estimates on a quarterly basis. The quarterly changes in estimates did not result in material adjustments to the Group’s previously reported revenue or trade receivables during the years ended 31 December 2022, 2021, a n Contract assets and liabilities A reconciliation of the beginning and ending balances of contract assets and contract liabilities is shown in the table below (in thousands): Contract Contract 31 December 2020 34,724 53,066 Contract asset additions 21,525 — Amounts transferred to trade receivables (36,811 ) — Customer prepayments — 34,577 Revenue recognized — (13,107 ) 31 December 2021 19,438 74,536 Contract asset additions 29,823 — Amounts transferred to trade receivables (19,690 ) — Customer prepayments — 46,127 Revenue recognized — (26,782 ) Foreign currency adjustment (915 ) 51 31 December 2022 28,656 93,932 The net increase in contract assets as of 31 December 2022 is primarily due revenue recognized when the performance obligation has been met which is offset by the transfer of such amounts to trade receivables on the basis that the Group’s right to that consideration is no longer contingent on its performance. The net increase in contract liabilities as of 31 December 2022 is due to customer prepayments in advance of the Group’s performance. As of 31 December 2022, $3.3 million and $25.4 million are recorded as non-current Non-current next 2 to 3 years. As of 31 December 2022, $57.0 million and $36.9 million are recorded as non-current Non-current Remaining performance obligations Due to the long-term nature of the Group’s out-license year-end. out-license Out-license Teva Pharmaceutical Industries Ltd. (Teva) In August 2020, the Group entered into an exclusive strategic agreement with Teva for the commercialization in the United States of five of the Group’s biosimilar product candidates. The initial pipeline contains biosimilar candidates addressing multiple therapeutic areas. Under this agreement, the Group will be responsible for the development, registration and supply of the biosimilars, while Teva will be exclusively commercializing the products in the United States pursuant to an intellectual property license granted by the Group to Teva. In connection with the agreement, Teva made an upfront payment of $40.0 million. The Group also received $35.0 million in development milestones and is entitled to receive up to an additional $50.0 million in development milestones, $175.0 million in regulatory milestones and milestones due upon the first commercial sale of the biosimilar product candidates and $200.0 million in contingent payments based upon the achievement of cumulative net sales amounts. Subject to some limitations, as consideration for supply of product the Group will receive 40% of the value of Teva’s net sales of the product s. On 27 February 2023, the Group and Teva signed an amendment to licence & development agreement. As part of that amendment, the Group agreed to provide future financial consideration to Teva to assist with the cost of launching and marketing the licensed biosimilar products. STADA Arzneimittel AG (STADA) In November 2019, the Group entered into an exclusive strategic agreement with STADA for the commercialization of seven biosimilars in all key European markets and selected markets outside Europe. The initial pipeline contains biosimilar candidates aimed at treating autoimmunity, oncology, ophthalmology and inflammatory conditions. Under this agreement, the Group will be responsible for the development, registration and supply of the biosimilars, while STADA will be exclusively commercializing the products in the relevant territories pursuant to an intellectual property license granted by the Group to STADA. In connection with the agreement, STADA made an upfront payment of $5.9 million. The Group has received $78.6 million in development milestones through the year ended 31 December 2022. The Group is also entitled to receive up to an aggregate of $130.9 million in additional development milestones, $60.1 million in regulatory milestones and milestones due upon the first commercial sale of the biosimilar product candidates and $11.8 million in contingent payments based upon the achievement of cumulative net sales amounts. The Group is also expected to receive a royalty of approximately 40% of the estimated net selling price from STADA’s and its affiliates’ commercialization of the contracted biosimilars. |
Salaries And Other Employee Exp
Salaries And Other Employee Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Salaries And Other Employee Expenses [Abstract] | |
Salaries and other employee expenses | 6. Salaries and other employee expenses The average number of individuals employed by the Group during the years ended 31 December 2022, 2021, and 2020 was 858, 645, and 488 , respectively. The aggregate salary and other employee expenses incurred by the Group for these employees were as follows (in thousands): 2022 2021 2020 Salary expense 92,082 67,433 45,904 Defined contribution plan expense (1) 10,052 7,694 5,234 Long-term incentive plan expense 5,481 17,955 18,053 Share-based payments (see Note 22) 10,317 — — Other employee expense 11,670 10,274 10,186 Temporary labor 5,838 6,164 3,441 135,440 109,520 82,818 (1) Defined contribution plan expense consists of costs incurred by the Group for employees of certain subsidiaries that are required by local laws to participate in pension schemes. These pension schemes are not sponsored or administered by the Group. Pursuant to the requirements of the schemes, the Group is required to contribute a certain percentage of its payroll costs to the pension schemes. Such contributions are charged to the consolidated statements of profit or loss and other comprehensive income or loss as they become payable in accordance with the rules of the pension schemes. Salaries and other employee expense is included within the consolidated statements of profit or loss and other comprehensive income or loss as follows (in thousands): 2022 2021 2020 Cost of product revenue 42,501 — — Research and development expenses 52,962 71,588 49,043 General and administrative expenses 39,977 37,932 33,775 Total salary and other employee expenses 135,440 109,520 82,818 |
Finance Income And Finance Cost
Finance Income And Finance Cost | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Finance Income [Abstract] | |
Finance income and finance cost | 7. Finance income and finance cost Finance income earned during the years ended 31 December 2022, 2021 and 2020 is as follows (in thousands): 2022 2021 2020 Changes in the fair value of derivatives (see Note 27) 1,637 51,549 5,393 Interest income from cash and cash equivalents 556 18 166 Other interest income 356 1 49 2,549 51,568 5,608 Finance cost incurred during the years ended 31 December 2022, 2021, and 2020 is as follows (in thousands): 2022 2021 2020 Changes in the fair value of derivatives (see Note 27) 96,981 2,804 60,823 Interest on debt and borrowings 71,452 106,548 91,985 Consenting fee (see Note 20) 7,430 — — Loss on remeasurement of bonds (see Note 20) 6,511 — — Interest on lease liabilities (see Note 13) 6,022 6,423 5,481 Amortization of deferred debt issue costs 23 1,586 3,262 188,419 117,361 161,551 |
Depreciation, Amortization And
Depreciation, Amortization And Impairment | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Depreciation Amortization And Imapirment [Abstract] | |
Depreciation, amortization and impairment | 8. Depreciation, amortization and impairment Depreciation, amortization and impairment expenses incurred during the years ended 31 December 2022, 2021 and 2020 are as follows (in thousands): 2022 2021 2020 Depreciation and impairment of property, plant and equipment (see Note 12) 9,807 10,666 10,363 Depreciation of right of use assets (see Note 13) 9,869 8,699 7,188 Amortization and impairment of intangible assets (see Note 15) 3,488 4,916 1,010 23,164 24,281 18,561 Depreciation, amortization and impairment expense is included within the consolidated statements of profit or loss and other comprehensive income or loss as follows (in thousands): 2022 2021 2020 Cost of product revenue 10,053 — — Research and development expenses 9,757 21,764 16,358 General and administrative expenses 3,354 2,517 2,203 Total depreciation, amortization and impairment expense 23,164 24,281 18,561 |
Audit Fees
Audit Fees | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Audit Fees [Abstract] | |
Audit fees | 9. Audit fees 2022 2021 2020 Financial Statement audit fees 2,615 5,502 382 Other fees, including tax services 676 136 607 Total fees 3,291 5,638 989 Audit fees for 2021 include fees for the audit of the PCAOB uplift of the consolidated financial statements for 2019 and 2020. Other fees for 2022 include review services for the F-4 and other SEC filings. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Income Tax [Abstract] | |
Income Tax | 10. Income tax Taxation recognized in the consolidated statements of profit or loss and other comprehensive income or loss during the years ended 31 December 2022, 2021 and 2020 is as follows (in thousands): Current tax 2022 2021 2020 Direct taxes - current 1,015 706 248 Direct taxes – prior year (115 ) 491 — Total current tax 900 1,197 248 Deferred tax Current (54,236 ) (48,414 ) (121,974 ) Prior year 15,269 (477 ) — Total deferred tax (38,967 ) (48,891 ) (121,974 ) Total income tax benefit (38,067 ) (47,694 ) (121,726 ) The prior year deferred tax impact of $15.3 million mainly relates to foreign currency impact on losses denominated in Icelandic krona. The factors affecting the tax benefit during the years ended 31 December 2022 and 2021 relate to the recognition of a deferred tax asset on accumulated tax losses,as management assessed that it was probable that the accumulated tax losses would be fully utilized in the coming years, as further described below. There were no accruals for tax contingencies during the years ended 31 December 2022, 2021, and 2020. The effective tax rate for the year of 6.9% (2021: 32.0%, 2020: 41.7%) is lower than the applicable Luxembourgish statutory rate of corporation tax. The reconciling items between the statutory rate and the effective tax rate are as follows: 2022 2021 2020 Tax rate 24.9 % 24.9 % 24.9 % Effect of tax rate in foreign jurisdictions (2.4 %) (8.2 %) (4.9 %) Recognition of tax losses — — 27.9 % Permanent differences (8.9 %) 30.4 % — Non-recognition (3.8 %) (15.0 %) (6.2 %) Other items (2.9 %) (0.1 %) — Effective tax rate 6.9 % 32.0 % 41.7 % The movement in net deferred taxes during the years ended 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Balance at 1 January 170,268 121,647 Deferred tax credited to profit or loss 38,919 48,621 Balance at 31 December 209,187 170,268 Deferred tax assets 209,496 170,418 Deferred tax liabilities (309 ) (150 ) Where there is a right of offset of deferred tax balances within the same tax jurisdiction, IAS 12 requires these to be presented after such offset in the consolidated statements of financial position. The closing deferred tax balances included above are after offset; however, the disclosure of deferred tax assets by category below are presented before such offset. The amount of deferred tax recognized in the consolidated statements of financial position as of 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Deferred tax assets attributable to temporary differences in respect of tax losses 205,290 158,330 Deferred tax assets attributable to other temporary differences 6,832 12,088 Deferred tax liabilities attributable to other temporary differences (2,935 ) (150 ) Net deferred tax assets 209,187 170,268 A deferred tax liability of $2.9 million and $ million has been recognized in relation to the difference in measurement basis of customer relationships and other ordinary timing differences as of 31 December 2022 and 2021, respectively. A deferred tax asset has been recognized in relation to ordinary timing differences arising from various provisions, reserves, employee benefits and tax losses carried forward in the group. The recognition of the deferred tax asset on the Icelandic tax losses, since 2020, is backed by the Group’s latest ten-year forecast whereby profit associated with product and milestone revenue is significant and provides considerable headroom over and above the level needed to support full recognition of such losses. A deferred tax asset of million is recognized as of 31 December 2022 and 2021, respectively. These tax losses expire as follows (in thousands): 2023-2025 35,751 2026-2028 210,224 Later 836,536 1,082,511 |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Loss per share | 11. Loss per share Basic loss per share is computed by dividing loss for the year by the weighted average number of ordinary shares outstanding during the period. Diluted loss per share is computed by adjusting the calculation of basic loss per share for the effects of dilutive potential ordinary shares from financial instruments that may be converted or exercised into ordinary shares of the Group. For the year ended 31 December 2022 , potential ordinary shares pursuant to the RSUs, Senior Bond Warrants, Aztiq Convertible Bond, December Convertible Bonds, OACB Warrants The calculation of basic and diluted loss per share for the years ended 31 December 2022, 2021, and 2020 is as follows (in thousands, except for share and per share amounts): 2022 2021 2020 Earnings Loss for the year (513,580 ) (101,504 ) (170,044 ) Number of shares Weighted average number of ordinary shares outstanding 197,721,710 110,673,309 93,648,813 Basic and diluted loss per share (2.60 ) (0.92 ) (1.82 ) |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Property Plant And Equipment [Abstract] | |
Property, plant and equipment | 12. Property, plant and equipment Property, plant and equipment consists of facility and computer equipment, furniture, fixtures and leasehold improvements. Movements within property, plant and equipment during the years ended 31 December 2022 and 2021 are as follows (in thousands): Facility Facility Furniture, Computer Total Cost Balance at 1 January 2022 — 88,510 32,395 1,551 122,456 Reclassification of assets — 25,486 (25,486 ) — — Additions 115,000 35,156 2,706 357 153,219 Disposals — (2,959 ) — — (2,959 ) Translation difference — (1,043 ) (17 ) 51 (1,009 ) Balance at 31 December 2022 115,000 145,150 9,598 1,959 271,707 Depreciation Balance at 1 January 2022 — 33,853 8,614 1,459 43,926 Reclassification of assets — 5,985 (5,985 ) — — Depreciation 359 8,752 621 75 9,807 Disposals — (2,597 ) — — (2,597 ) Translation difference — 9 (17 ) (15 ) (23 ) Balance at 31 December 2022 359 46,002 3,233 1,519 51,113 Net carrying amount Balance at 31 December 2022 114,641 99,148 6,365 440 220,594 Facility Furniture, Computer Total Cost Balance at 1 January 2021 70,308 27,600 1,513 99,421 Additions 19,345 4,845 69 24,259 Translation difference (1,143 ) (50 ) (31 ) (1,224 ) Balance at 31 December 2021 88,510 32,395 1,551 122,456 Depreciation Balance at 1 January 2021 25,540 7,016 1,419 33,975 Depreciation 6,870 1,637 67 8,574 Facility Furniture, Computer Total Impairment 2,092 — — 2,092 Translation difference (649 ) (39 ) (27 ) (715 ) Balance at 31 December 2021 33,853 8,614 1,459 43,926 Net carrying amount Balance at 31 December 2021 54,657 23,781 92 78,530 On 16 November 2022 the Group entered into a share purchase agreement (the “Share Purchase Agreement”) relating to shares in Fasteignafélagið Sæmundur hf. (“Saemundur”) with ATP Holdings ehf., an affiliate of Aztiq. Pursuant to the Share Purchase Agreement, Alvotech is purchased 99.99 % of the shares in Saemundur through the issuance the Aztiq Convertible Bond, as defined and discussed in Note 20, and the assumption of debt. At the time of closing, Saemundur’s only asset was the property where Alvotech’s Reykjavik manufacturing and research facility (the “Facility”) are located. See Note 20 for further details. The Share Purchase Agreement was accounted for as an asset acquisition under IFRS 3 as all of the fair value of the gross assets acquired from Saemundur were concentrated in the Alvotech Facility. As a result, the purchase price was determined to be $ 115.0 80.0 30.0 5.0 3.9 At 31 December 2021, the Group performed a review of its property, plant and equipment and determined certain laboratory equipment was no longer in use. In assessing recoverable amount, the Group determined the market for resale was non-existent million during each of the year ended 31 December 2021. See Note 8 for where impairment charges have been recognized as an expense within in the consolidated statements of profit or loss and other comprehensive income or loss. The Group pledged $122.4 million and $6.8 million of property, plant and equipment as collateral to secure bank loans with third parties as of 31 December 2022 and 2021, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Presentation of leases for lessee [abstract] | |
Leases | 13. Leases The Group’s leased assets consist of facilities, fleet and equipment pursuant to both arrangements with third parties and related parties. The carrying amounts of the Group’s right-of-use 2022 2021 Right-of-use Balance at 1 January 126,801 111,519 Adjustments for indexed leases 10,201 5,358 New or renewed leases 9,583 18,871 Derecognition due to acquisition of Alvotech Facility (see Note 12) (88,941 ) — Depreciation (9,869 ) (8,699 ) Translation difference (274 ) (248 ) Balance at 31 December 47,501 126,801 The Group’s right-of-use 2022 2021 Right-of-use Facilities 41,702 122,927 Fleet 339 159 Equipment 5,460 3,715 47,501 126,801 At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The Group’s lease liabilities and the movements during the years ended 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Lease liabilities Balance at 1 January 122,140 108,947 Adjustments for indexed leases 10,247 5,358 New or renewed leases 7,458 18,116 Installment payments (7,655 ) (6,595 ) Derecognition due to acquisition of Alvotech Facility (see Note 12) (80,075 ) — Foreign currency adjustment (11,682 ) (3,744 ) Translation difference 99 58 Balance at 31 December 40,532 122,140 Current liabilities (5,163 ) (7,295 ) Non-current 35,369 114,845 The amounts recognized in the consolidated statements of profit or loss and other comprehensive income or loss during the years ended 31 December 2022, 2021 and 2020 in relation to the Group’s lease arrangements are as follows (in thousands): 2022 2021 2020 Depreciation expense from right-of-use Facilities (9,423 ) (8,228 ) (6,955 ) Fleet (119 ) (38 ) (7 ) Equipment (327 ) (433 ) (226 ) Total depreciation expense from right-of-use (9,869 ) (8,699 ) (7,188 ) Interest expense on lease liabilities (6,022 ) (6,423 ) (5,481 ) Foreign currency difference on lease liability 11,682 3,744 3,248 Loss from extinguishment of lease agreement (see Note 12) (3,859 ) — (241 ) Total amount recognized in profit and loss (8,068 ) (11,378 ) (9,662 ) The maturity analysis of undiscounted lease payments as of 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Less than one year 6,000 13,164 One to five years 20,160 49,379 Thereafter 22,274 117,511 48,434 180,054 The Group’s lease liabilities as of 31 December 2022 and 2021 do not include $0.1 million of costs for short-term |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Goodwill [Abstract] | |
Goodwill | 14. Goodwill The Group’s goodwill balances as of 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Balance as of 1 January 12,367 13,427 Translation difference (724 ) (1,060 ) Balance as of 31 December 11,643 12,367 Goodwill is recognized at the Group level, which is determined to be the smallest cash-generating unit. The recoverable amount of the cash-generating unit is determined based on a value in use calculation which uses cash flow projections based on the financial forecast for the period 2023-203 0 ten-year Cash flows beyond 203 0 There were no goodwill impairment charges recognized in the consolidated statements of profit or loss and other comprehensive income or loss in any prior periods. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
Intangible Assets | 15. Intangible assets Intangible assets consist of software, customer relationships and licensed intellectual property rights. Movements in intangible assets during the years ended 31 December 2022 and 2021 are as follows (in thousands): Software Customer Intellectual Total Cost Balance at 1 January 2022 8,777 2,329 15,000 26,106 Additions 7,682 — — 7,682 Impairment (2,755 ) — — (2,755 ) Translation difference (20 ) (148 ) — (168 ) Balance at 31 December 2022 13,684 2,181 15,000 30,865 Amortization Balance at 1 January 2022 2,933 1,664 — 4,597 Amortization 423 310 — 733 Translation difference (13 ) (104 ) — (117 ) Balance at 31 December 2022 3,343 1,870 — 5,213 Net carrying amount Balance at 31 December 2022 10,341 311 15,000 25,652 Software Customer Intellectual Total Cost Balance at 1 January 2021 7,603 2,528 — 10,131 Additions 5,186 — 15,000 20,186 Impairment (3,993 ) — — (3,993 ) Translation difference (19 ) (199 ) — (218 ) Balance at 31 December 2021 8,777 2,329 15,000 26,106 Amortization Balance at 1 January 2021 2,351 1,445 — 3,796 Amortization 591 332 — 923 Translation difference (9 ) (113 ) — (122 ) Balance at 31 December 2021 2,933 1,664 — 4,597 Net carrying amount Balance at 31 December 2021 5,844 665 15,000 21,509 Additions during the year ended 31 December 2021 were primarily comprised of licensed intellectual property rights from Biosana. Refer to Note 2.18 for further details. Expense for amortization of the Group’s intangible assets is included within the consolidated statements of profit or loss and other comprehensive income or loss as follows (in thousands): 2022 2021 2020 Cost of product revenue 471 — — Research and development expenses — 324 357 General and administrative expenses 262 599 653 733 923 1,010 At 31 December, 2022 and 2021, the Group performed a review of its intangible assets and determined certain software development had been abandoned. In assessing recoverable amount, the Group determined the market for resale was non-existent. million and $ million during the year ended December and , respectively. The impairment charge was recognized as an expense as follows: $ million in “Cost of product revenue” and $ million in “General and administrative expenses.” For the year ended 31 December 2021 the impairment was recognized as an expense within “Research and development expenses” in the consolidated statements of profit or loss and other comprehensive income or loss. At 31 December 2022 the Group performed an impairment analysis on the intellectual property rights indefinite lived intangible asset. No impairment loss was recognized as the asset’s recoverable amount exceeded the carrying amount. |
Cash And Cash Equivalents
Cash And Cash Equivalents | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
Cash And Cash Equivalents | 16. Cash and cash equivalents Cash and cash equivalents Cash and cash equivalents include both cash in banks and on hand. Cash and cash equivalents as shown in the consolidated statements of cash flows as of 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Cash and cash equivalents denominated in US dollars 10,377 15,798 Cash and cash equivalents denominated in other currencies 56,050 1,758 66,427 17,556 Restricted cash Restricted cash as shown on the consolidated statements of financial position relates to cash that may only be used pursuant to certain of the Group’s borrowing arrangements. Therefore, these deposits are not available for general use by the Group. Movements in restricted cash balances during the years ended 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Balance at 1 January 10,087 10,087 Additions during the year 14,914 Interest income 186 — Balance at 31 December 25,187 10,087 The Group’s restricted cash is available for use after one year or later. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Classes of current inventories [abstract] | |
Inventories | 17. Inventories The Group’s inventory balances as of 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Raw materials and supplies 41,961 26,590 Work in progress 29,450 13,730 Finished goods 2,121 — Inventory reserves (2,062 ) (1,262 ) Balance at 31 December 71,470 39,058 The increase in inventory from 31 December 2021 to 31 December 2022 is due to the commercial launch of certain of the Group’s biosimilar product candidates. The Company recognized $8.5 million of inventories in cost of product revenue during the year ended 31 December 2022. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Current Assets [Abstract] | |
Other Current Assets | 18. Other current assets The composition of other current assets as of 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Value-added tax 6,468 4,725 Prepaid expenses 20,601 9,320 Proceeds receivable from Convertible Bonds (see Note 20) 3,520 — Derivative asset 851 — Other short-term receivables 1,509 691 32,949 14,736 |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of classes of share capital [abstract] | |
Share Capital | 19. Share capital An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all liabilities. Equity instruments issued by a Group entity are recognized in the amount of the proceeds received, net of direct issue costs. Prior to the Capital Reorganization the Group’s equity consisted of Class A and Class B ordinary shares (together the “Predecessor Ordinary Shares”). The Group’s authorized share capital was $ million, consisting of the equivalent of Class A or Class B ordinary shares with a par value of $ per share. All share capital issued as of December and was fully paid. The Capital Reorganization resulted in the following share capital activity: • All of the outstanding Predecessor Ordinary Shares were exchanged for 180,600,000 Ordinary Shares and 38,330,000 Predecessor Earn Out Shares; • 976,505 of Class A OACB Ordinary Shares were exchanged for Ordinary Shares; • 6,250,000 of Class B OACB Ordinary Shares were exchanged for 5,000,000 Ordinary Shares and 1,250,000 OACB Earn Out Shares; and • 17,493,000 Ordinary Shares were issued in the PIPE Financing. No dividends were paid or declared during the years ended 31 December 2022, 2021, and 2020. Share capital and share premium of the Group’s Ordinary Shares issued as of 31 December 2022 and 2021 is as follows (in thousands, except for share amounts): 2022 2021 Shares Share Shares Share Class A ordinary shares — — 13,386,098 997,824 Class B ordinary shares — — 95,701 2,429 Ordinary Shares 252,160,087 1,060,558 — — Total share capital and share premium 252,160,087 1,060,558 13,481,799 1,000,253 Movements in the Group’s Class A and Class B ordinary shares, share capital and share premium during the years ended 31 December 2022, 2021 and 2020 are as follows (in thousands, except for share amounts): Ordinary Predecessor Share Share Total Balance at 1 January 2020 — 6,937,062 69 102,359 102,428 Share issue — 322,077 4 64,997 65,001 Transaction costs arising on share issue — — — (616 ) (616 ) Balance at 31 December 2020 — 7,259,139 73 166,740 166,813 Share issue — 6,222,660 62 833,378 833,440 Balance at 31 December 2021. — 13,481,799 135 1,000,118 1,000,253 Elimination of Predecessor Ordinary Shares (Note 1.1) — (13,481,799 ) (135 ) 135 — Issuance of Ordinary Shares (Note 1.1) 186,576,505 — 1,866 63,169 65,035 PIPE Financing (Note 1.1) 17,493,000 — 175 174,755 174,930 Transaction costs arising on share issue — — — (5,562 ) (5,562 ) Predecessor Earn Out Shares (Note 22) 38,330,000 — — (227,500 ) (227,500 ) OACB Earn Out Shares (Note 22) 1,250,000 — — (9,100 ) (9,100 ) SARs Settlement (Note 21) 3,510,582 — 35 30,267 30,302 Settlement of related party loans with Ordinary Shares 5,000,000 — 50 32,150 32,200 Balance at 31 December 2022. 252,160,087 — 2,126 1,058,432 1,060,558 Alvotech Manco ehf., a subsidiary of Alvotech hf., owns 27,072,167 Ordinary Shares in Alvotech. Such shares are intended for the future issuance of Ordinary Shares under the Management Incentive Plan and other equity offerings. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [abstract] | |
Borrowings | 20. Borrowings The Group’s debt consists of interest-bearing borrowings from financial institutions, related parties and third parties. Outstanding borrowings, net of transaction costs, presented on the consolidated statements of financial position as current and non-current 2022 2021 Senior Bonds 530,506 — Bonds — 394,129 Aztiq Convertible Bond 65,793 — Alvogen Facility 64,588 — Convertible Bonds 32,441 — Other borrowings 71,242 6,782 Total outstanding borrowings, net of debt issue costs 764,570 400,911 Less: current portion of borrowings (19,916 ) (2,771 ) Total non-current 744,654 398,140 Convertible shareholder loans In connection with the Business Combination Agreement (see Note 1.1), on 7 December 2021, the Group’s shareholders entered into the BCA Framework Agreement resulting in the exercise of the conversion, warrant, and funding rights associated with the convertible shareholder loans. As a result, the following issuances of Class A ordinary shares occurred: • 1,522,103 shares from the exercise of warrant and funding rights in exchange for $101.3 million of cash; • 1,137,248 shares from the exercise of warrant rights in exchange for the settlement of $73.7 million of accrued payment-in-kind • 2,306,555 shares resulting from the conversion of $166.8 million of outstanding principal and accrued payment-in-kind In connection with these exercises, for the year ended 31 December 2021, the Group recognized finance income of $48.7 million resulting from the remeasurement of the derivative liabilities at the date of extinguishment and a $149.2 million gain on extinguishment of financial liabilities, which primarily reflects the difference between the carrying amount of the pre-transaction Convertible bonds, Bonds and Senior Bonds Convertible bonds On 14 December 2018, the Group issued $300.0 million of convertible bonds to multiple third parties. The offering included $125.0 million of Tranche A bonds that included a guarantee from Alvogen and a 10 % bonus if the bondholders converted at the time of an IPO. In addition, $175.0 million of Tranche B bonds were issued that do not have a guarantee but include a 25% bonus if the bondholders elect to convert at the time of an IPO. The bonds offered a 15% payment-in-kind The Group recorded $ 5.4 million, recorded as a component of finance income in the consolidated statements of profit or loss and other comprehensive income or loss for the year ended 31 December 2020. Fair value measurements of the derivative financial liabilities are set out in Note 27. Bonds On 24 June 2021, holders of the Group’s convertible bonds converted $100.7 million of principal and accrued interest and $4.8 million of additional premium offered by the Group to the bondholders into 455,687 Class A ordinary shares. Following the conversion, certain bondholders elected to redeem their remaining bonds for cash, resulting in the payment of $55.3 million in outstanding principal and accrued interest plus an additional $6.1 million of premium that the bondholders elected to be paid in cash. The remaining unconverted and unredeemed bonds were replaced with new bonds with an extended maturity of June 2025 and the elimination of conversion rights, among other amendments to the terms and conditions. The Group offered the holders of the replaced bonds an extension premium of $8.1 million for their agreement to extend the maturity of the replaced bonds to June 2025, as well as an additional premium of $2.6 million, both of which were granted to the bondholders in the form of additional bonds. The Group also issued an additional $113.8 million of bonds to one previous bondholder and one new bondholder. On the date of issuance, the fair value and the nominal value of the bonds was $358.8 million and $397.4 million, respectively. The difference between the nominal value and fair value was recognized as a discount that will be amortized over the term of the bonds. The Group determined that the 24 June 2021 transaction was a substantial modification to its convertible bonds and the associated derivative financial liability and accounted for the transaction as an extinguishment. As a result, the Group recognized a gain on extinguishment of financial liabilities of $2.6 million during the year ended 31 December 2021, primarily driven by the difference between the fair value of the post-transaction bonds and the carrying amount of the pre-transaction • Transaction costs and fees incurred as part of the extinguishment; • The acceleration of previously deferred debt issue costs incurred in connection with the issuance of the pre-transaction • The acceleration of previously unamortized accretion of the pre-transaction Prior to the extinguishment of the convertible bonds and as noted above, the bondholders had the option to convert the bonds into Class A ordinary shares up to fourteen days prior to maturity. This conversion right was separately accounted for as a derivative financial liability. During the period from 1 January 2021 to 24 June 2021, there was no change in fair value of the derivative financial liability. As of 31 December 2021, the carrying amount of the bonds was In January and June of 2022, the Group amended the terms of the outstanding bonds. The amendments resulted in the following: • Following the close of the Business Combination, the interest rate will range from 7.5% to 10.0% depending on the amount of aggregate net proceeds, as defined by the terms of the amended bond agreement; • A $7.4 million consent fee, recognized as finance costs, paid to the bondholders who did not vote against the Business Combination Agreement; • The requirement for Alvotech to maintain a minimum of $25.0 million of restricted cash in a separate liquidity account; and • A decrease in the interest rate to 7.5%, following the closing of the Business Combination, if the Company issues additional shares within six months of the Closing Date, resulting in the Company exceeding the amount of aggregate net proceeds, as defined in the bond agreement. As a result of the closing of the Business Combination, there was a change in future cash flows on the bonds related to the increase in interest rate from 7.5% to 10.0%. The Company remeasured the carrying value in accordance with IFRS 9 to the present value of the revised cash flows and recognized a $6.5 million loss on the remeasurement of the bonds. Senior Bonds On 16 November 2022, the Group amended and upsized the outstanding bonds by $70.0 million. The amended bond agreement (the “Senior Bonds”) resulted in the following: • An increase in principal from $455.7 million at the time of the amendment, to $525.7 million; • An increase in the interest rate, resulting in a range from 10.75% to 12.0% depending on the occurrence of certain events, as defined by the terms of the agreement. The Group accounted for this interest rate feature (the “Senior Bond Interest Rate Feature”) as an embedded derivative, classified as an other current asset in the consolidated statement of financial position as of 31 December 2022; • Amended the terms of the related party loans from Alvogen, setting forth subordination conditions; • Contingently issuable penny warrants (exercise price of $0.01) to the bondholders (the “Senior Bond Warrants”) if certain events occur, issuable in two tranches representing 1.5% and 1.0% of the fully diluted ordinary share capital, as defined in the Senior Bonds agreement (see Note 27). The Group determined that the 16 November 2022 transaction was a substantial modification to its bonds and accounted for the transaction as an extinguishment. As a result, the Group recognized a loss on extinguishment of financial liabilities of $40.9 million, including $12.1 million of transaction costs, during the year ended 31 December 2022, primarily driven by the difference between the fair value of the post-transaction pre-transaction • Extinguishment of bonds with a carrying value of $440.1 million, including $4.8 million of accrued interest; • Net cash proceeds of $57.9 million, including transaction costs paid of $12.1 million; • Recognition of a $4.6 million derivative asset for the Senior Bond Interest Rate Feature; • Recognition of $528.2 million and $15.4 million representing the fair value of the new Senior Bonds and Senior Bond Warrants (see Note 27), respectively. As of 31 December 2022, the carrying amount of the Senior Bonds is $530.5 million. Accrued interest on the Senior Bonds as of 31 December 2022 is $2.6 million. The Group has the option, at any time, to prepay all or any part of the outstanding bonds. The Group has pledged its intellectual property as collateral for the Senior Bonds. Aztiq Convertible Bond On 16 November 2022 the Group issued a convertible bond (the “Aztiq Convertible Bond”) to ATP Holdings ehf. for the Share Purchase Agreement and the acquisition of the Alvotech Facility (See Note 12). The Aztiq million and carries an interest rate of is six-month The conversion feature (the “Aztiq Conversion Feature”) was determined to be an embedded derivative as the economic characteristics and risks are not closely related to the debt host. The Group classified the Aztiq Conversion Feature as equity due to the conversion price having preservation and passage of time adjustments that meet fixed-for-fixed • $64.0 million related to the debt host; • $16.0 million related to the Aztiq Conversion Feature; • $30.0 million related to the loans (the “Facility Loans”) on the building, which were assumed by the Group as part of the asset acquisition. As of 31 December 2022, the carrying amount of the Aztiq Convertible Bond is $65.8 million. Accrued interest on the Aztiq Convertible Bond as of 31 December 2022 is $0.5 million. Facility Loans As noted above, the Group assumed the Facility Loans as part of the asset acquisition for the Facility. On 9 December 2022, the Group extinguished the assumed loans from Arion banki hf., with an outstanding balance of $ 30.9 million, with new loans from Landsbankinn hf. for $48.8 million, and carries variable interest rate, currently 8.3% and 9.3% per annum. The refinancing resulted in net cash proceeds of $17.2 million after transaction costs paid. As of 31 December 2022, the carrying amount of the Facility Loans is $48.8 million. Accrued interest on the Facility Loans as of 31 December 2022 is $0.3 million. Related party loans and Alvogen Facility In connection with an undertaking by Alvotech shareholders to ensure that Alvotech was sufficiently funded through the closing of the Business Combination by providing at least $50.0 million for the operations of the Group, Alvogen and Aztiq provided interest free loan advances to Alvotech. On 22 February 2022, Alvotech borrowed $15.0 million under the facility from Alvogen, as lender. On 29 March 2022, Alvotech withdrew an additional amount of $10.0 million under the facility, for aggregate indebtedness of $25.0 million. On 11 March 2022, Alvotech borrowed $15.0 million under the facility from Aztiq, as lender. On 31 March 2022, Alvotech withdrew an additional amount of $10.0 million under the facility, for aggregate indebtedness of $25.0 million. On 12 July 22, the Company entered into settlement agreements with both Aztiq and Alvogen for the $ million in related party loans provided by each party. As a result of the settlement agreements, Aztiq and Alvogen each received Ordinary Shares. The settlement was accounted for as an extinguishment of financial liabilities. In accordance with IFRS 9, the difference between the fair value of the consideration paid for the settlement, which was determined to be $ million, and the extinguished financial liabilities of $ million was recognized as a gain on the extinguishment of financial liabilities in the consolidated statement of profit or loss and other comprehensive income or loss. On 11 April 2022, Alvotech entered into a loan agreement with Alvogen, as lender, for a loan of up to $40.0 million bearing an interest rate of 10% per annum. The loan was drawable in two separate installments of $20.0 million each. On 12 April 2022, Alvotech withdrew the first installment of $20.0 million. Alvotech withdrew a second installment of $20.0 million on 9 May 2022 for aggregate indebtedness of $40.0 million. On 1 June 2022, Alvotech also entered into a loan agreement with Alvogen, as lender, for a loan of $20.0 million bearing an interest rate of 10% per annum. Alvotech withdrew the entire loan amount of $20.0 million on 1 June 2022. In connection with the 16 November 2022 bond amendment, Alvotech entered into a subordinated loan agreement with Alvogen (the “Alvogen Facility”). As part of the subordinated loan agreement, the Group agreed to the following: • Rollover the $63.3 million outstanding, which includes $3.3 million of accrued interest, under the Alvogen loans, into the new subordinated loan agreement, and withdraw an additional $ • The interest rate was increased from 10% per annum to 17.5% per annum on the outstanding amounts under the loan facility; • A repayment date of 91 days after the full redemption or the final maturity date of the Senior Bonds; • Contingently issuable penny warrants to the bondholders (the “Alvogen Facility Warrants”) if certain events occur, representing 4.0% of the fully diluted ordinary share capital, as defined in the Alvogen Facility agreement. The Group determined that the 16 November 2022 transaction was a substantial modification to its related party loans and accounted for the transaction as an extinguishment. As a result, the Group recognized the following: • Extinguishment of bonds with a carrying value of $63.2 million, including $3.2 million of accrued interest; • Net cash proceeds of $50.0 million; • Recognition of $113.2 million and $1.3 million representing the fair value of the new Alvogen Facility and Alvogen Facility Warrants, respectively. On 20 December 2022, the Company repaid $50.0 million under the Alvogen Facility, with proceeds from the Convertible Bonds. As a result, Alvotech extinguished the liability to issue the Alvogen Facility Warrants. As of 31 December 2022, the carrying amount of the loans is $64.6 million. Convertible Bonds On 20 December 2022 the Group issued two tranches of convertible bonds (the “Convertible Bonds”). Tranche A is ISK denominated with a principal balance of $59.1 million, of which $3.5 million in cash proceeds were received subsequent to 31 December 2022 (see Note 18), payment-in-kind payment-in-kind The conversion features (the “Tranche A Conversion Feature” and “Tranche B Conversion Feature”) for both the Tranche A and Tranche B Convertible Bonds were determined to be embedded derivatives as the economic characteristics and risks are not closely related to the debt host. The Group classified the Tranche A Conversion Feature as a liability due to the variability created by conversion rates resulting from the tranche being denominated in ISK and was determined to have a fair value of $ million at issuance date (see Note 27 for further details). The Group classified the Tranche B Conversion Feature as equity due to the conversion price having preservation and passage of time adjustments that meet the fixed-for-fixed criteria. As of 31 December 2022, the carrying amount of the Tranche A and Tranche B Convertible Bond is $31.9 million and $0.5 million, respectively. Other borrowings In 2015 and 2016, the Group entered into several term loan agreements with a financial institution for a total principal amount of $25.9 million. The loan agreements set forth terms and conditions between the Group and the financial institution, inclusive of certain representations and non-financial non-financial In 2021, the Group entered into two loan agreements with two separate lenders, Origo hf. and Arion banki hf. The outstanding balance on the borrowings held with Origo hf. and Arion banki hf., including accrued interest, was $0.2 million and $0.3 million as of 31 December 2022 and 31 December 2021, respectively. The loans mature in late 2023 and 2024. On 22 February 2022, the Group entered into a credit facility agreement with Landsbankinn hf. with the ability to draw down an amount up to $18.3 million. The credit facility is in place to help finance equipment purchases in the future. Per the terms of the credit facility, any borrowings are required to be paid by 1 August 2023 and have a variable interest rate of USD SOFR plus a margin of 4.95%. As of 31 December 2022, the outstanding balance on the credit facility was $14.0 million, including accrued interest. On 22 February 2022, the Group entered into a loan agreement with Landsbankinn hf. for a principal amount of $3.2 million. The loan is in place to help finance equipment purchases. Per the terms of the loan agreement, annuity payments are due monthly with a final maturity in February 2029. The loan has a variable interest rate of USD SOFR plus a margin of 4.25%. As of 31 December 2022, the outstanding balance on the loan was $2.9 million, including accrued interest. On 8 August 2022, the Group entered into a loan agreement with Landsbankinn hf. for a principal amount of $1.8 million. The loan is in place to help finance equipment purchases. Per the terms of the loan agreement, annuity payments are due monthly with a final maturity in August 2029. The loan has a variable interest rate of USD SOFR plus a margin of 4.25%. As of 31 December 2022, the outstanding balance on the loan was $1.8 million, including accrued interest. Movements in the Group’s outstanding borrowings during the years ended 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Borrowings, net at 1 January 400,911 567,899 Borrowings converted to equity — (105,501 ) Redemption of borrowings — (34,899 ) Paid payment-in-kind — (19,200 ) Premium on redeemed and unredeemed bonds — 15,472 Change in fair value upon extinguishment of convertible shareholder loans — 32,114 Recognition of deferred debt issue costs (2,889 ) — Accretion/derecognition of borrowings discount 35,065 5,506 Recognition of new borrowings discount (43,241 ) (34,302 ) Proceeds from new borrowings 467,196 114,282 Loans from related party converted to equity (50,000 ) (240,542 ) Repayments of borrowings (83,951 ) (2,597 ) Accrued interest 40,424 89,958 Amortization of deferred debt issue costs 23 12,754 Foreign currency exchange difference 1,032 (33 ) Borrowings, net at 31 December 764,570 400,911 The weighted-average interest rates of outstanding borrowings for the years ended 31 December 2022, 2021, and 2020 are 12.41%, 14.83% and 14.85%, respectively. Contractual maturities of principal amounts on the Group’s outstanding borrowings as of 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Within one year 19,916 2,771 Within two years 3,804 2,920 Within three years 696,646 622 Within four years 3,374 394,222 Thereafter 40,830 376 764,570 400,911 |
Long-Term Incentive Plans
Long-Term Incentive Plans | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Longterm incentive plans [Abstract] | |
Long-term incentive plans | 21. Long-term incentive plans Share appreciation rights Prior to 2019, the Group granted SARs to three former employees. During the year ended 31 December 2020 and 2019, the Group granted SARs to one and two current employees, respectively. There were new granted SARS in the years ended 31 December 2022 and 2021. Settlement of SARs In connection with the closing of the Business Combination, the Company reached a settlement agreement for share appreciation rights previously awarded to certain current and former employees. The rights were settled as follows: • two former employees will each receive 1,755,291 Ordinary Shares to be issued one year after the Closing Date. In accordance with IFRS 2, the settlements were accounted for as a modification of a share-based payment transaction that changes the awards classification from cash-settled to equity-settled; • one former employee will receive a $1.5 million cash payment in July 2022; and • one current employee can elect to receive a cash payment of $1.5 million or 150,000 Ordinary Shares to be issued one year after the Closing Date. The Company recognized the cash settlement option as a liability with a fair value of $0.8 million and the share settlement option as equity with a fair value of $0.7 million. The settlement agreements resulted in a net $36.8 million decrease in the SARs liability, a $ 31.0 million increase in equity equal to the fair value of the Ordinary Shares issued to the two former employees and potentially issued to one current employee, a $1.5 million increase in other current liabilities and income of $4.3 million in general and administrative expense recognized for the difference between the extinguished liabilities and the fair value of consideration paid to the current and former employees. As of 31 December 2022, the Company recognized $0.7 million as an other current liability related to the remaining SARs liability. Significant assumptions used in the Finnerty model to determine the fair value of the Ordinary Shares to be issued for the settlement as of 15 June 2022 are as follows: 15 June 2022 Asset price $ 9.38 Term (years) 1 year Volatility rate 35.0 % Dividend yield 0.0 % Indicated put option value $ 0.75 Discount for lack of marketability 8.0 % The asset price is based on the public trading price of Ordinary Shares at the time of the settlement. The term is based on when the holder’s will no longer be restricted from trading the Ordinary Shares. The volatility rate is based on historical data from a peer group of public companies with an enterprise value between $500 million and $5 billion. The dividend yield is based on the expected dividends to be paid out by the Company. The discount for lack of marketability reflects the timing of when the shares will be issued and can be traded by the holders. On 1 December 2022, the Company issued Ordinary Shares to settle the remaining outstanding SARs. The vested portion of the Group’s SARs liability as of the settlement date was $3.8 million. The Ordinary Shares granted for the settlement will be delivered in June 2023. As a result, management recognized a gain of $0.3 million on the extinguishment of the SARs liability resulting from the difference in the carrying value of the liability and fair value of the Ordinary Shares issued. Historical SARs Accounting The Group’s SAR liability as of 31 December 2021 totaled $41.4 million. Expense recognized for the Group’s SAR liability for the years ended 31 December 2021 and 2020 totaled $11.3 million and $7.8 million, respectively. The vested portion of the Group’s SAR liability as of 31 December 2021 is $36.6 million. Significant assumptions used in the Black-Scholes-Merton pricing model as of 31 December 2021 and 2020 are as follows: 2021 2020 Risk-free interest rate 0.1 % 0.1 % Volatility rate 42.0 % 42.0 % Expected dividend yield 0.0 % 0.0 % Expected life 0.4 – 1.0 years 1.0 – 1.2 years Share price at valuation $ 1,806 $ 1,465 Strike price $ 925 - $1,695 $ 904 - $1,296 The risk-free interest rate is the continuously compounded risk-free rate for a one-year zero-yield Employee incentive plan Movements in the Group’s employee incentive plan liabilities during the years ended 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Balance at 1 January 14,935 10,501 Additions 5,075 6,648 Payments (7,693 ) (2,214 ) Balance at 31 December prior to reclassification 12,317 14,935 Reclassified to other current liabilities (11,773 ) — Balance at 31 December 544 14,935 |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Share Based Payment Arrangements [Abstract] | |
Share-based payments | 22. Share-based payments On 1 December 2022, the Renumeration Committee authorized and the Group granted restricted stock units (“RSUs”) to employees, executives, and directors granting rights to Ordinary Shares once vesting conditions are met. Compensation expense for RSUs is determined based upon the market price of the Ordinary Shares underlying the awards on the date of grant and expensed over the vesting period, which is generally a one to four-year period, with a 1-year RSUs Weighted Granted 7,659,049 $ 6.68 Vested (679,563 ) $ 6.30 Outstanding at 31 December 6,979,486 $ 6.72 The Group recognized $10.3 million of share-based payment expense during the year ended 31 December 2022 (in thousands): 2022 Cost of product revenue 1,522 Research and development expenses 2,994 General and administrative expenses 5,801 10,317 |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2022 | |
Litigation [Abstract] | |
Litigation | 23. Litigation In 2022, prior to the issuance date of these consolidated financial statements, the Group was involved in four litigations (all now dismissed) in the United States adverse to AbbVie arising out of the development of Alvotech’s AVT02 product, and the filing of a biologics license application with the U.S. Food and Drug Administration seeking regulatory approval (the “AbbVie Litigations”). On 19 March 2021, AbbVie Inc. and AbbVie Biotechnology Ltd. (collectively, “AbbVie”) filed an action against Alvotech hf. in the United States District Court for the Northern District of Illinois alleging trade secret misappropriation under the Defend Trade Secrets Act and under the Illinois Trade Secrets Act. The complaint pleaded, among other things, that Alvotech hired a certain former AbbVie employee in order to acquire and access trade secrets belonging to AbbVie. In October 2021, the Court granted Alvotech’s motion to dismiss the action, and AbbVie later appealed that ruling to U.S. Court of Appeals for the Seventh Circuit. On 17 December 2021, AbbVie Inc., AbbVie Biotechnology Ltd, and AbbVie Operations Singapore Pte. Ltd. filed a complaint with the U.S. International Trade Commission against Alvotech hf., Alvotech Germany GmbH, Alvotech Swiss AG, Alvotech USA Inc., Teva Pharmaceutical Industries Ltd., Teva Pharmaceuticals USA Inc., and Ivers-Lee AG (Certain Adalimumab, Processes for Manufacturing or Relating to Same, and Products Containing Same, Investigation No. 337-TA-1296). The complaint raised trade secret misappropriation allegations similar to those raised in the trade secret litigation that AbbVie previously filed in the Northern District of Illinois. On 27 April 2021, AbbVie filed an action against Alvotech hf. in the United States District Court for the Northern District of Illinois alleging infringement of four patents, under the patent laws of the United States. On 28 May 2021, AbbVie filed another action against Alvotech hf. in the United States District Court for the Northern District of Illinois alleging infringement of 58 patents, under the patent laws of the United States, the BPCIA, and the Declaratory Judgment Act, and later added two more patents. As of 31 December 2022, the AbbVie Litigations were dismissed. On 8 March 2022, Alvotech entered into the AbbVie U.S. Agreement with AbbVie Inc. and AbbVie Biotechnology Ltd with respect to AVT02 for the U.S. market. Pursuant to the settlement component of the AbbVie U.S. Agreement, the parties agreed to stipulate to the dismissal of all claims, counterclaims and potential claims in the four U.S. litigations, with each party to bear its own fees and costs. The parties further agreed to release each other from certain claims and demands. Under the licensing component of the AbbVie U.S. Agreement, AbbVie granted Alvotech a license effective 1 July 2023 to make, import, use, distribute, sell and offer for sale AVT02 in the U.S. and a license to manufacture, import and store a reasonable amount of AVT02 in anticipation of the commercial launch of AVT02 in the U.S. Under the agreement, Alvotech may sublicense certain rights to Teva, as a commercialization partner, and may also sublicense to other parties subject to certain conditions. In return, Alvotech is obligated to pay a royalty to AbbVie in the single digits of the net sales of AVT02 in the U.S. The agreement does not provide for upfront or milestone payments. The obligation of Alvotech to pay royalties shall terminate on the earlier of (i) 11 February 2025; or (ii) a determination that licensed patents are invalid or unenforceable, at which time the license granted will be deemed fully paid up and irrevocable. Each party has the right to terminate the agreement upon breach of certain terms of the agreement that remains uncured for a certain period of time. Additionally, AbbVie may terminate the agreement if Alvotech takes certain actions concerning the patentability, validity or enforceability of AbbVie’s patents in the U.S. with respect to AVT02. The Group incurred approximately $8.7 million, $13.5 million and $7.9 million in legal expenses during the years ended 31 December 2022, 2021, and 2020, respectively, in preparation for, and/or in relation to, these litigations. Aside from these matters, the Group is not currently a party to any material litigations or similar matters. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions [abstract] | |
Related Parties | 24. Related parties Related parties are those parties which have considerable influence over the Group, directly or indirectly, including a parent company, owners or their families, large investors, key management personnel and their families and parties that are controlled by or dependent on the Group, such as affiliates and joint ventures. Key management personnel include the Group’s executive officers and directors, since these individuals have the authority and responsibility for planning, directing and controlling the activities of the Group. Interests in subsidiaries are set out in Note 1. Transactions with related parties A related party transaction is a transfer of resources, services or obligations between the Group and a related party, regardless of whether a price is charged. The Group engages with related parties for both purchased and sold services, loans and other borrowings and other activities. The Group entered into two lease agreements with Fasteignafélagið Sæmundur hf. in January 2019 and October 2020 for facilities in Iceland, both with remaining lease terms of approximately 17 years as of 31 December 2021. The Group also entered into ten separate lease agreements with HRJAF ehf. throughout 2019 and 2020 for a group of apartment buildings in Iceland used for temporary housing of employees and third party contractors. Two of the leases were terminated during the year ended 31 December 2020. The group extinguished the lease agreements with Sæmundur hf. as a result of the Share Purchase Agreement (see Note 12). The remaining lease terms for the other eight leases approximate 8 years, on average, as of 31 December 2022. The Group provides and receives certain support services through arrangements with Aztiq, Alvogen and Alvogen Malta (Outlicensing) Ltd. (Adalvo). Services provided to Alvogen consist of finance, administrative, legal and human resource services. Services received from Alvogen primarily consist of marketing, salary processing and information technology support services. Services received from Adalvo primarily consist of legal, regulatory, supply chain management and portfolio and market intelligence services. Purchased service includes rental fees and service expenses, as described above. Rental fees and service expenses with related parties are presented as “General and administrative expenses” or “Research and development expenses” in the consolidated statements of profit or loss and other comprehensive income or loss, depending on the nature of the service performed and expense incurred by the Group. Rental liabilities from lease arrangements with related parties are presented as a component of “Lease liabilities” on the consolidated statements of financial position. Service payables are presented as “Liabilities to related parties” on the consolidated statements of financial position. Interest includes interest expense on borrowings. Interest expenses on loans from related parties are presented as “Finance costs” in the consolidated statements of profit or loss and other comprehensive income or loss. Borrowings are presented as “Borrowings” and “Current maturities of borrowings” on the consolidated statements of financial position. See Note 20 for further details on the Borrowing arrangements with related parties. Sold service includes services provided to related parties, as described above. Income from related parties for such services are presented as “Other income” in the consolidated statements of profit or loss and other comprehensive income or loss. Amounts receivable for such activities are presented as “Receivables from related parties” on the consolidated statements of financial position. The Group has not recorded bad debt provisions for its receivables from related parties. Related party transactions as of and for the year ended 31 December 2022 are as follows (in thousands): Purchased service / Sold service Receivables Payables/ Alvogen Lux Holdings S.à r.l. – Sister company (a) 5,415 — — 64,588 Aztiq Fjárfestingar ehf. (a) 216 — — 20 Aztiq Consulting ehf. 442 — — 25 ATP Holdings ehf. (e) 1,254 — 765 81,254 Fasteignafélagið Sæmundur hf. - Sister 7,189 — — — Fasteignafélagið Eyjólfur hf. - Sister — 196 — — Alvogen Iceland ehf. - Sister company 465 174 — 484 Alvogen ehf. - Sister — 68 1 — Lotus Pharmaceuticals Co. Ltd. - Sister — 3 2 7,440 Lotus International Pte. Ltd. - Sister — 4 3 — Alvogen Emerging Markets - Sister 98 — — — Alvogen Korea co. Ltd - Sister — 1 — — Alvogen Inc. - Sister 585 266 12 222 Alvotech & — — 758 — Adalvo Limited – Sister company 1,218 106 — 349 Alvogen Malta Sh. Services - Sister 603 — 7 — Alvogen Spain SL - Sister 117 — — — Norwich Clinical Services Ltd - Sister 301 — — 31 Alvogen Pharma Pvt Ltd - Sister 1,159 — — — Flóki Fasteignir ehf. (HRJÁF ehf.) - Sister 1,516 — — 8,876 L41 ehf. 26 — — — Lambahagavegur 7 ehf. (d) 537 — — — 21,141 818 1,548 163,289 (a) The full amount of purchased service relates to interest expenses from long-term liabilities and the full amount of payables / loans are interest-bearing long-term liabilities (see Note 20). (b) Payables to Lotus Pharmaceuticals Co. Ltd. consists of the long-term liability as further described in Note 2. This long-term liability is presented as “Other long-term liability to related party” on the consolidated statements of financial position. (c) The amount receivable from Alvotech & CCHN Biopharmaceutical Co., Ltd. relates to amounts due for reference drugs used in research and development studies and certain consulting fees incurred by the Group. (d) Lambahagavegur is no longer a related party as it was sold during the year ended 31 December 2022. (e) Fasteignafélagið Sæmundur hf. was acquired as part of the Share Purchase Agreement, with ATP Holdings ehf., on 16 November 2022. The related party transactions reflect activity until the acquisition date. See Note 12 and Note 20 for further details. Related party transactions as of and for the year ended 31 December 2021 are as follows (in thousands): Purchased service / Sold Receivables Payables/ Alvogen Lux Holdings S.à r.l. – Sister company (a) 9,383 — — — Aztiq Pharma Partners S.à r.l. – Sister company (a) 16,048 — — — Alvogen Aztiq AB – Sister company (a) 297 — — 43 Aztiq Fjárfestingar ehf. (a) 120 — — — Aztiq Investment Advisory AB (a) — — 2 — Fasteignafélagið Sæmundur hf. – Sister company 7,762 — — 83,770 Alvogen Iceland ehf. – Sister company 454 2,308 109 14 Alvogen ehf. – Sister company 6 2 2 — Alvogen UK – Sister company 299 — 17 — Lotus Pharmaceuticals Co. Ltd. – Sister company (b) — 312 295 7,440 Alvogen Emerging Markets – Sister company 238 — — 16 Alvogen Korea co. Ltd – Sister company — 9 — — Alvogen Inc. – Sister company 89 654 301 — Alvotech & — — 320 — Alvogen Malta Sh. Services – Sister company 1,216 151 — 283 Alvogen Malta (Outlicensing) Ltd – Sister company 1,045 279 65 229 Alvogen Spain SL – Sister Company 294 — — 23 Norwich Clinical Services Ltd – Sister Company 41 — — 17 Alvogen Pharma Pvt Ltd – Sister Company 491 — — 13 HRJAF ehf – Sister company 1,415 — — 9,794 L41 ehf. 29 — — — Lambahagavegur 7 ehf. 713 — — 12,661 39,940 3,715 1,111 114,303 (a) The full amount of purchased service relates to interest expenses from long-term liabilities and the full amount of payables / loans are interest-bearing long-term liabilities (see Note 20). (b) Payables to Lotus Pharmaceuticals Co. Ltd. consists of the long-term liability as further described in Note 2. This long-term liability is presented as “Other long-term liability to related party” on the consolidated statements of financial position. (c) The amount receivable from Alvotech & Related party transactions for the year ended 31 December 2020 are as follows (in thousands): Purchased service / Sold Alvogen Lux Holdings S.à r.l. – Sister company (a) 9,452 1,134 Aztiq Pharma Partners S.à r.l. – Sister company (a) 19,471 — Fasteignafélagið Sæmundur hf. – Sister company 8,111 — Alvogen Iceland ehf. – Sister company 2,268 1,310 Alvogen ehf. – Sister company 40 — Alvogen UK – Sister company 1,153 — Lotus Pharmaceuticals Co. Ltd. – Sister company (b) 3,060 — Alvogen Emerging Markets – Sister company 68 — Alvogen Inc. – Sister company 67 — Alvogen PB R&D LLC — 7 Alvogen Malta Operations Ltd – Sister company 239 — Alvogen Malta Group Services – Sister company 478 — Alvogen Malta Sh. Services – Sister company 101 — Alvogen Malta LTD – Sister company — 4 Alvogen Malta (Outlicensing) Ltd – Sister company 142 185 Alvogen Spain SL – Sister Company 132 — Norwich Clinical Services Ltd – Sister Company 92 — Alvogen Pharma Pvt Ltd – Sister Company 218 — HRJAF ehf – Sister company 1,083 — 46,175 2,640 (a) The full amount of purchased service relates to interest expenses from long-term liabilities and the full amount of payables / loans are interest-bearing long-term liabilities (see Note 20). (b) Payables to Lotus Pharmaceuticals Co. Ltd. consists of the long-term liability as further described in Note 2. This long-term liability is presented as “Other long-term liability to related party” on the consolidated statements of financial position. Commitments and guarantees The Group does not have any contractual commitments with its related parties other than the receivables, loans and payables previously disclosed. Key management personnel At 31 December 2022 and 2021 there are no loans to the members of the Board of Directors and the CEO. In addition, there were no transactions carried out (except those in Note 24) between the Group and members of the Board of Directors nor the CEO in the year ended 31 December 2022 and 2021. The Board of Directors’ remuneration is shown in the table below. Board of Directors’ fee for the year and shares at year end (board 2022 Board fees Pension Shares at year-end** Robert Wessman, Chairman of the board 740 — — Richard Davi e 68 — 1,133,131 Ann Merchant, Board Member (from 16.6.2022) 43 — Árni Harðarson, Board Member (from 16.6.2022)* — — — Faysal Kalmoua, Board Member* — — — Linda McGoldrick, Board Member (from 16.6.2022) 38 — — Lisa Graver, Board Member (from 16.6.2022) 38 — — Tomas Ekman, Board Member* — — — Hirofumi Imai, Board member (until 16.6.2022) — — — 927 — 1,133,131 * Waived their board compensation (both cash and equity). ** Direct share ownership 2022 Key employees Salaries and Pension Termination Other long- Mark Levick CEO 892 162 1,157 — Other Executive Team Members (9) 5,400 446 820 5,015 6,292 608 1,977 5,015 Board of Directors’ fee for the year and shares at year end (board fees in thousands and shares in whole amounts). 2021 Board Pension Shares at year-end** Robert Wessman, Chairman of the board — — — Richard Davi e — — 893,060 Faysal Kalmoua, Board Member* — — — Tomas Ekman, Board Member* — — — Hirofumi Imai, Board member — — — Tanya Zharov (from 23.8.2021)* — — — — — 893,060 * Waived their board compensation (both cash and equity). ** Direct share ownership 2021 Key employees Salaries and Pension Termination Other long- Mark Levick CEO 877 159 — — Other Executive Team Members (9) 4,531 333 — 985 5,408 492 — 985 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Current Liabilities [Abstract] | |
Other current liabilities | 25. Other current liabilities The composition of other current liabilities as of 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Unpaid salary and salary related expenses 15,620 10,235 Accrued interest 2,249 7,547 Accrued payable to Biosana — 7,500 Accrued vacation leave 5,025 4,626 Employee incentive plan 12,433 — Accrued expenses 18,720 12,104 54,047 42,012 |
Interests In Joint Ventures
Interests In Joint Ventures | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of joint ventures [abstract] | |
Interests in joint ventures | 26. Interests in joint ventures In September 2018, Alvotech hf., a subsidiary of the Group, entered into a joint venture agreement with Changchun High & New Technology Industries (Group) Inc. (the “joint venture partner”) to form a newly created joint venture entity, Alvotech & CCHN Biopharmaceutical Co., Ltd. (the “joint venture” or “JVCO”). The purpose of the JVCO is to develop, manufacture and sell biosimilar products in the Chinese market. The JVCO’s place of business is also the country of incorporation. Name of entity Place of Ownership interest Carrying Amount 2022 2021 2022 2021 Alvotech & CCHN Biopharmaceutical Co., Ltd. China 50 % 50 % 48,568 55,307 The proportion of ownership interest is the same as the proportion of voting rights held by the Group. Management evaluated whether the Group’s voting rights are sufficient for providing a practical ability to direct the relevant activities and strategic objectives of JVCO unilaterally. As the Group does not hold a majority of the voting rights, the Group does not control JVCO. As a result, the Group’s investment in JVCO is accounted for using the equity method. The following table provides the change in the Group’s investment in a joint venture during the years ended 31 December 2022 and 2021 (in thousands): 2022 2021 Balance at 1 January 55,307 56,679 Share in losses (2,590 ) (2,418 ) Translation difference (4,149 ) 1,046 Balance at 31 December 48,568 55,307 The tables below provide summarized financial information for the JVCO. The information disclosed reflects the amounts presented in the financial statements of the JVCO and not the Group’s share of those amounts. They have been amended to reflect adjustments made by the Group when using the equity method, including fair value adjustments and modifications for differences in accounting policy. Summarized Statements of Financial Position (in thousands) 2022 2021 Current assets Cash and bank balances 17,203 29,659 Trade receivables — 15 Inventories 250 18 Other current assets 1,539 1,372 Total current assets 18,992 31,064 Total non-current 107,487 94,525 Current liabilities Financial liabilities 145 — Other current liabilities 14,129 12,156 Total current liabilities 14,274 12,156 Total non-current 15,069 2,820 Net assets 97,136 110,613 Reconciliation to carrying amounts (in thousands): 2022 2021 Opening net assets at 1 January 110,613 113,061 Loss for the year (5,180 ) (4,836 ) Other comprehensive income — — Cash contributions of owners — — Receivable from owners — — Dividends paid — — Other, net (8,297 ) 2,388 Closing net assets at 31 December 97,136 110,613 Group’s share in % 50 % 50 % Group’s share in USD 48,568 55,307 Carrying amount 48,568 55,307 Summarized Statements of Profit or Loss & 2022 2021 2020 Revenue Interest income — 433 — 1,295 — 2,518 Depreciation and Amortization 829 210 26 Interest expense 151 — — Income tax expense — — — Other expenses 4,633 5,920 4,844 Exchange rate differences — 1 658 Loss for the year (5,180 ) (4,836 ) (3,010 ) Other comprehensive income — — — Total comprehensive loss (5,180 ) (4,836 ) (3,010 ) Dividends received from joint venture entity — — — The Group did not receive any dividends from JVCO during the years ended 31 December 2022, 2021, and 2020. The Group had a $ 5.0 million commitment to provide a cash contribution to JVCO as of 31 December 2019, which was paid during the year ended 31 December 2020. Similarly, the joint venture partner had a $50.0 million commitment to provide a cash contribution to JVCO as of 31 December 2019, which was also paid during the year ended 31 December 2020. The Group does not have any remaining commitments to JVCO as of 31 December 2022 and 2021 . Furthermore, the Group does no t have any contingent liabilities relating to its interests in JVCO as of 31 December 2022 or 2021. While there are no significant restrictions resulting from contractual arrangements with JVCO, entities in China are subject to local exchange control regulations. These regulations provide for restrictions on exporting capital from those countries, other than dividends. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments | 27. Financial instruments Accounting classification and carrying amounts Financial assets as of 31 December 2022 and 2021, all of which are measured at amortized cost, are as follows (in thousands): 2022 2021 Cash and cash equivalents 66,427 17,556 Restricted cash 25,187 10,087 Trade receivables 32,972 29,396 Other current assets 5,880 14,518 Receivables from related parties 1,548 1,111 Other long-term assets 4,484 — 136,498 72,668 Financial liabilities as of 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Borrowings (measured at amortized cost) 764,570 400,911 Derivative financial liabilities (measured at FVTPL) 380,232 — Other long-term liability to related party (measured at amortized cost) 7,440 7,440 Long-term incentive plan (measured at FVTPL) 544 56,334 Trade and other payables (measured at amortized cost) 49,188 28,587 Lease liabilities (measured at amortized cost) 40,532 122,140 Liabilities to related parties (measured at amortized cost) 1,131 638 Other current liabilities 53,664 42,012 1,297,301 658,062 It is management’s estimate that the carrying amounts of financial assets and financial liabilities carried at amortized cost approximate their fair value, with the exception of the Senior Bonds, since any applicable interest receivable or payable is either close to current market rates or the instruments are short-term in nature. Material differences between the fair values and carrying amounts of these borrowings are identified as follows (in thousands): At 31 December 2022 Carrying Amount Fair Value Senior Bonds 530,506 535,167 At 31 December 2021 Carrying Amount Fair Value Bonds 363,100 368,476 Fair value measurements The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments measured to fair value on a recurring basis as of 31 December 2022 (in thousands): 2022 Level 1 Level 2 Level 3 Total Senior Bond Warrants — — 45,325 45,325 Tranche A Conversion Feature — — 38,055 38,055 Senior Bond Interest Rate Feature (included in other current assets) — — 851 851 Predecessor Earn Out Shares — 276,200 — 276,200 OACB Earn Out Shares — 10,500 — 10,500 OACB Warrants 10,152 — — 10,152 10,152 286,700 84,231 381,083 The Group did not recognize any transfers of assets or liabilities between levels of the fair value hierarchy during the years ended 31 December 2022, 2021, and 2020. The Group recognized derivative financial liabilities related to the equity conversion rights in the convertible bonds as well as the equity conversion rights, warrant rights and funding rights in the convertible shareholder loans as of 31 December 2020. These derivative financial liabilities were extinguished during the year ended 31 December 2021. Refer to Note 20 for additional details on the extinguishment. Tranche A Conversion Feature As noted in Note 20, in connection with the Convertible Bonds the Group classified the Tranche A Conversion Feature as an embedded derivative liability due to the variability created by conversion rates resulting from the tranche being denominated in ISK. The conversion feature had a fair value of $24.9 million and $38.1 million as of 20 December 2022 and 31 December 2022, respectively. The change in fair resulted in $13.2 million of finance costs for the year ended 31 December 2022. The fair value of the Tranche A Conversion Feature was determined using a lattice model that incorporated inputs and assumptions as further described below. The inputs and assumptions associated with the valuation of the instruments are determined based on all relevant internal and external information available and are reviewed and reassessed at each reporting date. The following table presents the assumptions and inputs that were used for the model in valuing the Tranche A Conversion Feature: 31 December 20 December Stock price Conversion price Volatility rate $ $ 10.00 10.00 45.0 % $ $ 8.00 10.00 45.0 % Risk-free interest rate 4.2 % 4.0 % Dividend yield 0.0 % 0.0 % Risky yield 19.3 % 18.6 % Senior Bond Warrants As part of the Senior Bonds agreement (see Note 20), the Group agreed to issue penny warrants to the Bondholders that are issuable if certain events occur. The contingently issuable Senior Bond Warrants include two tranches: • One tranche representing 1.5% of the fully diluted ordinary share capital if the aggregate amount of the net proceeds of all new equity issuances received by the Company on or before 15 December 2022 is less than $75.0 million, as defined in the Senior Bonds agreement. • One tranche representing 1.0% of the fully diluted ordinary share capital if the aggregate amount of the net Proceeds of all new equity issuances received by the Company on or before 31 March 2023 is less than $150.0 million, as defined in the Senior Bonds agreement. The Senior Bond Warrants are accounted for as derivative financial liabilities in accordance with IFRS 9 and IAS 32 and will be subject to ongoing mark-to-market adjustments through the consolidated statement of profit or loss and other comprehensive income or loss. The Senior Bond Warrants had a fair value of million on 16 November 2022. The fair value was determined using the Finnerty model along with the publicly quoted trading price of Ordinary Shares and probability of the contingent events occurring at the valuation date. Probabilities associated with the instruments are determined based on all relevant internal and external information available and are reviewed and reassessed at each reporting date. On 31 December 2022, the Company issued 4,198,807 warrants, with an exercise price of $0.01, representing the first tranche of Senior Bond Warrants. The issued warrants, along with the remaining tranche of contingently issuable warrants had a fair value of $45.3 million as of 31 December 2022. The Group recognized $29.9 million in finance costs resulting from the change in fair value of the Senior Bond Warrants. Predecessor Earn Out Shares As part of the Business Combination, Predecessor shareholders were granted a total of 38,330,000 Ordinary Shares subject to certain vesting conditions (“Predecessor Earn Out Shares”). One half ten twenty other half ten twenty trading day period. The Predecessor Earn Out Shares are accounted for as derivative financial liabilities in accordance with IAS 32 and will be subject to ongoing mark-to-market adjustments through the consolidated statement of profit or loss and other comprehensive income or loss. The Predecessor Earn Out Shares had a fair value of The fair value of the Predecessor Earn Out Shares was determined using Monte Carlo analysis that incorporated inputs and assumptions as further described below. The inputs and assumptions associated with the valuation of the instruments are determined based on all relevant internal and external information available and are reviewed and reassessed at each reporting date. The following table presents the assumptions and inputs that were used for the model in valuing the Predecessor Earn Out Shares: 31 December 15 June Share price $ 10.00 $ 9.38 Volatility rate 45.0 % 37.5 % Risk-free rate 4.1 % 3.4 % OACB Earn Out Shares Former OACB shareholders were granted a total of 1,250,000 Ordinary Shares subject to certain vesting conditions (“OACB Earn Out Shares”). One half ten twenty half per share. The OACB Earn Out Shares are accounted for as derivative financial liabilities in accordance with IAS 32 and will be subject to ongoing mark-to-market adjustments through the consolidated statement of profit or loss and other comprehensive income or loss. The OACB Earn Out Shares had a fair value of The fair value of the OACB Earn Out Shares was determined using a Monte Carlo analysis that incorporated inputs and assumptions as further described below. Assumptions and inputs associated with the valuation of the instruments are determined based on all relevant internal and external information available and are reviewed and reassessed at each reporting date. The following table presents the assumptions and inputs that were used for the model in valuing the OACB Earn Out Shares: 31 December 15 June Share price $ 10.00 $ 9.38 Volatility rate 45.0 % 37.5 % Risk-free rate 4.1 % 3.4 % OACB Warrants Additionally, as part of the Business Combination the Company assumed the 10,916,647 outstanding OACB Warrants, on substantially the same contractual terms and conditions as were in effect immediately prior to the Business Combination , including an exercise price of $11.50. mark-to-market Convertible shareholder loans The fair value of the derivatives associated with the convertible shareholder loans was $485.9 million and $534.7 million at 7 December 2021, the date of extinguishment (refer to Note 20 for additional details) and 31 December 2020. Changes in the fair value of the financial instruments during the period are recognized in the consolidated statements of profit or loss and other comprehensive income or loss. The fair value of the derivatives associated with the convertible shareholder loans on 7 December 2021 was determined based on the number of shares to be issued at the closing of the Business Combination Agreement multiplied by OACB stock price ($9.86). In aggregate, the fair value of the derivative liabilities associated with the convertible shareholder loans and convertible bonds at 31 December 2019 was $479.3 million. In 2020, the fair value of the derivative liabilities increased by $55.4 million, resulting in derivative liabilities of $534.7 million at 31 December 2020. In 2021, the fair value of the financial instruments decreased by $48.8 million, resulting in derivative liabilities of $485.9 million at 7 December 2021, the date of extinguishment. Included in the changes in fair value of the derivative liabilities is the amortization of a deferred loss associated with the recognition of funding rights at the inception of the convertible shareholder loan with Aztiq. Specifically, at inception, the fair value of the funding rights, determined using unobservable inputs, exceeded the transaction price by $15.0 million. The deferred loss was recognized over the 5-year Capital management The capital structure of the Group consists of equity, debt and cash. For the foreseeable future, the Board of Directors will maintain a capital structure that supports the Group’s strategic objectives through managing the budgeting process, maintaining strong investor relations and managing the financial risks of the Group, as further described below. No changes were made in the objectives, policies or processes for managing capital during the years ended 31 December 2022, 2021 and 2020. Financial risk management The Group’s corporate treasury function provides services across the organization, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the Group’s operations through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk and interest rate risk), credit risk and liquidity risk. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of fluctuations in market interest rates primarily relates to the cash in bank that is subject to floating interest rates. The following table provides an interest rate sensitivity analysis for the effect on loss before tax (in thousands): 2022 2021 Variable-rate financial liabilities +100 (186 ) (65 ) Variable-rate financial liabilities -100 186 65 Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group’s exposure to currency risk arises from financial assets and financial liabilities denominated in other currencies than the presentation currency of the Group. Below are the foreign currencies that have the most significant impact on the Group’s operations. Closing rate Average rate Change 2022 2021 2022 2021 EUR 1.061 1.133 1.052 1.183 (6.4 %) GBP 1.204 1.350 1.233 1.376 (10.8 %) ISK 0.007 0.008 0.007 0.008 (8.3 %) CHF 1.071 1.094 1.047 1.094 (2.1 %) INR 0.012 0.013 0.013 0.014 (10.1 %) The Group’s assets and liabilities that are denominated in foreign currencies as of 31 December 2022 are as follows (in thousands): Assets Liabilities Net EUR 36,420 26,514 9,906 GBP 111 1,538 (1,427 ) ISK 49,484 109,507 (60,023 ) CHF 69 7,305 (7,236 ) INR 11 517 (506 ) The Group’s assets and liabilities that are denominated in foreign currencies as of 31 December 2021 are as follows (in thousands): Assets Liabilities Net assets EUR 31,718 15,720 15,998 GBP 180 673 (493 ) ISK 5,421 148,747 (143,326 ) CHF 715 7,305 (6,590 ) A reasonable possible strengthening or weakening of the Group’s significant foreign currencies against the USD would affect the measurement of financial instruments denominated in a foreign currency and affect equity by the amount shown in the sensitivity analysis table below. The analysis assumes that all other variables, such as interest rates, remain constant. EUR GBP ISK CHF INR Year ended 31 December 2022 -10% weakening (991 ) (143 ) (6,002 ) (724 ) (51 ) +10% strengthening 991 143 6,002 724 51 Year ended 31 December 2021 -10% weakening (1,600 ) (49 ) (14,333 ) (659 ) N/A +10% strengthening 1,600 49 14,333 659 N/A Credit risk Credit risk it the risk that a counterparty will not fulfill its contractual obligations under a financial instrument contract, leading to a financial loss for the Group. The maximum credit risk exposure for the Group’s financial assets as of 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Cash and cash equivalents 66,427 17,556 Restricted cash 25,187 10,087 Other assets 44,884 66,344 136,498 93,987 The Group’s cash and cash equivalents and restricted cash are deposited with high-quality financial institutions. Management believes these financial institutions are financially sound and, accordingly, that minimal credit risk exists. The Group has not experienced any losses on its deposits of cash and cash equivalents and restricted cash yet monitors the credit rating of these financial institutions on a periodic basis. Other assets primarily consist of other current assets, as described in Note 18, and trade receivables and contract assets recognized in connection with the Group’s performance pursuant to its contracts with customers, all of which are large multinational pharmaceutical companies. There are no significant amounts past due as of 31 December 2022 and 2021 and the Group concludes that any expected credit losses with respect to these assets is immaterial. Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Contractual maturities of financial assets and liabilities as of 31 December 2022 are as follows (in thousands): Within one One to two Thereafter Total Financial assets Non-interest 40,400 — — 40,400 Variable-interest bearing 66,427 — 29,671 96,098 Total financial assets 106,827 — 29,671 136,498 Financial liabilities Non-interest 104,366 — 7,984 112,350 Fixed-interest bearing - Borrowings 45,757 66,308 896,921 1,008,986 Derivative liabilities — — 380,232 380,232 Variable-interest bearing - Borrowings 25,259 8,036 59,109 92,404 Total financial liabilities 175,382 74,344 1,344,246 1,593,972 Contractual maturities of financial assets and liabilities as of 31 December 2021 are as follows (in thousands): Within one One to two Thereafter Total Financial assets Non-interest 29,396 — — 29,396 Variable-interest bearing 17,556 — 10,087 27,643 Total financial assets 46,952 — 10,087 57,039 Financial liabilities Non-interest 71,237 — 63,774 135,011 Fixed-interest bearing - Borrowings 16,663 33,235 500,675 550,573 Variable-interest bearing - Borrowings 3,041 3,035 1,117 7,193 Total financial liabilities 90,941 36,270 565,566 692,777 Refer to Note 13 for the maturity analysis of the Group’s undiscounted lease payments. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure In Entirety Of Supplemental Cash Flow Information [Abstract] | |
Supplemental cash flow information | 28. Supplemental cash flow information Supplement cash flow information for the year ended 31 December 2022, 2021 and 2020 is included below (in thousands). Non-cash 2022 2021 2020 Acquisition of property, plant and equipment in trade payables 4,131 3,812 — Acquisition of intangibles in trade payables and other current liabilities 4,075 — — Right-of-use 9,583 18,871 15,204 Addition of the Facility through Aztiq Convertible Bond 115,005 — — Non-cash issuance of Aztiq Convertible Bond 80,000 — — Equity issued through conversion of borrowings 32,200 346,043 30,000 Acquisition of other intangible assets through financing agreements — 461 — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Subsequent events | 29. Subsequent events The Group evaluated subsequent events through 1 March 2023, the date the consolidated financial statements were available to be issued. On 25 January 2023, the Company issued an additional $10.0 million in Tranche B Convertible Bonds. Holders of the Tranche B Convertible Bonds may elect, at their sole discretion, to convert all or part of the principal amount and accrued interest into Alvotech Ordinary Shares at a conversion price of $10.00 per share on 31 30 On 10 February 2023, the Company completed a private placement equity offering of $137.0 million, at current ISK exchange rates, of its Ordinary Shares, par value $0.01 per share, at a purchase price of $11.57 per share. The Shares are expected be delivered from previously issued ordinary shares held by Alvotech’s subsidiary, Alvotech Manco ehf. As a result of proceeds raised from the private placement offering, the Company extinguished the liability related to the Senior Bond Warrants resulting in the potential issuance of penny warrants representing 1.0 % of the fully diluted ordinary share capital (see Note 20). This will be accounted for as an extinguishment of a financial liability in the consolidated statement of profit or loss and other comprehensive income or loss. On 17 February 2023, the first tranche of OACB Earn Out Shares vested resulting in the issuance of 625,000 Ordinary Shares. The issuance of Ordinary Shares for the first tranche will be accounted for as an extinguishment of a financial liability in the consolidated statement of profit or loss and other comprehensive income or loss. On 27 February 2023, the Group and Teva signed an amendment to the license and development agreement. As part of that amendment, the Group agreed to provide future financial consideration to Teva to assist with the cost of launching and marketing the licensed biosimilar products. Subsequent to 31 December 2022, Senior Bond Warrant holders elected to exercise their warrants. As a result, 3,014,189 Ordinary Shares were issued in exchange for the exercising of the penny warrants. The Company received an immaterial amount of cash and will recognize the transaction as an extinguishment of the derivative financial liabilities. The difference between the equity issued and carrying value of the derivative financial liabilities will be recognized in the consolidated statement of profit or loss and other comprehensive income or loss. 271,150 3.1 million The Company will recognize the transaction as an extinguishment of the derivative financial liabilities. The difference between the equity issued and carrying value of the derivative financial liabilities will be recognized in the consolidated statement of profit or loss and other comprehensive income or loss. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Summary Of Significant Accounting Policies [Abstract] | |
Basis of preparation | 2.1 Basis of preparation The consolidated financial statements of the Group have been prepared in accordance and in compliance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), which comprise all standards and interpretations approved by the IASB. All amendments to IFRSs issued by the IASB that are effective for annual periods that begin on or after 1 January 2022 have been adopted as further described within the footnotes to the consolidated financial statements. The Group has not adopted any standards or amendments to standards in issue that are available for early adoption. The consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and financial liabilities which have been measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. The consolidated financial statements are presented in U.S. Dollar (USD) and all values are rounded to the nearest thousand unless otherwise indicated. |
Basis of consolidation | 2.2 Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company and its subsidiaries. Control is achieved when the Company: • has power over the investee; • is exposed, or has rights, to variable returns from its involvement with the investee; and • has the ability to use its power to affect its returns. When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including: • the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; • potential voting rights held by the Company, other vote holders or other parties; • rights arising from other contractual arrangements; and • any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statements of profit or loss and other comprehensive income or loss from the date the Company gains control until the date when the Company ceases to control the subsidiary. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. All intra-group transactions, balances, income and expenses are eliminated in full in consolidation. |
Investments in joint ventures | 2.3 Investments in joint ventures To the extent the Group concludes that it does not control, and thus consolidate, a joint venture, the Group accounts for its interest in joint ventures using the equity method of accounting. As such, investments in a joint venture are initially recognized at cost and the carrying amount is subsequently adjusted for the Group’s share of the profit or loss of the joint venture, as well as any distributions received from the joint venture. The Group carries its ownership interest in a joint venture as “Investment in joint venture” on the consolidated statements of financial position. The Group’s profit or loss includes its share of the profit or loss of the joint venture and, to the extent applicable, other comprehensive income or loss for the Group includes its share of other comprehensive income or loss of the joint venture. The Group’s share of a joint venture’s profit or loss in a particular year is presented as “Share of net loss of joint venture” in the consolidated statements of profit or loss and other comprehensive income or loss. The carrying amount of equity-accounted investments is assessed for impairment as a single asset. Impairment losses are incurred only if there is objective evidence of impairment as a result of loss events that have an impact on estimated future cash flows and that can be reliably estimated. Losses expected as a result of future events are not recognized. The Group did not recognize any impairment losses related to its investment in the joint venture for the years ended 31 December 2022, 2021 or 2020. Refer to Note 26 for additional information regarding the Group’s joint venture as of 31 December 2022 and 2021 and for the years ended 31 December 2022, 2021 and 2020. |
Critical accounting judgments and key sources of estimation uncertainty | 2.4 Critical accounting judgments and key sources of estimation uncertainty The preparation of the consolidated financial statements in conformity with IFRS requires Group management to make judgments, estimates and assumptions about the reported amounts of assets, liabilities, income and expenses that are not readily apparent from other sources. The estimates and associated assumptions are based on information available when the consolidated financial statements are prepared, historical experience and other factors that are considered to be relevant. Judgments and assumptions involving key estimates are primarily made in relation to the measurement and recognition of revenue (as described in Note 2.6 and Note 5), the measurement and recognition of extinguishment of financial liabilities (as described in Note 2.18 and Note 20), the valuation of derivative financial liabilities (as described in Note 2.18 and Note 25), the valuation of management share appreciation rights (SARs) (as described in Note 2.18 and Note 21), and the valuation of deferred tax assets (as described in Note 2.14 and Note 10). Apart from those involving estimations, critical accounting judgments include the Group’s evaluation as to whether it controls its joint venture in China (as described in Note 2.3 and 26) and material uncertainties with respect to the Group’s going concern assessment (as described in Note 1.5). Existing circumstances and assumptions may change due to events arising that are beyond the Group’s control. Therefore, actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Segment reporting | 2.5 Segment reporting The Group operates and manages its business as one operating segment based on the manner in which the Chief Executive Officer, the Group’s chief operating decision maker, assesses performance and allocates resources across the Group. |
Revenue recognition | 2.6 Revenue recognition Product revenue The Company recognizes revenue from the sale of its biosimilar product to commercial partners, identified as the customer, when control is transferred, and the performance obligations have been satisfied. This is when the title passes to the customer, which is upon shipment of the product. At that point, the commercial partner has full discretion over the channel and price to sell the products. Revenue is recognized based on the net selling price from the commercial partners, which is considered to be the transaction price and includes estimated rebates, returns and chargebacks, and other forms of variable consideration recognized by the Customer. Variable consideration is accounted for by the Company only to the extent that it is highly probable that a significant reversal in the revenue recognized will not occur. Variable consideration, which includes any adjustments to the net selling price, is estimated based on the most likely amount method on a contract-by-contract Out-licensing The majority of the Group’s revenue is generated from long-term out-license approved for commercialization. These contracts typically include the Group’s promises to continue development of the underlying compound and to provide supply of the product to the customer upon commercialization. The Group concludes that the license, development services and commercial supply are separate performance obligations. This is because customers generally have the capabilities to perform the necessary development, manufacturing and commercialization activities on their own or with readily available resources and have the requisite expertise in the industry and the territory for which the license has been granted. Further, the intellectual property is generally in a later phase of development at the time the license is granted such that any subsequent development activities performed by the Group are not expected to significantly modify or transform the intellectual property. The fact that the Group is contractually obligated to perform development activities for and provide commercial supply to the customer does not impact this conclusion. The Group’s promise to provide commercial supply to its customers is contingent upon the achievement of regulatory approval in the particular territory for which the license has been granted. The consideration to which the Group is entitled pursuant to these contracts generally includes upfront payments and payments based upon the achievement of development and regulatory milestones. All contracts include a potential refund obligation whereby the Group must refund the consideration paid by the customer in the event of a technical failure or the occurrence of certain other matters that result in partial or full cancellation of the contract. As such, the entire transaction price is comprised of variable consideration, which is estimated using the most likely amount method due to the binary nature of the outcomes under these contracts. Such variable consideration is included in the transaction price only when it is highly probable that doing so will not result in a significant reversal of cumulative revenue recognized when the underlying uncertainty associated with the variable consideration is subsequently resolved. The Group does not account for a significant financing component since a substantial amount of consideration promised by the customer is variable and the amount or timing of that consideration varies on the basis of a future event that is not substantially within the control of either party. Certain contracts also include commercialization milestones upon the first commercial sale of a product in a particular territory, as well as royalties. Commercialization milestones and royalties are accounted for as sales-based royalties; therefore, such amounts are not included in the transaction price and recognized as revenue until the underlying sale that triggers the milestone or royalty occurs. Upfront payments, when applicable, are received in advance of transferring control of all goods and services. Therefore, a portion of upfront payments is recorded as a contract liability upon receipt. Due to the existence of refund provisions, upfront payments and certain development milestone payments are generally included in the transaction price upon submission of the first clinical trial application to the respective regulatory agency, since it is at this point in time that a significant reversal of cumulative revenue recognized related to such payments is no longer highly probable. Other development and regulatory milestones may not be included in the transaction price until such milestones are achieved due to the degree of uncertainty associated with achieving these milestones. Contract liabilities are presented on the consolidated statements of financial position as either current or non-current non-current The standalone selling prices of the development services and the license to intellectual property are not directly observable and, therefore, are estimated. The standalone selling price of the development services is estimated based on the expected costs to be incurred during the development period, using various data points such as the underlying development budget, contractual milestones and performance completed at the time of entering into the contract with a customer. The standalone selling price of the license is estimated using the residual approach on the basis that the Group licenses intellectual property for a broad range of amounts and has not previously licensed intellectual property on a standalone basis. Therefore, the Group first allocates the transaction price to the development services and subsequently allocates the remainder of the transaction price to the license. If product is still in early phase development and the constraint on variable consideration has not been resolved, all the transaction price is allocated to the development service. The standalone selling price of the commercial supply is directly observable and the stated prices in the Group’s supply contracts reflect the standalone selling price of such goods. The licenses to intellectual property are right of use licenses on the basis that the ongoing development work performed by the Group does not significantly affect the intellectual property to which the customer has rights. Therefore, control of the license transfers to the customer at the point in time when the right to use the license is granted to the customer. The license is generally granted to the customer at the time the contract is executed with the customer. The Group satisfies its performance obligation related to the development services over time as the Group’s performance enhances the value of the licensed intellectual property controlled by the customer throughout the performance period. The Group recognizes revenue using a cost-based input measure since this measure best reflects the progress of the development services and, therefore, the pattern of transfer of control of the services to the customer. In certain instances, the Group may subcontract services to other parties for which the Group is ultimately responsible. Costs incurred for such subcontracted services are included in the Group’s measure of progress for satisfying its performance obligation. Changes in the total estimated costs to be incurred in measuring the Group’s progress toward satisfying its performance obligation may result in adjustments to cumulative revenue recognized at the time the change in estimate occurs. Upon the achievement of regulatory approval and the commencement of commercial sale of its products, the Group will satisfy its performance obligation related to commercial supply at the point in time when control of the manufactured product is transferred to the customer. Transfer of control for such goods will occur in accordance with the stated shipping terms. The Group does not incur incremental costs of obtaining a contract with a customer that would require capitalization. Costs to fulfill performance obligations are not incurred in advance of performance and, as such, are expensed when incurred. Other revenue Other revenue primarily consists of clinical trial support services rendered by the Group for its customers, which is recognized as the service is provided. Revenue for such services is presented in the consolidated statements of profit or loss and other comprehensive income or loss net of any discounts. |
Cost of product revenue | 2.7 Cost of product revenue Cost of product revenue includes the cost of inventory sold, labor costs, manufacturing overhead expenses and reserves for expected scrap, as well as shipping and freight costs and royalty costs related to in-license |
Research and development expenses | 2.8 Research and development expenses Research and development expenses primarily consist of personnel costs, material and other lab supply costs, facility costs and internal and external costs related to the execution of studies and other development program advancement initiatives. Such expenses also include costs incurred in preparation for commercial launch, such as designing and developing commercial-scale manufacturing capabilities and processes, quality control processes, production asset validation and other related activities. The costs also include amortization, depreciation and impairment losses related to software, property, plant and equipment, and right-of-use assets used in research and development activities and pre-commercial manufacturing and quality control activities. An internally generated intangible asset arising from the Group’s development is recognized only if the Group can demonstrate: the technical feasibility of completing the intangible asset so that it will be available for use or sale; the intent to complete the intangible asset and use or sell it; how the intangible asset will generate probable future economic benefits; the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and the ability to measure reliably the expenditure attributable to the intangible asset during its development. The amount initially recognized for internally-generated intangible assets is the sum of the expenditures incurred from the date when the intangible asset first meets the aforementioned recognition criteria. If an internally-generated intangible asset cannot be recognized, the related development expenditure is charged to profit or loss in the period in which it is incurred. 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, the Group did not capitalize any research and development expenses as internally-developed intangible assets during the years ended 31 December 2022, 2021 and 2020. |
General and administrative expenses | 2.9 General and administrative expenses General and administration expenses primarily consist of personnel-related costs, including salaries and other related compensation expense, for corporate and other administrative and operational functions including finance, human resources, information technology and legal, as well as facility-related costs. These costs relate to the operation of the business and are not related to research and development initiatives. Expenditures related to general and administration activities are recognized as an expense in the period in which they are incurred. |
Finance income and finance cost | 2.10 Finance income and finance cost Finance income consists of changes in the fair value of derivative financial liabilities and interest income. Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition. Finance cost consists of changes in the fair value of derivative financial liabilities, interest expense related to lease liabilities and borrowings, accretion of borrowings and amortization of deferred debt issue costs. |
Foreign currency translation | 2.11 Foreign currency translation The consolidated financial statements are presented in U.S. Dollars, which is the Group’s presentation currency. The Group maintains the financial statements of each entity within the Group in its respective functional currency. The majority of the Group’s expenses are incurred in U.S. Dollar and Icelandic Krona, and the majority of the Company’s cash and cash equivalents are held in a combination of U.S. Dollars and Euros. Transactions in currencies other than the Group’s presentation currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary rates prevailing at the date when the fair value was determined. Non- Exchange differences arising on translation of a foreign controlled subsidiary are recognized in other comprehensive income or loss and accumulated in a translation reserve within equity. The cumulative translation amount is reclassified to profit or loss if and when the net investment in the foreign controlled subsidiary is disposed. |
Fair value measurements | 2.12 Fair value measurements The Group measures certain financial liabilities at fair value through profit or loss (FVTPL) at each reporting period. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure the fair values of such financial liabilities, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques, as follows: • Level 1: quoted prices in active markets for identical assets and liabilities; • Level 2: inputs other than quoted prices that are observable for the asset or liability, either directly (e.g., prices) or indirectly (e.g., derived from prices); and • Level 3: inputs for the asset or liability that are unobservable. The carrying amounts of cash and cash equivalents, restricted cash, trade receivables, other current assets, contract assets, trade and other payables and accrued and other liabilities in the Group’s consolidated statements of financial position approximate their fair value because of the short maturities and nature of these instruments. For liabilities that are measured at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the fair value hierarchy by reassessing the inputs used in determining fair value at the end of each reporting period. |
Goodwill and other intangible assets | 2.13 Goodwill and other intangible assets Goodwill Acquisitions are first reviewed to determine whether a set of assets acquired constitute a business and should be accounted for as a business combination. If the assets acquired do not meet the definition of a business, the Group will account for the transaction as an asset acquisition. If the definition of a business combination is met, the Group will account for the transaction using the acquisition method of accounting. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange fo r control of the acquiree. Acquisition-related costs are recognized in the consolidated statements of profit or loss and other comprehensive income or loss as incurred. Goodwill represents the excess of the purchase price of the business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities, contingent liabilities, the amount of any noncontrolling interests in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree. Goodwill is reviewed for impairment at least annually, and whenever there is an indication that the asset may be impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. The value in use calculation is performed using discounted expected future cash flows. The discount rate applied to these cash flows is based on the weighted average cost of capital and reflects current market assessments of the time value of money. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the business combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or as additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. The Group did not complete any business combinations during the years ended 31 December 2 021, and 2020. Refer to Note 1.1 for the Business Combination completed during the year ended 31 December 2022. Other intangible assets Other intangible assets consist of software, customer relationships, and intellectual property rights licensed from Biosana (see Note 2.18). Intangible assets acquired in a business combination are identified and recognized separately from goodwill if they satisfy the definition of an intangible asset and their fair values can be reliably measured. The cost of intangible assets is their fair value at the acquisition date. Intangible assets with finite useful lives are reported at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over an asset’s estimated useful life. The estimated useful life and amortization method are reviewed at each balance sheet date, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The following useful lives are used in the calculation of amortization: Software 3-5 years Customer relationships 7 years Intangible assets with indefinite useful lives are reviewed for impairment at least annually, and whenever there is an indication that the asset may be impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. The value in use calculation is performed using discounted expected future cash flows. The discount rate applied to these cash flows is based on the weighted average cost of capital and reflects current market assessments of the time value of money. |
Income tax | 2.14 Income tax Income tax includes the current tax and deferred tax charge recorded in the consolidated statements of profit or loss and other comprehensive income or loss. Current tax The current tax expense is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the consolidated statements of profit or loss and other comprehensive income or loss because it excludes items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s current tax expense is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Accruals for tax contingencies are made when it is not probable that a tax authority will accept the tax position, based upon management’s interpretation of applicable laws and regulations and the expectation of how the tax authority will resolve the matter. Accruals for tax contingencies are measured using either the most likely amount or the expected value amount depending on which method the entity expects to better predict the resolution of the uncertainty. Deferred tax Deferred tax is provided in full for all temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit, except to the extent the temporary difference arises from: • The initial recognition of an asset or a liability in a transaction that is not a business combination and that affects neither the taxable profit nor accounting profit; • The initial recognition of residual goodwill (for deferred tax liabilities only); or • Investments in subsidiaries, branches, associates and joint ventures, where the Group is able to control the timing of the reversal of the temporary difference and it is not probable that it will reverse in the foreseeable future. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the balance sheet date, to recover or settle the carrying amount of the assets and liabilities. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is charged or credited to the consolidated statements of profit or loss and other comprehensive income or loss, except when the tax arises from a business combination or it relates to items charged or credited directly to equity, in which case the deferred tax is also taken directly to equity. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis in that taxation authority. |
Property, plant and equipment | 2.15 Property, plant and equipment Property, plant and equipment is recognized as an asset when it is probable that future economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured in a reliable manner. Property, plant and equipment which qualifies for recognition as an asset are initially measured at cost. The cost of property, plant and equipment includes an asset’s purchase price and any directly attributable costs of bringing the asset to working condition for its intended use. Depreciation is calculated and recognized as an expense on a straight-line basis over an asset’s estimated useful life. The estimated useful lives, residual values and depreciation method are reviewed at each balance sheet date, with the effect of any changes in estimate accounted for on a prospective basis. The following useful lives are used in the calculation of depreciation: Facility 40 years Facility equipment 5-20 years Computer equipment 3 years Leasehold improvements 3-15 Furniture and fixtures 5 years Certain of the Group’s property, plant and equipment assets have been pledged to secure borrowings as further described in Note 20. Significant disposals of pledged assets are subject to lender approval. Upon disposal or retirement of an asset, the difference between the sales proceeds, if applicable, and the carrying amount of the asset is recognized in the consolidated statements of profit or loss and other comprehensive income or loss at the time of disposal or retirement. At the end of each reporting period, or sooner if events triggering an interim impairment assessment occur, the Group reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that the value of such assets are impaired. Triggering events that warrant an interim impairment assessment include, but are not limited to, the technical obsolescence of equipment or failure of such equipment to meet regulatory requirements. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss and the carrying amount of the asset is reduced to its recoverable amount, which is the higher of fair value less costs of disposal and value in use. |
Inventories | 2.16 Inventories Inventories, which consist of raw materials and supplies, work in progress and finished goods are stated at the lower of cost or net realizable value. Net realizable value is the expected sales price less completion costs and costs to be incurred in marketing, selling and distributing the inventory. Cost is calculated using the weighted average cost method or the first-in, first-out Inventories include direct costs for raw materials and supplies and, as applicable, direct and indirect labor and overhead expenses that have been incurred to bring inventories to their present location and condition. See Note 17 for further details. If the net realizable value is lower than the carrying amount, a write-down of inventory is recognized for the amount by which the carrying amount exceeds net realizable value. During the years ended 31 December 2022, 2021, and 2020, write-down of inventories amounted to $2.1 million, $1.2 million and $1.3 million, respectively, due to product expiration. There were no reversals of inventory write-downs during the years ended 31 December 2022, 2021, and 2020. See Note 17 for further details. The Group does not pledge inventories as collateral to secure its liabilities. |
Financial assets | 2.17 Financial assets Recognition of financial assets Financial assets are recognized when the Group becomes a party to the contractual provisions of the instrument. Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets, other than financial assets measured at FVTPL, are added to or deducted from the fair value of the financial assets, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets at FVTPL are recognized immediately in profit or loss. There were no transaction costs related to the acquisition of financials assets in 2022, 2021 or 2020. All of the Group’s financial assets are measured at amortized cost as of 31 December 2022 and 2021. Financial assets measured at amortized cost Financial assets measured at amortized cost are debt instruments that give rise to contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. The Group’s financial assets measured at amortized cost are trade receivables, certain other current assets, receivables from related parties, restricted cash and cash and cash equivalents. Interest income is recognized by applying the effective interest rate, except for short-term receivables when the effect of discounting is immaterial. Impairment of financial assets The Group recognizes a loss allowance for expected credit losses (ECL) on its trade receivables and other debt instruments that are measured at amortized cost. In addition, although contract assets are not financial assets, a loss allowance for ECL are also recognized for such assets. ECL is based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognizes lifetime ECL for trade receivables and contract assets. The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecasted direction of conditions at the reporting date, including time value of money where appropriate. The Group writes off a financial asset when there is no reasonable expectation of recovery, such as information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. A trade receivable or contract asset that is considered uncollectible is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in profit or loss. The Group did not write off any trade receivables or contract assets during the years ended 31 December 2022, 2021, and 2020. The Group estimates impairment for related party receivables on an individual basis. No impairment is recognized for restricted cash or cash and cash equivalents as management has estimated that the effects of any calculated ECL would be immaterial. Derecognition of financial assets The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset as well as an associated liability. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. On derecognition of a financial asset, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income or loss and accumulated in equity is recognized in profit or loss. |
Financial liabilities | 2.18 Financial liabilities Financial liabilities The Group’s financial liabilities consist of trade and other payables, certain other current liabilities loans and borrowings, lease liabilities, derivative financial instruments, long-term incentive plans, share appreciation right plans and other long-term liability to a related party. All financial liabilities are initially measured at fair value. Loans and borrowings are recorded net of directly attributable transaction costs and less the value attributable to any embedded derivative financial instruments, if applicable. The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled, substantially modified or have expired. Additionally, management elected, as part of its accounting policy, to recognize the difference between the carrying amount of the financial liabilities and the fair value of the consideration paid for the extinguishment in the consolidated statement of profit or loss and other comprehensive income or loss. Financial liabilities subsequently measured at amortized cost After initial recognition, financial liabilities other than derivative financial instruments and awards issued pursuant to long-term incentive plans are subsequently measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that discounts all estimated future cash payments through the expected life of the financial liability, or a shorter period if appropriate, to the amortized cost of a financial liability. The effective interest rate includes the effects of any discount or premium on acquisition of the financial liability, as well as any fees or costs incurred upon acquisition. Financial liabilities subsequently measured at FVTPL Derivative financial instruments Certain rights and features pursuant to borrowing arrangements and other contracts may provide the counterparty with one or more financial instruments that need to be evaluated and potentially accounted for separately by the Group. These financial instruments are either embedded in a host instrument or are treated as a separate financial instrument if they are contractually transferable independent from the host instrument. Such rights and features pursuant to the Group’s contracts with both third parties and related parties include earn out rights, conversion rights and warrant rights. Equity conversion features within host debt instruments that meet the definition of a derivative and have economic and risk characteristics that are not closely related to the host instrument are embedded derivatives that are separated from the host instrument and accounted for separately. As part of the accounting for embedded derivatives or separate financial instruments, management considers the appropriate accounting classification under IAS 32. Embedded derivatives and separate financial instruments that meet the fixed-for-fixed criteria are classified as equity and initially measured at fair value. Warrant rights that provide the holder with an option to purchase ordinary shares at a specified price or pursuant to a specified formula are generally separate derivative financial instruments that are accounted for as derivative liabilities. Earn Out Shares grant the holder with a variable number of Ordinary Shares based on certain vesting conditions tied to the stock price and are accounted for as derivative liabilities. In the event that the fair value of any derivative liabilities, determined using unobservable inputs, exceeds the transaction price of a borrowing arrangement, the Group records a deferred loss at the inception of the borrowing arrangement for the difference between the fair value of the derivative liabilities and the transaction price of the borrowing arrangement. Such deferred losses are recognized over the term of the related borrowing arrangement using the straight-line method of amortization. The deferred loss is netted against derivative financial liabilities on the consolidated statements of financial position. Amortization of the deferred loss is recognized as a component of “Finance costs” in the consolidated statements of profit or loss and other comprehensive income or loss. The Group recognized derivative liabilities related to the Predecessor Earn Out Shares, OACB Earn Out Shares and assumed OACB warrants. Additionally, the Group recognized an embedded derivative for the conversion feature associated with the Tranche A Convertible Bonds, as further described in Note 20. These features are liability-classified, rather than equity-classified, because the Group is obligated to issue a variable number of ordinary shares to the holder upon conversion or exercise of the feature. Therefore, these derivative liabilities were initially recorded at fair value and remeasured to fair value at each reporting period with gains and losses arising from changes in the fair value recognized in finance income or finance costs, as appropriate. The fair values of the derivative liabilities were determined using a valuation approach that incorporated a range of inputs that are both observable and unobservable in nature. The inputs used in the initial and subsequent fair value measurements predominantly relate to (i) the price of the Group’s Ordinary Shares (ii) the volatility of the Group’s Ordinary Shares, (ii) a risky discount rate corresponding to the credit risk associated with the repayment of the host debt instruments, and (iii) the probabilities of each derivative being exercised by the holder and the timing of such exercises. The probabilities are determined based on all relevant internal and external information available and are reviewed and reassessed at each reporting date. The Group will derecognize any derivative liabilities if and when the rights are exercised by the holders or the time period during which the rights can be exercised expires. Other long-term liability to related party The Group’s other long-term liability to a related party arose from its acquisition of rights for the commercialization of the Group’s biosimilar Adalimumab product in certain territories in Asia from Lotus Pharmaceutical Co. Ltd., a related party, during the year ended 31 December 2020. Pursuant to the terms of the asset acquisition, the Group made an upfront payment of $1.9 million and is required to pay $7.4 million upon the commercial launch of Adalimumab in China. The Group concluded that the event triggering future payment is probable and, as such, recorded the full amount of the liability as a non-current Other current liabilities In December 2021, Alvotech entered into an exclusive global licensing agreement with BiosanaPharma (Biosana) for the co-development technology. In exchange, Alvotech made an upfront payment of $7.5 million upon the signing of the agreement (the “upfront payment”), with an additional $7.5 million due at the earlier of the closing of the Business Combination (see Note 27) or 30 April 2022 (the “deferred upfront payment”). In addition, Alvotech may be obligated to pay Biosana up to an aggregate of $13.5 million, payable upon the achievement of various development and regulatory milestones, as well as certain tiered royalty payments based on commercial sales of AVT23. The agreement terminates 15 years after the launch of AVT23 and is subject to certain customary termination rights. The Group concluded that the deferred upfront payment is probable and, as such, recorded the full amount of the liability in “Other current liabilities” on the consolidated statement of financial position as of 31 December 2021. The upfront payment and the deferred upfront payment amounts were capitalized as other intangible assets in the consolidated statement of financial position and will be amortized over the useful life of 15 years. The Group will accrue the additional contingent payments if and when the related milestones and other contingencies are deemed probable of being achieved. Long-term incentive plans Share appreciation rights The Group issued to certain current and former employees share appreciation rights (SARs) that require settlement in connection with the occurrence of specified, future triggering events. Grants occurred from 2015 through 2020. The awards include a combination of vesting conditions, such as service and performance conditions, as well as non-vesting Pursuant to the terms of the SAR agreements, management determined that the Group cannot avoid paying cash to settle the awards and, therefore, SARs are liability-classified in the consolidated statements of financial position. Accordingly, SARs were recorded at fair value and were subsequently remeasured each reporting period with the change in fair value reflected as a gain or loss in the consolidated statements of profit or loss and other comprehensive income or loss, as appropriate. The fair value of the SARs was determined using the Black-Scholes-Merton pricing model. In connection with the closing of the Business Combination, the Company reached a settlement agreement for share appreciation rights previously awarded to certain current and former employees. The remaining share appreciation rights were settled through the issuance of fully vested RSUs under the Management Incentive Plan on 1 December 2022. See Note 21 for further details. Employee incentive plan The Group also sponsors an employee incentive plan for certain qualifying employees. Under the plans, such employees are entitled to cash payments upon achievement of key milestones, such as a research and development milestone or the occurrence of an exit event. The awards include a combination of vesting conditions, such as service and performance conditions, as well as non-vesting non-current The fair value of the employee incentive plan awards is determined by estimating the probability of success in reaching the specified milestones and other levers, such as the anticipated timing of potential milestone achievement. See Note 21 for further details. Management Incentive Plan The Group can issue share options, restricted share units (“RSUs”), and other share-based awards under the Company’s new incentive plan (the “Management Incentive Plan”) which was approved by the Board in June 2022. Awards issued under the Management Incentive Plan are accounted for in accordance with IFRS 2. Share-based payments are classified as equity-settled share-based payments as the Company intends to settle the awards with equity and has the commercial substance to do so. Share-based payments are measured at the grant date fair value of the instruments issued and recognized over the expected vesting periods. The number of shares expected to vest are reviewed and adjusted at the end of each reporting period such that the amount of expense recognized shall be based on the number of equity instruments that will eventually vest. See Note 22 for further details. |
Litigation and other contingencies | 2.19 Litigation and other contingencies The Group may, from time to time, become involved in legal proceedings arising out of the normal course of its operations. For instance, as a developer and manufacturer of biosimilars, the Group may be subject to lawsuits alleging patent infringement or other similar claims filed by the reference product sponsor. Similarly, the Group may utilize patent challenge procedures to challenge the validity, enforceability or infringement of the reference product sponsor’s patents. Other parties may also file patent infringement claims against the Group alleging that the Group’s products or manufacturing process techniques infringe their patents. The Group establishes reserves for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. When such conditions are not met for a specific legal matter, no reserve is established. Although management currently believes that resolving claims against the Group, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the liquidity, results of operations, or financial condition of the Group, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. It is possible that an unfavorable outcome of a lawsuit or other contingency could have a material impact on the liquidity, results of operations, or financial condition of the Group. Significant judgment is required in both the determination of probability of loss and the determination as to whether the amount of loss can be reasonably estimated. Accruals are based only on information available at the time of the assessment, due to the uncertain nature of such matters. As additional information becomes available, management reassesses potential liabilities related to pending claims and litigation and may revise its previous estimates, which could materially affect the Group’s results of operations in a given period. The Group maintains liability insurance coverages for various claims and exposures. The Group’s insurance coverage limits its maximum exposure on claims; however, the Group is responsible for any uninsured portion of losses. Management believes that present insurance coverage is sufficient to cover potential exposures. |
Leases | 2.20 Leases The Group assesses whether a contract is or contains a lease at inception of the contract. The Group recognizes a right-of-use basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. The Group’s leased assets consist of various real estate, fleet and equipment leases. Right-of-use Right-of-use right-of-use Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate, which is the rate of interest that the Group would need to pay to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term in a similar economic environment based on information available at the commencement date of the lease. The lease payments included in the measurement of the lease liability comprise fixed payments (including in-substance The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability, using the effective interest method, and by reducing the carrying amount to reflect payments made during the lease term. The Group remeasures the lease liability if the lease term has changed, when lease payments based on an index or rate change or when a lease contract is modified and the modification is not accounted for as a separate lease. Variable payments that do not depend on an index or rate are not included in the measurement of the lease liability and the right-of-use As a practical expedient, lessees are not required to separate non-lease non-lease |
Loss per share | 2.21 Loss per share Holders of the Predecessor Earn Out Shares and OACB Earn Out Shares have equal dividend and participation rights to the ordinary shareholders. However, these participating securities are classified as liabilities and as such, the shares held are not included in the weighted average number of ordinary shares outstanding in the basic loss per share calculation. The calculation of basic loss per share is based on the loss for the year attributable to ordinary shareholders of the Group and the weighted average number of ordinary shares outstanding during the period. Diluted loss per share is computed by dividing the loss for the year attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding in the basic loss per share calculation, both of which are adjusted for the effects of all dilutive potential ordinary shares. Antidilutive effects of potential ordinary shares, which result in an increase in earnings per share or a reduction in loss per share, are not recognized in the computation of diluted loss per share. |
General information (Tables)
General information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
General information about financial statements [Abstract] | |
Schedule of fair value of shares issued and non-cash share listing expense | The fair value of shares issued was estimated based on a market price of $9.38 per share as of 15 June 2022. Shares (in 000s) OACB Shareholders Class A Shareholders 976,505 Class B Shareholders 5,000,000 OACB Earn Out Shares 1,250,000 Total Alvotech Shares issued to OACB shareholders 7,226,505 Fair value of Shares issued to OACB as of 15 June 2022 $ 56,060 Fair value of OACB Earn Out Shares issued to OACB as of 15 June 2022 9,100 Estimated fair market value 65,160 Adjusted net liabilities of OACB as of 15 June 2022 (18,251 ) Difference – being the share listing expense 83,411 |
Disclosure of subsidiaries and joint ventures | 1.2 Information about subsidiaries and joint ventures Entity name Principal Issued and (presented in Place of Proportion of ownership 31.12.2022 31.12.2021 Alvotech hf Biopharm. 3,885,102 Iceland 100.00 % 100.00 % Alvotech Germany GmbH Biopharm. 31,182 Germany 100.00 % 100.00 % Alvotech Swiss AG Biopharm. 153,930 Switzerland 100.00 % 100.00 % Alvotech Hannover GmbH Biopharm. 29,983 Germany 100.00 % 100.00 % Alvotech Malta Ltd Group Serv. 80,450 Malta 100.00 % 100.00 % Alvotech USA Inc Biopharm. 10 USA 100.00 % 100.00 % Alvotech UK Ltd Group Serv. 135 UK 100.00 % 100.00 % Alvotech Manco ehf Group Serv. 203,046 Iceland 100.00 % — Alvotech Biosciences India Private Ltd Biopharm 96,113 India 100.00 % — Fasteignafelagið Sæmundur hf Real estate 12,965,337 Iceland 100.00 % — Alvotech & CCHN Biopharmaceutical Co. Ltd* Biopharm. 110,000,021 China 50.00 % 50.00 % * Alvotech & CCHN Biopharmaceutical Co. Ltd. is an unconsolidated joint venture (see Note 26). |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Table) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of summary of significant accounting policies explanatory [Abstract] | |
Summary of Useful Lives of Amortization | The following useful lives are used in the calculation of amortization: Software 3-5 years Customer relationships 7 years |
Summary of Useful Lives of Depreciation | The following useful lives are used in the calculation of depreciation: Facility 40 years Facility equipment 5-20 years Computer equipment 3 years Leasehold improvements 3-15 Furniture and fixtures 5 years |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of operating segments [abstract] | |
Summary Of Detailed Information About Revenue From Customers Based On Geographical Market | Revenue from customers based on the geographic market in which the revenue is earned, which predominantly aligns with the rights conveyed to the Group’s customers pursuant to its out-license 2022 2021 2020 North America 30,780 11,660 37,928 Europe 39,433 20,509 19,710 Asia 6,798 1,323 4,107 Other 6,018 3,280 4,871 83,029 36,772 66,616 |
Summary Of Detailed Information About Noncurrent Assets Excluding Financial Instruments And Deferred Tax Assets | Non-current 2022 2021 North America 240 439 Europe 334,837 249,803 Asia and Other 3,715 2,194 338,792 252,436 |
Summary Of Detailed Information About Revenue From Transactions With Individual Customers | Revenue from transactions with individual customers that exceed ten percent or more of the Group’s total revenue is as follows (in thousands, except for percentages): 2022 2021 2020 Revenue % Total Revenue % Total Revenue % Total Customer A 17,940 21.6 % 10,070 27.4 % 36,270 54.4 % Customer B 38,376 46.2 % 18,369 50.0 % 18,572 27.9 % |
Revenue And Other Income (Table
Revenue And Other Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Revenue and other Operating Income [Abstract] | |
Summary Of The Groups' Revenue From Contracts With Customers | Revenue from contracts with customers Disaggregated revenue The following table summarizes the Groups’ revenue from contracts with customers, disaggregated by the type of good or service and timing of transfer of control of such goods and services to customers (in thousands): 2022 2021 2020 Product revenue (point in time revenue recognition) 24,836 — — License revenue (point in time revenue recognition) 424 1,453 24,067 Research and development and other service revenue (over time revenue recognition) 57,769 35,319 42,549 83,029 36,772 66,616 |
Summary Of Reconciliation Of Contract Assets And Contract Liabilities | Contract assets and liabilities A reconciliation of the beginning and ending balances of contract assets and contract liabilities is shown in the table below (in thousands): Contract Contract 31 December 2020 34,724 53,066 Contract asset additions 21,525 — Amounts transferred to trade receivables (36,811 ) — Customer prepayments — 34,577 Revenue recognized — (13,107 ) 31 December 2021 19,438 74,536 Contract asset additions 29,823 — Amounts transferred to trade receivables (19,690 ) — Customer prepayments — 46,127 Revenue recognized — (26,782 ) Foreign currency adjustment (915 ) 51 31 December 2022 28,656 93,932 |
Salaries And Other Employee E_2
Salaries And Other Employee Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Salaries And Other Employee Expenses [Abstract] | |
Summary Of Detailed Information About Aggregate Salary And Other Employee Expenses Incurred By The Group | The aggregate salary and other employee expenses incurred by the Group for these employees were as follows (in thousands): 2022 2021 2020 Salary expense 92,082 67,433 45,904 Defined contribution plan expense (1) 10,052 7,694 5,234 Long-term incentive plan expense 5,481 17,955 18,053 Share-based payments (see Note 22) 10,317 — — Other employee expense 11,670 10,274 10,186 Temporary labor 5,838 6,164 3,441 135,440 109,520 82,818 (1) Defined contribution plan expense consists of costs incurred by the Group for employees of certain subsidiaries that are required by local laws to participate in pension schemes. These pension schemes are not sponsored or administered by the Group. Pursuant to the requirements of the schemes, the Group is required to contribute a certain percentage of its payroll costs to the pension schemes. Such contributions are charged to the consolidated statements of profit or loss and other comprehensive income or loss as they become payable in accordance with the rules of the pension schemes. |
Summary Of Detailed Information About Salaries And Other Employee Expenses Included In Consolidated Statements Of Profit Or Loss | Salaries and other employee expense is included within the consolidated statements of profit or loss and other comprehensive income or loss as follows (in thousands): 2022 2021 2020 Cost of product revenue 42,501 — — Research and development expenses 52,962 71,588 49,043 General and administrative expenses 39,977 37,932 33,775 Total salary and other employee expenses 135,440 109,520 82,818 |
Finance Income And Finance Co_2
Finance Income And Finance Cost (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Finance Income [Abstract] | |
Summary Of Detailed Information About Finance Income | Finance income earned during the years ended 31 December 2022, 2021 and 2020 is as follows (in thousands): 2022 2021 2020 Changes in the fair value of derivatives (see Note 27) 1,637 51,549 5,393 Interest income from cash and cash equivalents 556 18 166 Other interest income 356 1 49 2,549 51,568 5,608 |
Summary Of Detailed Information About Finance Cost | Finance cost incurred during the years ended 31 December 2022, 2021, and 2020 is as follows (in thousands): 2022 2021 2020 Changes in the fair value of derivatives (see Note 27) 96,981 2,804 60,823 Interest on debt and borrowings 71,452 106,548 91,985 Consenting fee (see Note 20) 7,430 — — Loss on remeasurement of bonds (see Note 20) 6,511 — — Interest on lease liabilities (see Note 13) 6,022 6,423 5,481 Amortization of deferred debt issue costs 23 1,586 3,262 188,419 117,361 161,551 |
Depreciation, Amortization An_2
Depreciation, Amortization And Impairment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Depreciation Amortization And Imapirment [Abstract] | |
Summary Of Detailed Information About Depreciation Amortization And Impairment | Depreciation, amortization and impairment expenses incurred during the years ended 31 December 2022, 2021 and 2020 are as follows (in thousands): 2022 2021 2020 Depreciation and impairment of property, plant and equipment (see Note 12) 9,807 10,666 10,363 Depreciation of right of use assets (see Note 13) 9,869 8,699 7,188 Amortization and impairment of intangible assets (see Note 15) 3,488 4,916 1,010 23,164 24,281 18,561 |
Summary Of Detailed Information About Depreciation Amortization And Impairment Expense Included In Consolidated Statements Profit Or Loss And Other Comprehensive Income Or Loss | Depreciation, amortization and impairment expense is included within the consolidated statements of profit or loss and other comprehensive income or loss as follows (in thousands): 2022 2021 2020 Cost of product revenue 10,053 — — Research and development expenses 9,757 21,764 16,358 General and administrative expenses 3,354 2,517 2,203 Total depreciation, amortization and impairment expense 23,164 24,281 18,561 |
Audit Fees (Tables)
Audit Fees (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Audit Fees [Abstract] | |
Summary Of Detailed Information About Audit Fees | 2022 2021 2020 Financial Statement audit fees 2,615 5,502 382 Other fees, including tax services 676 136 607 Total fees 3,291 5,638 989 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Income Tax [Abstract] | |
Schedule of taxation recognized in the consolidated statements of profit or loss and other comprehensive income or loss | Taxation recognized in the consolidated statements of profit or loss and other comprehensive income or loss during the years ended 31 December 2022, 2021 and 2020 is as follows (in thousands): Current tax 2022 2021 2020 Direct taxes - current 1,015 706 248 Direct taxes – prior year (115 ) 491 — Total current tax 900 1,197 248 Deferred tax Current (54,236 ) (48,414 ) (121,974 ) Prior year 15,269 (477 ) — Total deferred tax (38,967 ) (48,891 ) (121,974 ) Total income tax benefit (38,067 ) (47,694 ) (121,726 ) The prior year deferred tax impact of $15.3 million mainly relates to foreign currency impact on losses denominated in Icelandic krona. |
Schedule of the reconciling items between the statutory rate and the effective tax rate | The reconciling items between the statutory rate and the effective tax rate are as follows: 2022 2021 2020 Tax rate 24.9 % 24.9 % 24.9 % Effect of tax rate in foreign jurisdictions (2.4 %) (8.2 %) (4.9 %) Recognition of tax losses — — 27.9 % Permanent differences (8.9 %) 30.4 % — Non-recognition (3.8 %) (15.0 %) (6.2 %) Other items (2.9 %) (0.1 %) — Effective tax rate 6.9 % 32.0 % 41.7 % |
Schedule of the movement in net deferred taxes | The movement in net deferred taxes during the years ended 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Balance at 1 January 170,268 121,647 Deferred tax credited to profit or loss 38,919 48,621 Balance at 31 December 209,187 170,268 Deferred tax assets 209,496 170,418 Deferred tax liabilities (309 ) (150 ) |
Schedule of deferred tax recognized in the consolidated statements of financial position | The amount of deferred tax recognized in the consolidated statements of financial position as of 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Deferred tax assets attributable to temporary differences in respect of tax losses 205,290 158,330 Deferred tax assets attributable to other temporary differences 6,832 12,088 Deferred tax liabilities attributable to other temporary differences (2,935 ) (150 ) Net deferred tax assets 209,187 170,268 |
Schedule of expiration of unused tax losses | These tax losses expire as follows (in thousands): 2023-2025 35,751 2026-2028 210,224 Later 836,536 1,082,511 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Summary of Basic and Diluted Loss Per Share | The calculation of basic and diluted loss per share for the years ended 31 December 2022, 2021, and 2020 is as follows (in thousands, except for share and per share amounts): 2022 2021 2020 Earnings Loss for the year (513,580 ) (101,504 ) (170,044 ) Number of shares Weighted average number of ordinary shares outstanding 197,721,710 110,673,309 93,648,813 Basic and diluted loss per share (2.60 ) (0.92 ) (1.82 ) |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Property Plant And Equipment [Abstract] | |
Summary of property, plant and equipment | Movements within property, plant and equipment during the years ended 31 December 2022 and 2021 are as follows (in thousands): Facility Facility Furniture, Computer Total Cost Balance at 1 January 2022 — 88,510 32,395 1,551 122,456 Reclassification of assets — 25,486 (25,486 ) — — Additions 115,000 35,156 2,706 357 153,219 Disposals — (2,959 ) — — (2,959 ) Translation difference — (1,043 ) (17 ) 51 (1,009 ) Balance at 31 December 2022 115,000 145,150 9,598 1,959 271,707 Depreciation Balance at 1 January 2022 — 33,853 8,614 1,459 43,926 Reclassification of assets — 5,985 (5,985 ) — — Depreciation 359 8,752 621 75 9,807 Disposals — (2,597 ) — — (2,597 ) Translation difference — 9 (17 ) (15 ) (23 ) Balance at 31 December 2022 359 46,002 3,233 1,519 51,113 Net carrying amount Balance at 31 December 2022 114,641 99,148 6,365 440 220,594 Facility Furniture, Computer Total Cost Balance at 1 January 2021 70,308 27,600 1,513 99,421 Additions 19,345 4,845 69 24,259 Translation difference (1,143 ) (50 ) (31 ) (1,224 ) Balance at 31 December 2021 88,510 32,395 1,551 122,456 Depreciation Balance at 1 January 2021 25,540 7,016 1,419 33,975 Depreciation 6,870 1,637 67 8,574 Facility Furniture, Computer Total Impairment 2,092 — — 2,092 Translation difference (649 ) (39 ) (27 ) (715 ) Balance at 31 December 2021 33,853 8,614 1,459 43,926 Net carrying amount Balance at 31 December 2021 54,657 23,781 92 78,530 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Disclosure of quantitative information about right-of-use assets | The carrying amounts of the Group’s right-of-use 2022 2021 Right-of-use Balance at 1 January 126,801 111,519 Adjustments for indexed leases 10,201 5,358 New or renewed leases 9,583 18,871 Derecognition due to acquisition of Alvotech Facility (see Note 12) (88,941 ) — Depreciation (9,869 ) (8,699 ) Translation difference (274 ) (248 ) Balance at 31 December 47,501 126,801 |
Disclosure of detailed information about classes of right of use assets | The Group’s right-of-use 2022 2021 Right-of-use Facilities 41,702 122,927 Fleet 339 159 Equipment 5,460 3,715 47,501 126,801 |
Disclosure of detailed information about lease liabilities | The Group’s lease liabilities and the movements during the years ended 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Lease liabilities Balance at 1 January 122,140 108,947 Adjustments for indexed leases 10,247 5,358 New or renewed leases 7,458 18,116 Installment payments (7,655 ) (6,595 ) Derecognition due to acquisition of Alvotech Facility (see Note 12) (80,075 ) — Foreign currency adjustment (11,682 ) (3,744 ) Translation difference 99 58 Balance at 31 December 40,532 122,140 Current liabilities (5,163 ) (7,295 ) Non-current 35,369 114,845 |
Disclosure of detailed information about lease cost | The amounts recognized in the consolidated statements of profit or loss and other comprehensive income or loss during the years ended 31 December 2022, 2021 and 2020 in relation to the Group’s lease arrangements are as follows (in thousands): 2022 2021 2020 Depreciation expense from right-of-use Facilities (9,423 ) (8,228 ) (6,955 ) Fleet (119 ) (38 ) (7 ) Equipment (327 ) (433 ) (226 ) Total depreciation expense from right-of-use (9,869 ) (8,699 ) (7,188 ) Interest expense on lease liabilities (6,022 ) (6,423 ) (5,481 ) Foreign currency difference on lease liability 11,682 3,744 3,248 Loss from extinguishment of lease agreement (see Note 12) (3,859 ) — (241 ) Total amount recognized in profit and loss (8,068 ) (11,378 ) (9,662 ) |
Disclosure of detailed information about maturity analysis for lease liabilities | The maturity analysis of undiscounted lease payments as of 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Less than one year 6,000 13,164 One to five years 20,160 49,379 Thereafter 22,274 117,511 48,434 180,054 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Goodwill [Abstract] | |
Summary of Goodwill | The Group’s goodwill balances as of 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Balance as of 1 January 12,367 13,427 Translation difference (724 ) (1,060 ) Balance as of 31 December 11,643 12,367 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
Summary of Detailed Information About Intangible Assets | Movements in intangible assets during the years ended 31 December 2022 and 2021 are as follows (in thousands): Software Customer Intellectual Total Cost Balance at 1 January 2022 8,777 2,329 15,000 26,106 Additions 7,682 — — 7,682 Impairment (2,755 ) — — (2,755 ) Translation difference (20 ) (148 ) — (168 ) Balance at 31 December 2022 13,684 2,181 15,000 30,865 Amortization Balance at 1 January 2022 2,933 1,664 — 4,597 Amortization 423 310 — 733 Translation difference (13 ) (104 ) — (117 ) Balance at 31 December 2022 3,343 1,870 — 5,213 Net carrying amount Balance at 31 December 2022 10,341 311 15,000 25,652 Software Customer Intellectual Total Cost Balance at 1 January 2021 7,603 2,528 — 10,131 Additions 5,186 — 15,000 20,186 Impairment (3,993 ) — — (3,993 ) Translation difference (19 ) (199 ) — (218 ) Balance at 31 December 2021 8,777 2,329 15,000 26,106 Amortization Balance at 1 January 2021 2,351 1,445 — 3,796 Amortization 591 332 — 923 Translation difference (9 ) (113 ) — (122 ) Balance at 31 December 2021 2,933 1,664 — 4,597 Net carrying amount Balance at 31 December 2021 5,844 665 15,000 21,509 |
Summary of Impairment Loss and Reversal of Impairment Loss | Expense for amortization of the Group’s intangible assets is included within the consolidated statements of profit or loss and other comprehensive income or loss as follows (in thousands): 2022 2021 2020 Cost of product revenue 471 — — Research and development expenses — 324 357 General and administrative expenses 262 599 653 733 923 1,010 |
Cash And Cash Equivalents (Tabl
Cash And Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
Summary of Cash and Cash Equivalents | Cash and cash equivalents as shown in the consolidated statements of cash flows as of 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Cash and cash equivalents denominated in US dollars 10,377 15,798 Cash and cash equivalents denominated in other currencies 56,050 1,758 66,427 17,556 |
Summary of Restricted Cash | Movements in restricted cash balances during the years ended 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Balance at 1 January 10,087 10,087 Additions during the year 14,914 Interest income 186 — Balance at 31 December 25,187 10,087 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Classes of current inventories [abstract] | |
Summary of Inventories | The Group’s inventory balances as of 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Raw materials and supplies 41,961 26,590 Work in progress 29,450 13,730 Finished goods 2,121 — Inventory reserves (2,062 ) (1,262 ) Balance at 31 December 71,470 39,058 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Current Assets [Abstract] | |
Summary of Other Current Assets | The composition of other current assets as of 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Value-added tax 6,468 4,725 Prepaid expenses 20,601 9,320 Proceeds receivable from Convertible Bonds (see Note 20) 3,520 — Derivative asset 851 — Other short-term receivables 1,509 691 32,949 14,736 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of classes of share capital [abstract] | |
Summary of Share Capital and Share Premium | Share capital and share premium of the Group’s Ordinary Shares issued as of 31 December 2022 and 2021 is as follows (in thousands, except for share amounts): 2022 2021 Shares Share Shares Share Class A ordinary shares — — 13,386,098 997,824 Class B ordinary shares — — 95,701 2,429 Ordinary Shares 252,160,087 1,060,558 — — Total share capital and share premium 252,160,087 1,060,558 13,481,799 1,000,253 |
Summary of Movements in Ordinary Shares, Share Capital and Share Premium | Movements in the Group’s Class A and Class B ordinary shares, share capital and share premium during the years ended 31 December 2022, 2021 and 2020 are as follows (in thousands, except for share amounts): Ordinary Predecessor Share Share Total Balance at 1 January 2020 — 6,937,062 69 102,359 102,428 Share issue — 322,077 4 64,997 65,001 Transaction costs arising on share issue — — — (616 ) (616 ) Balance at 31 December 2020 — 7,259,139 73 166,740 166,813 Share issue — 6,222,660 62 833,378 833,440 Balance at 31 December 2021. — 13,481,799 135 1,000,118 1,000,253 Elimination of Predecessor Ordinary Shares (Note 1.1) — (13,481,799 ) (135 ) 135 — Issuance of Ordinary Shares (Note 1.1) 186,576,505 — 1,866 63,169 65,035 PIPE Financing (Note 1.1) 17,493,000 — 175 174,755 174,930 Transaction costs arising on share issue — — — (5,562 ) (5,562 ) Predecessor Earn Out Shares (Note 22) 38,330,000 — — (227,500 ) (227,500 ) OACB Earn Out Shares (Note 22) 1,250,000 — — (9,100 ) (9,100 ) SARs Settlement (Note 21) 3,510,582 — 35 30,267 30,302 Settlement of related party loans with Ordinary Shares 5,000,000 — 50 32,150 32,200 Balance at 31 December 2022. 252,160,087 — 2,126 1,058,432 1,060,558 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about borrowings [abstract] | |
Summary of consolidated statements of financial position | The Group’s debt consists of interest-bearing borrowings from financial institutions, related parties and third parties. Outstanding borrowings, net of transaction costs, presented on the consolidated statements of financial position as current and non-current 2022 2021 Senior Bonds 530,506 — Bonds — 394,129 Aztiq Convertible Bond 65,793 — Alvogen Facility 64,588 — Convertible Bonds 32,441 — Other borrowings 71,242 6,782 Total outstanding borrowings, net of debt issue costs 764,570 400,911 Less: current portion of borrowings (19,916 ) (2,771 ) Total non-current 744,654 398,140 |
Summary of movements in the group's outstanding borrowings | Movements in the Group’s outstanding borrowings during the years ended 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Borrowings, net at 1 January 400,911 567,899 Borrowings converted to equity — (105,501 ) Redemption of borrowings — (34,899 ) Paid payment-in-kind — (19,200 ) Premium on redeemed and unredeemed bonds — 15,472 Change in fair value upon extinguishment of convertible shareholder loans — 32,114 Recognition of deferred debt issue costs (2,889 ) — Accretion/derecognition of borrowings discount 35,065 5,506 Recognition of new borrowings discount (43,241 ) (34,302 ) Proceeds from new borrowings 467,196 114,282 Loans from related party converted to equity (50,000 ) (240,542 ) Repayments of borrowings (83,951 ) (2,597 ) Accrued interest 40,424 89,958 Amortization of deferred debt issue costs 23 12,754 Foreign currency exchange difference 1,032 (33 ) Borrowings, net at 31 December 764,570 400,911 |
Schedule of maturities of outstanding borrowings | Contractual maturities of principal amounts on the Group’s outstanding borrowings as of 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Within one year 19,916 2,771 Within two years 3,804 2,920 Within three years 696,646 622 Within four years 3,374 394,222 Thereafter 40,830 376 764,570 400,911 |
Long-Term Incentive Plans (Tabl
Long-Term Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Longterm incentive plans [Abstract] | |
Schedule of significant assumptions used in the finnerty model to determine the fair value of the ordinary shares to be issued | Significant assumptions used in the Finnerty model to determine the fair value of the Ordinary Shares to be issued for the settlement as of 15 June 2022 are as follows: 15 June 2022 Asset price $ 9.38 Term (years) 1 year Volatility rate 35.0 % Dividend yield 0.0 % Indicated put option value $ 0.75 Discount for lack of marketability 8.0 % |
Schedule of significant assumptions used in the black-scholes-merton pricing model | Significant assumptions used in the Black-Scholes-Merton pricing model as of 31 December 2021 and 2020 are as follows: 2021 2020 Risk-free interest rate 0.1 % 0.1 % Volatility rate 42.0 % 42.0 % Expected dividend yield 0.0 % 0.0 % Expected life 0.4 – 1.0 years 1.0 – 1.2 years Share price at valuation $ 1,806 $ 1,465 Strike price $ 925 - $1,695 $ 904 - $1,296 |
Schedule of movements in the group's employee incentive plan liabilities | Movements in the Group’s employee incentive plan liabilities during the years ended 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Balance at 1 January 14,935 10,501 Additions 5,075 6,648 Payments (7,693 ) (2,214 ) Balance at 31 December prior to reclassification 12,317 14,935 Reclassified to other current liabilities (11,773 ) — Balance at 31 December 544 14,935 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Share Based Payment Arrangements [Abstract] | |
Summary of Movements in RSUs | Movements in RSUs during the year ended 31 December 2022 are as follows: RSUs Weighted Granted 7,659,049 $ 6.68 Vested (679,563 ) $ 6.30 Outstanding at 31 December 6,979,486 $ 6.72 |
Summary of Share-based payment expense | The Group recognized $10.3 million of share-based payment expense during the year ended 31 December 2022 (in thousands): 2022 Cost of product revenue 1,522 Research and development expenses 2,994 General and administrative expenses 5,801 10,317 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of related party transactions | Related party transactions as of and for the year ended 31 December 2022 are as follows (in thousands): Purchased service / Sold service Receivables Payables/ Alvogen Lux Holdings S.à r.l. – Sister company (a) 5,415 — — 64,588 Aztiq Fjárfestingar ehf. (a) 216 — — 20 Aztiq Consulting ehf. 442 — — 25 ATP Holdings ehf. (e) 1,254 — 765 81,254 Fasteignafélagið Sæmundur hf. - Sister 7,189 — — — Fasteignafélagið Eyjólfur hf. - Sister — 196 — — Alvogen Iceland ehf. - Sister company 465 174 — 484 Alvogen ehf. - Sister — 68 1 — Lotus Pharmaceuticals Co. Ltd. - Sister — 3 2 7,440 Lotus International Pte. Ltd. - Sister — 4 3 — Alvogen Emerging Markets - Sister 98 — — — Alvogen Korea co. Ltd - Sister — 1 — — Alvogen Inc. - Sister 585 266 12 222 Alvotech & — — 758 — Adalvo Limited – Sister company 1,218 106 — 349 Alvogen Malta Sh. Services - Sister 603 — 7 — Alvogen Spain SL - Sister 117 — — — Norwich Clinical Services Ltd - Sister 301 — — 31 Alvogen Pharma Pvt Ltd - Sister 1,159 — — — Flóki Fasteignir ehf. (HRJÁF ehf.) - Sister 1,516 — — 8,876 L41 ehf. 26 — — — Lambahagavegur 7 ehf. (d) 537 — — — 21,141 818 1,548 163,289 (a) The full amount of purchased service relates to interest expenses from long-term liabilities and the full amount of payables / loans are interest-bearing long-term liabilities (see Note 20). (b) Payables to Lotus Pharmaceuticals Co. Ltd. consists of the long-term liability as further described in Note 2. This long-term liability is presented as “Other long-term liability to related party” on the consolidated statements of financial position. (c) The amount receivable from Alvotech & CCHN Biopharmaceutical Co., Ltd. relates to amounts due for reference drugs used in research and development studies and certain consulting fees incurred by the Group. (d) Lambahagavegur is no longer a related party as it was sold during the year ended 31 December 2022. (e) Fasteignafélagið Sæmundur hf. was acquired as part of the Share Purchase Agreement, with ATP Holdings ehf., on 16 November 2022. The related party transactions reflect activity until the acquisition date. See Note 12 and Note 20 for further details. Related party transactions as of and for the year ended 31 December 2021 are as follows (in thousands): Purchased service / Sold Receivables Payables/ Alvogen Lux Holdings S.à r.l. – Sister company (a) 9,383 — — — Aztiq Pharma Partners S.à r.l. – Sister company (a) 16,048 — — — Alvogen Aztiq AB – Sister company (a) 297 — — 43 Aztiq Fjárfestingar ehf. (a) 120 — — — Aztiq Investment Advisory AB (a) — — 2 — Fasteignafélagið Sæmundur hf. – Sister company 7,762 — — 83,770 Alvogen Iceland ehf. – Sister company 454 2,308 109 14 Alvogen ehf. – Sister company 6 2 2 — Alvogen UK – Sister company 299 — 17 — Lotus Pharmaceuticals Co. Ltd. – Sister company (b) — 312 295 7,440 Alvogen Emerging Markets – Sister company 238 — — 16 Alvogen Korea co. Ltd – Sister company — 9 — — Alvogen Inc. – Sister company 89 654 301 — Alvotech & — — 320 — Alvogen Malta Sh. Services – Sister company 1,216 151 — 283 Alvogen Malta (Outlicensing) Ltd – Sister company 1,045 279 65 229 Alvogen Spain SL – Sister Company 294 — — 23 Norwich Clinical Services Ltd – Sister Company 41 — — 17 Alvogen Pharma Pvt Ltd – Sister Company 491 — — 13 HRJAF ehf – Sister company 1,415 — — 9,794 L41 ehf. 29 — — — Lambahagavegur 7 ehf. 713 — — 12,661 39,940 3,715 1,111 114,303 (a) The full amount of purchased service relates to interest expenses from long-term liabilities and the full amount of payables / loans are interest-bearing long-term liabilities (see Note 20). (b) Payables to Lotus Pharmaceuticals Co. Ltd. consists of the long-term liability as further described in Note 2. This long-term liability is presented as “Other long-term liability to related party” on the consolidated statements of financial position. (c) The amount receivable from Alvotech & Related party transactions for the year ended 31 December 2020 are as follows (in thousands): Purchased service / Sold Alvogen Lux Holdings S.à r.l. – Sister company (a) 9,452 1,134 Aztiq Pharma Partners S.à r.l. – Sister company (a) 19,471 — Fasteignafélagið Sæmundur hf. – Sister company 8,111 — Alvogen Iceland ehf. – Sister company 2,268 1,310 Alvogen ehf. – Sister company 40 — Alvogen UK – Sister company 1,153 — Lotus Pharmaceuticals Co. Ltd. – Sister company (b) 3,060 — Alvogen Emerging Markets – Sister company 68 — Alvogen Inc. – Sister company 67 — Alvogen PB R&D LLC — 7 Alvogen Malta Operations Ltd – Sister company 239 — Alvogen Malta Group Services – Sister company 478 — Alvogen Malta Sh. Services – Sister company 101 — Alvogen Malta LTD – Sister company — 4 Alvogen Malta (Outlicensing) Ltd – Sister company 142 185 Alvogen Spain SL – Sister Company 132 — Norwich Clinical Services Ltd – Sister Company 92 — Alvogen Pharma Pvt Ltd – Sister Company 218 — HRJAF ehf – Sister company 1,083 — 46,175 2,640 (a) The full amount of purchased service relates to interest expenses from long-term liabilities and the full amount of payables / loans are interest-bearing long-term liabilities (see Note 20). (b) Payables to Lotus Pharmaceuticals Co. Ltd. consists of the long-term liability as further described in Note 2. This long-term liability is presented as “Other long-term liability to related party” on the consolidated statements of financial position. |
Schedule of information about Board of Directors remuneration | The Board of Directors’ remuneration is shown in the table below. Board of Directors’ fee for the year and shares at year end (board 2022 Board fees Pension Shares at year-end** Robert Wessman, Chairman of the board 740 — — Richard Davi e 68 — 1,133,131 Ann Merchant, Board Member (from 16.6.2022) 43 — Árni Harðarson, Board Member (from 16.6.2022)* — — — Faysal Kalmoua, Board Member* — — — Linda McGoldrick, Board Member (from 16.6.2022) 38 — — Lisa Graver, Board Member (from 16.6.2022) 38 — — Tomas Ekman, Board Member* — — — Hirofumi Imai, Board member (until 16.6.2022) — — — 927 — 1,133,131 * Waived their board compensation (both cash and equity). ** Direct share ownership 2022 Key employees Salaries and Pension Termination Other long- Mark Levick CEO 892 162 1,157 — Other Executive Team Members (9) 5,400 446 820 5,015 6,292 608 1,977 5,015 Board of Directors’ fee for the year and shares at year end (board fees in thousands and shares in whole amounts). 2021 Board Pension Shares at year-end** Robert Wessman, Chairman of the board — — — Richard Davi e — — 893,060 Faysal Kalmoua, Board Member* — — — Tomas Ekman, Board Member* — — — Hirofumi Imai, Board member — — — Tanya Zharov (from 23.8.2021)* — — — — — 893,060 * Waived their board compensation (both cash and equity). ** Direct share ownership 2021 Key employees Salaries and Pension Termination Other long- Mark Levick CEO 877 159 — — Other Executive Team Members (9) 4,531 333 — 985 5,408 492 — 985 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Current Liabilities [Abstract] | |
Schedule of composition of other current liabilities | The composition of other current liabilities as of 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Unpaid salary and salary related expenses 15,620 10,235 Accrued interest 2,249 7,547 Accrued payable to Biosana — 7,500 Accrued vacation leave 5,025 4,626 Employee incentive plan 12,433 — Accrued expenses 18,720 12,104 54,047 42,012 |
Interests In Joint Ventures (Ta
Interests In Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of joint ventures [abstract] | |
Schedule of Information About Joint Venture | Name of entity Place of Ownership interest Carrying Amount 2022 2021 2022 2021 Alvotech & CCHN Biopharmaceutical Co., Ltd. China 50 % 50 % 48,568 55,307 |
Schedule of Changes in Groups Investment in a Joint Venture | The following table provides the change in the Group’s investment in a joint venture during the years ended 31 December 2022 and 2021 (in thousands): 2022 2021 Balance at 1 January 55,307 56,679 Share in losses (2,590 ) (2,418 ) Translation difference (4,149 ) 1,046 Balance at 31 December 48,568 55,307 |
Schedule of Summary of Statement of Financial Position of Joint Venture | Summarized Statements of Financial Position (in thousands) 2022 2021 Current assets Cash and bank balances 17,203 29,659 Trade receivables — 15 Inventories 250 18 Other current assets 1,539 1,372 Total current assets 18,992 31,064 Total non-current 107,487 94,525 Current liabilities Financial liabilities 145 — Other current liabilities 14,129 12,156 Total current liabilities 14,274 12,156 Total non-current 15,069 2,820 Net assets 97,136 110,613 |
Schedule of Reconciliation to Carrying Amounts in Joint Venture | Reconciliation to carrying amounts (in thousands): 2022 2021 Opening net assets at 1 January 110,613 113,061 Loss for the year (5,180 ) (4,836 ) Other comprehensive income — — Cash contributions of owners — — Receivable from owners — — Dividends paid — — Other, net (8,297 ) 2,388 Closing net assets at 31 December 97,136 110,613 Group’s share in % 50 % 50 % Group’s share in USD 48,568 55,307 Carrying amount 48,568 55,307 |
Schedule of Summary of Statement of Profit Loss and Other Comprehensive Income of Joint Venture | Summarized Statements of Profit or Loss & 2022 2021 2020 Revenue Interest income — 433 — 1,295 — 2,518 Depreciation and Amortization 829 210 26 Interest expense 151 — — Income tax expense — — — Other expenses 4,633 5,920 4,844 Exchange rate differences — 1 658 Loss for the year (5,180 ) (4,836 ) (3,010 ) Other comprehensive income — — — Total comprehensive loss (5,180 ) (4,836 ) (3,010 ) Dividends received from joint venture entity — — — |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [line items] | |
Summary of Financial Assets Measured at Cost | Financial assets as of 31 December 2022 and 2021, all of which are measured at amortized cost, are as follows (in thousands): 2022 2021 Cash and cash equivalents 66,427 17,556 Restricted cash 25,187 10,087 Trade receivables 32,972 29,396 Other current assets 5,880 14,518 Receivables from related parties 1,548 1,111 Other long-term assets 4,484 — 136,498 72,668 |
Summary of Financial Liabilities | Financial liabilities as of 31 December 2022 and 2021 are as follows (in thousands): 2022 2021 Borrowings (measured at amortized cost) 764,570 400,911 Derivative financial liabilities (measured at FVTPL) 380,232 — Other long-term liability to related party (measured at amortized cost) 7,440 7,440 Long-term incentive plan (measured at FVTPL) 544 56,334 Trade and other payables (measured at amortized cost) 49,188 28,587 Lease liabilities (measured at amortized cost) 40,532 122,140 Liabilities to related parties (measured at amortized cost) 1,131 638 Other current liabilities 53,664 42,012 1,297,301 658,062 |
Summary of Material Differences Between the Fair Value and Carrying Amount | Material differences between the fair values and carrying amounts of these borrowings are identified as follows (in thousands): At 31 December 2022 Carrying Amount Fair Value Senior Bonds 530,506 535,167 At 31 December 2021 Carrying Amount Fair Value Bonds 363,100 368,476 |
Summary of Fair Value on a Recurring Basis | The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments measured to fair value on a recurring basis as of 31 December 2022 (in thousands): 2022 Level 1 Level 2 Level 3 Total Senior Bond Warrants — — 45,325 45,325 Tranche A Conversion Feature — — 38,055 38,055 Senior Bond Interest Rate Feature (included in other current assets) — — 851 851 Predecessor Earn Out Shares — 276,200 — 276,200 OACB Earn Out Shares — 10,500 — 10,500 OACB Warrants 10,152 — — 10,152 10,152 286,700 84,231 381,083 |
Summary of Interest Rate Sensitivity Analysis | The following table provides an interest rate sensitivity analysis for the effect on loss before tax (in thousands): 2022 2021 Variable-rate financial liabilities +100 (186 ) (65 ) Variable-rate financial liabilities -100 186 65 |
Summary of Impact on the Groups Operations | Below are the foreign currencies that have the most significant impact on the Group’s operations. Closing rate Average rate Change 2022 2021 2022 2021 EUR 1.061 1.133 1.052 1.183 (6.4 %) GBP 1.204 1.350 1.233 1.376 (10.8 %) ISK 0.007 0.008 0.007 0.008 (8.3 %) CHF 1.071 1.094 1.047 1.094 (2.1 %) INR 0.012 0.013 0.013 0.014 (10.1 %) |
Summary of Groups Assets and Liabilities | The Group’s assets and liabilities that are denominated in foreign currencies as of 31 December 2022 are as follows (in thousands): Assets Liabilities Net EUR 36,420 26,514 9,906 GBP 111 1,538 (1,427 ) ISK 49,484 109,507 (60,023 ) CHF 69 7,305 (7,236 ) INR 11 517 (506 ) The Group’s assets and liabilities that are denominated in foreign currencies as of 31 December 2021 are as follows (in thousands): Assets Liabilities Net assets EUR 31,718 15,720 15,998 GBP 180 673 (493 ) ISK 5,421 148,747 (143,326 ) CHF 715 7,305 (6,590 ) |
Summary of Analysis Assumes that all Other Variables | The analysis assumes that all other variables, such as interest rates, remain constant. EUR GBP ISK CHF INR Year ended 31 December 2022 -10% weakening (991 ) (143 ) (6,002 ) (724 ) (51 ) +10% strengthening 991 143 6,002 724 51 Year ended 31 December 2021 -10% weakening (1,600 ) (49 ) (14,333 ) (659 ) N/A +10% strengthening 1,600 49 14,333 659 N/A |
Summary of the Maximum Credit Risk Exposure of the Groups Financial Assets | The maximum credit risk exposure for the Group’s financial assets as of 31 December 2022 and 2021 is as follows (in thousands): 2022 2021 Cash and cash equivalents 66,427 17,556 Restricted cash 25,187 10,087 Other assets 44,884 66,344 136,498 93,987 |
Summary of Contractual Maturities of Financial Assets and Liabilities | Contractual maturities of financial assets and liabilities as of 31 December 2022 are as follows (in thousands): Within one One to two Thereafter Total Financial assets Non-interest 40,400 — — 40,400 Variable-interest bearing 66,427 — 29,671 96,098 Total financial assets 106,827 — 29,671 136,498 Financial liabilities Non-interest 104,366 — 7,984 112,350 Fixed-interest bearing - Borrowings 45,757 66,308 896,921 1,008,986 Derivative liabilities — — 380,232 380,232 Variable-interest bearing - Borrowings 25,259 8,036 59,109 92,404 Total financial liabilities 175,382 74,344 1,344,246 1,593,972 Contractual maturities of financial assets and liabilities as of 31 December 2021 are as follows (in thousands): Within one One to two Thereafter Total Financial assets Non-interest 29,396 — — 29,396 Variable-interest bearing 17,556 — 10,087 27,643 Total financial assets 46,952 — 10,087 57,039 Financial liabilities Non-interest 71,237 — 63,774 135,011 Fixed-interest bearing - Borrowings 16,663 33,235 500,675 550,573 Variable-interest bearing - Borrowings 3,041 3,035 1,117 7,193 Total financial liabilities 90,941 36,270 565,566 692,777 |
Embedded Derivative Liabilities Associated With Convertible Bonds [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Summary of Assumptions and Inputs | The following table presents the assumptions and inputs that were used for the model in valuing the Tranche A Conversion Feature: 31 December 20 December Stock price Conversion price Volatility rate $ $ 10.00 10.00 45.0 % $ $ 8.00 10.00 45.0 % Risk-free interest rate 4.2 % 4.0 % Dividend yield 0.0 % 0.0 % Risky yield 19.3 % 18.6 % |
Predecessor Earnout Shares [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Summary of Assumptions and Inputs | The following table presents the assumptions and inputs that were used for the model in valuing the Predecessor Earn Out Shares: 31 December 15 June Share price $ 10.00 $ 9.38 Volatility rate 45.0 % 37.5 % Risk-free rate 4.1 % 3.4 % |
OACB earnout shares [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Summary of Assumptions and Inputs | The following table presents the assumptions and inputs that were used for the model in valuing the OACB Earn Out Shares: 31 December 15 June Share price $ 10.00 $ 9.38 Volatility rate 45.0 % 37.5 % Risk-free rate 4.1 % 3.4 % |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure In Entirety Of Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplement cash flow information for the year ended 31 December 2022, 2021 and 2020 is included below (in thousands). Non-cash 2022 2021 2020 Acquisition of property, plant and equipment in trade payables 4,131 3,812 — Acquisition of intangibles in trade payables and other current liabilities 4,075 — — Right-of-use 9,583 18,871 15,204 Addition of the Facility through Aztiq Convertible Bond 115,005 — — Non-cash issuance of Aztiq Convertible Bond 80,000 — — Equity issued through conversion of borrowings 32,200 346,043 30,000 Acquisition of other intangible assets through financing agreements — 461 — |
General information - Additiona
General information - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||
Feb. 10, 2023 USD ($) $ / shares | Jan. 25, 2023 USD ($) | Jun. 15, 2022 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares Warrants | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | Dec. 31, 2019 USD ($) | |
General Information About Financial Statements [Line Items] | |||||||||
Proceeds from issuing shares | $ 9,800 | $ 185,856 | $ 34,385 | ||||||
Reorganization, Share listing expense | $ 83,411 | ||||||||
Fair value of shares issued, market price per share | $ / shares | $ 9.38 | ||||||||
General and administrative expense | 186,742 | 84,134 | 58,914 | ||||||
Net losses | (513,580) | (101,504) | (170,044) | ||||||
Accumulated deficit | (1,654,114) | (1,140,534) | |||||||
Cash and cash equivalents | 66,427 | 17,556 | 31,689 | $ 67,403 | |||||
Current assets less current liabilities | 63,400 | ||||||||
Repayments of borrowings | 34,714 | $ 37,496 | $ 2,896 | ||||||
Proceeds from issuance of private placement | $ 137,000 | ||||||||
Private Placement [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Share price | $ / shares | $ 11.57 | ||||||||
Payments for share issue costs | $ 4,800 | ||||||||
Alvogen Facility [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Notional amount | 110,000 | ||||||||
Repayments of borrowings | 50,000 | ||||||||
Senior Bonds [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Proceeds from issue of bonds | 57,900 | ||||||||
Tranche A and Tranche B Convertible Bonds and Facility Loans [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Proceeds from issue of bonds | $ 73,400 | ||||||||
Tranche B Convertible Bonds [Member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Issue of convertible instruments | $ 10,000 | ||||||||
Conversion price | 10% | ||||||||
Expected conversion date | December 31, 2023, or June 30, 2024 | ||||||||
Aztiq Pharma Partners Sarl [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Ownership interest in subsidiary | 40.70% | ||||||||
Other Subsidiaries [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Ownership interest in subsidiary | 23.50% | 15.40% | |||||||
Maximum percentage of ownership interest held by each shareholder | 2.4 | 2.4 | |||||||
Aztiq [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Ownership interest in subsidiary | 45.10% | ||||||||
Notional amount | $ 25,000 | $ 25,000 | |||||||
Alvogen [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Ownership interest in subsidiary | 39.50% | ||||||||
Notional amount | $ 25,000 | $ 25,000 | |||||||
Alvogen Lux Holdings Sarl [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Ownership interest in subsidiary | 35.80% | ||||||||
Business Combination and PIPE Financing [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Transaction costs | $ 28,500 | ||||||||
Expense capitalized | 5,600 | ||||||||
General and administrative expense | 22,900 | ||||||||
Proceeds from the issuance of common stock | $ 131,900 | ||||||||
OACB Warrants [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Number of other equity instruments outstanding | Warrants | 10,916,647 | ||||||||
Ordinary Shares [member] | Predecessor Earn Out Shares [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Number of instruments granted in share-based payment arrangement | shares | 38,330,000 | ||||||||
Ordinary Shares [member] | OACB Earn Out Shares [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Number of instruments granted in share-based payment arrangement | shares | 1,250,000 | ||||||||
Ordinary Shares [member] | Subscription Agreements [member] | |||||||||
General Information About Financial Statements [Line Items] | |||||||||
Common stock, Shares subscribed | shares | 17,493,000 | ||||||||
Common stock, Subscription price per share | $ / shares | $ 10 | ||||||||
Common stock, Value, Subscriptions | $ 174,900 |
General Information - Schedule
General Information - Schedule of fair value of shares issued and non-cash share listing expense (Details) $ in Thousands | Jun. 15, 2022 USD ($) shares |
Schedule of fair value of shares issued and noncash share listing expense [line items] | |
Alvotech Shares issued to OACB shareholders | shares | 7,226,505 |
Estimated fair market value | $ 65,160 |
Adjusted net liabilities of OACB as of 15 June 2022 | (18,251) |
Difference – being the share listing expense | $ 83,411 |
OACB Earn Out Shares [member] | |
Schedule of fair value of shares issued and noncash share listing expense [line items] | |
Alvotech Shares issued to OACB shareholders | shares | 1,250,000 |
Estimated fair market value | $ 9,100 |
Ordinary Shares [member] | |
Schedule of fair value of shares issued and noncash share listing expense [line items] | |
Estimated fair market value | $ 56,060 |
Ordinary Shares [member] | Class A common stock [member] | |
Schedule of fair value of shares issued and noncash share listing expense [line items] | |
Alvotech Shares issued to OACB shareholders | shares | 976,505 |
Ordinary Shares [member] | Class B Common Stock [member] | |
Schedule of fair value of shares issued and noncash share listing expense [line items] | |
Alvotech Shares issued to OACB shareholders | shares | 5,000,000 |
General Information - Disclosur
General Information - Disclosure of Subsidiaries and Joint Ventures (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Alvotech CCHN Biopharmaceutical Co. Ltd [member] | ||
Disclosure of subsidiaries [line items] | ||
Entity name, Joint venture | Alvotech & CCHN Biopharmaceutical Co. Ltd | |
Principal activities | Biopharm | |
Issued and paid capital (presented in whole shares) | 110,000,021 | |
Place of establishment, Joint venture | China | |
Proportion of ownership and voting power held by Alvotech, Joint venture | 50% | 50% |
Alvotech Hf [member] | ||
Disclosure of subsidiaries [line items] | ||
Entity name | Alvotech hf | |
Principal activities | Biopharm | |
Issued and paid capital (presented in whole shares) | 3,885,102 | |
Place of establishment | Iceland | |
Proportion of ownership and voting power held by Alvotech | 100% | 100% |
Alvotech Germany GmbH [member] | ||
Disclosure of subsidiaries [line items] | ||
Entity name | Alvotech Germany GmbH | |
Principal activities | Biopharm | |
Issued and paid capital (presented in whole shares) | 31,182 | |
Place of establishment | Germany | |
Proportion of ownership and voting power held by Alvotech | 100% | 100% |
Alvotech Swiss AG [member] | ||
Disclosure of subsidiaries [line items] | ||
Entity name | Alvotech Swiss AG | |
Principal activities | Biopharm | |
Issued and paid capital (presented in whole shares) | 153,930 | |
Place of establishment | Switzerland | |
Proportion of ownership and voting power held by Alvotech | 100% | 100% |
Alvotech Hannover GmbH [member] | ||
Disclosure of subsidiaries [line items] | ||
Entity name | Alvotech Hannover GmbH | |
Principal activities | Biopharm | |
Issued and paid capital (presented in whole shares) | 29,983 | |
Place of establishment | Germany | |
Proportion of ownership and voting power held by Alvotech | 100% | 100% |
Alvotech Malta Ltd [member] | ||
Disclosure of subsidiaries [line items] | ||
Entity name | Alvotech Malta Ltd | |
Principal activities | Group Serv | |
Issued and paid capital (presented in whole shares) | 80,450 | |
Place of establishment | Malta | |
Proportion of ownership and voting power held by Alvotech | 100% | 100% |
Alvotech USA Inc [member] | ||
Disclosure of subsidiaries [line items] | ||
Entity name | Alvotech USA Inc | |
Principal activities | Biopharm | |
Issued and paid capital (presented in whole shares) | 10 | |
Place of establishment | USA | |
Proportion of ownership and voting power held by Alvotech | 100% | 100% |
Alvotech UK Ltd [member] | ||
Disclosure of subsidiaries [line items] | ||
Entity name | Alvotech UK Ltd | |
Principal activities | Group Serv | |
Issued and paid capital (presented in whole shares) | 135 | |
Place of establishment | UK | |
Proportion of ownership and voting power held by Alvotech | 100% | 100% |
Alvotech Manco ehf [member] | ||
Disclosure of subsidiaries [line items] | ||
Entity name | Alvotech Manco ehf | |
Principal activities | Group Serv | |
Issued and paid capital (presented in whole shares) | 203,046 | |
Place of establishment | Iceland | |
Proportion of ownership and voting power held by Alvotech | 100% | |
Alvotech Biosciences India Private Ltd [member] | ||
Disclosure of subsidiaries [line items] | ||
Entity name | Alvotech Biosciences India Private Ltd | |
Principal activities | Biopharm | |
Issued and paid capital (presented in whole shares) | 96,113 | |
Place of establishment | India | |
Proportion of ownership and voting power held by Alvotech | 100% | |
Fasteignafelagi Smundur hf [member] | ||
Disclosure of subsidiaries [line items] | ||
Entity name | Fasteignafelagið Sæmundur hf | |
Principal activities | Real estate | |
Issued and paid capital (presented in whole shares) | 12,965,337 | |
Place of establishment | Iceland | |
Proportion of ownership and voting power held by Alvotech | 100% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation method, property, plant and equipment | Depreciation is calculated and recognized as an expense on a straight-line basis over an asset’s estimated useful life. | ||
long term liability to related party | $ 163,289 | $ 114,303 | |
Inventory write-down | 2,100 | 1,200 | $ 1,300 |
Reversal of inventory write-down | 0 | $ 0 | $ 0 |
Global licensing agreement [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Upfront payment | 7,500 | ||
Other non-current liabilities | 7,500 | ||
Biosana [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Other non-current liabilities | 13,500 | ||
Lotus pharmaceutical co. ltd [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Upfront payment | 1,900 | ||
long term liability to related party | $ 7,400 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Useful Lives of Amortization (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Software [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives of amortization | 3 years |
Software [member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives of amortization | 5 years |
Customer relationships [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives of amortization | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Useful Lives of Depreciation (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Facility [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life of depreciation | 40 years |
Facility equipment [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life of depreciation | 5 years |
Facility equipment [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life of depreciation | 20 years |
Computer equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life of depreciation | 3 years |
Leasehold improvements [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life of depreciation | 3 years |
Leasehold improvements [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life of depreciation | 15 years |
Furniture and fixtures [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life of depreciation | 5 years |
Segment Reporting - Summary Of
Segment Reporting - Summary Of Detailed Information About Revenue From Customers Based On Geographical Market (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographical areas [line items] | |||
Revenue from contracts with customers | $ 83,029 | $ 36,772 | $ 66,616 |
North America [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue from contracts with customers | 30,780 | 11,660 | 37,928 |
Europe [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue from contracts with customers | 39,433 | 20,509 | 19,710 |
Asia [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue from contracts with customers | 6,798 | 1,323 | 4,107 |
Other Geographical Area [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue from contracts with customers | $ 6,018 | $ 3,280 | $ 4,871 |
Segment Reporting - Summary O_2
Segment Reporting - Summary Of Detailed Information About Noncurrent Assets Excluding Financial Instruments And Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of geographical areas [line items] | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | $ 338,792 | $ 252,436 |
North America [Member] | ||
Disclosure of geographical areas [line items] | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 240 | 439 |
Europe [Member] | ||
Disclosure of geographical areas [line items] | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 334,837 | 249,803 |
Asia And Other [Member] | ||
Disclosure of geographical areas [line items] | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | $ 3,715 | $ 2,194 |
Segment Reporting - Summary O_3
Segment Reporting - Summary Of Detailed Information About Revenue From Transactions With Individual Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Customer A [Member] | |||
Disclosure of major customers [line items] | |||
Revenue | $ 17,940 | $ 10,070 | $ 36,270 |
Percentage of entity's revenue | 21.60% | 27.40% | 54.40% |
Customer B [Member] | |||
Disclosure of major customers [line items] | |||
Revenue | $ 38,376 | $ 18,369 | $ 18,572 |
Percentage of entity's revenue | 46.20% | 50% | 27.90% |
Revenue and other income - Summ
Revenue and other income - Summary Of The Groups' Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | $ 83,029 | $ 36,772 | $ 66,616 |
Product revenue [Member] | Goods or services transferred at point in time [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 24,836 | ||
License revenue [Member] | Goods or services transferred at point in time [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 424 | 1,453 | 24,067 |
Research and development and other service revenue [Member] | Goods or services transferred over time [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | $ 57,769 | $ 35,319 | $ 42,549 |
Revenue and other income - Su_2
Revenue and other income - Summary Of Reconciliation Of Contract Assets And Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Contract Asset [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Beginning balance asset | $ 19,438 | $ 34,724 |
Contract asset additions | 29,823 | 21,525 |
Amounts transferred to trade receivables | (19,690) | (36,811) |
Ending balance asset | 28,656 | 19,438 |
Foreign currency adjustment | (915) | |
Contract Liabilities [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Beginning balance liabilities | 74,536 | 53,066 |
Customer prepayments | 46,127 | 34,577 |
Revenue recognized | (26,782) | (13,107) |
Foreign currency adjustment | 51 | |
Ending balance liabilities | $ 93,932 | $ 74,536 |
Revenue and other income - Addi
Revenue and other income - Additional information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2020 | Nov. 30, 2019 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Non-current contract assets | $ 3,286 | $ 1,479 | ||||
Current contract assets | 25,370 | 17,959 | ||||
Non-current contract liabilities | 57,017 | 44,844 | ||||
Current contract liabilities | $ 36,915 | $ 29,692 | ||||
OutLicense Agreements [member] | Teva Pharmaceutical Industries Ltd [member] | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Upfront payment received | $ 40,000 | |||||
Percentage of Royality on Estimated Net Sales | 40% | |||||
OutLicense Agreements [member] | Teva Pharmaceutical Industries Ltd [member] | Development Milestones [member] | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Revenue recognition milestone method revenue recognized | $ 35,000 | |||||
Milestone payment receivable | 50,000 | |||||
OutLicense Agreements [member] | Teva Pharmaceutical Industries Ltd [member] | Regulatory Milestones [member] | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Milestone payment receivable | $ 175,000 | |||||
OutLicense Agreements [member] | Teva Pharmaceutical Industries Ltd [member] | Contingent Milestone Payment on Sales Achievement [member] | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Milestone payment receivable | $ 200,000 | |||||
Exclusive Strategic Agreement [member] | STADA Arzneimittel AG [member] | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Upfront payment received | $ 5,900 | |||||
Percentage of Royality on Estimated Net Sales | 40% | |||||
Exclusive Strategic Agreement [member] | STADA Arzneimittel AG [member] | Development Milestones [member] | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Revenue recognition milestone method revenue recognized | $ 78,600 | |||||
Milestone payment receivable | 130,900 | |||||
Exclusive Strategic Agreement [member] | STADA Arzneimittel AG [member] | Regulatory Milestones [member] | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Milestone payment receivable | 60,100 | |||||
Exclusive Strategic Agreement [member] | STADA Arzneimittel AG [member] | Contingent Milestone Payment on Sales Achievement [member] | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Milestone payment receivable | $ 11,800 | |||||
Not Later Than Three Years [member] | Performance obligations satisfied over time [member] | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Transaction price allocated to remaining performance obligations | $ 283,000 | |||||
Bottom of range [member] | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Non-current contract assets materialize period | 2 years | |||||
Non-current contract assets recognized period | 2 years | |||||
Top of range [member] | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Non-current contract assets materialize period | 3 years | |||||
Non-current contract assets recognized period | 5 years |
Salaries And Other Employee E_3
Salaries And Other Employee Expenses - Summary Of Detailed Information About Aggregate Salary And Other Employee Expenses Incurred By The Group (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Classes of employee benefits expense [abstract] | |||
Salary expense | $ 92,082 | $ 67,433 | $ 45,904 |
Defined contribution plan expense (1) | 10,052 | 7,694 | 5,234 |
Long-term incentive plan expense | 5,481 | 17,955 | 18,053 |
Share-based payments (see Note 22) | 10,317 | ||
Other employee expense | 11,670 | 10,274 | 10,186 |
Temporary labor | 5,838 | 6,164 | 3,441 |
EmployeeBenefitsExpense | $ 135,440 | $ 109,520 | $ 82,818 |
Salaries And Other Employee E_4
Salaries And Other Employee Expenses - Summary Of Detailed Information About Salaries And Other Employee Expenses Included In Consolidated Statements Of Profit Or Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Detailed Information About Salaries And Other Employee Expenses Included In Consolidated Statements Of Profit Or Loss [Line Items] | |||
Employee benefits expense | $ 135,440 | $ 109,520 | $ 82,818 |
Cost of product revenue [member] | |||
Disclosure Of Detailed Information About Salaries And Other Employee Expenses Included In Consolidated Statements Of Profit Or Loss [Line Items] | |||
Employee benefits expense | 42,501 | ||
Research and development expenses [member] | |||
Disclosure Of Detailed Information About Salaries And Other Employee Expenses Included In Consolidated Statements Of Profit Or Loss [Line Items] | |||
Employee benefits expense | 52,962 | 71,588 | 49,043 |
General and administrative expenses [member] | |||
Disclosure Of Detailed Information About Salaries And Other Employee Expenses Included In Consolidated Statements Of Profit Or Loss [Line Items] | |||
Employee benefits expense | $ 39,977 | $ 37,932 | $ 33,775 |
Salaries And Other Employee E_5
Salaries And Other Employee Expenses - Additional Information (Details) - Individuals Individuals in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Salaries And Other Employee Expenses [Abstract] | |||
Average number of individuals employed | 858 | 645 | 488 |
Finance Income And Finance Co_3
Finance Income And Finance Cost - Summary Of Detailed Information About Finance Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Details Of Finance Income [Abstract] | |||
Changes in the fair value of derivatives (see Note 27) | $ 1,637 | $ 51,549 | $ 5,393 |
Interest income from cash and cash equivalents | 556 | 18 | 166 |
Other interest income | 356 | 1 | 49 |
Finance income | $ 2,549 | $ 51,568 | $ 5,608 |
Finance Income And Finance Co_4
Finance Income And Finance Cost - Summary Of Detailed Information About Finance Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Details Of Finance Cost [Abstract] | |||
Changes in the fair value of derivatives (see Note 27) | $ 96,981 | $ 2,804 | $ 60,823 |
Interest on debt and borrowings | 71,452 | 106,548 | 91,985 |
Consenting fee (see Note 20) | 7,430 | ||
Loss on remeasurement of bonds (see Note 20) | 6,511 | ||
Interest on lease liabilities (see Note 13) | 6,022 | 6,423 | 5,481 |
Amortization of deferred debt issue costs | 23 | 1,586 | 3,262 |
Finance costs | $ 188,419 | $ 117,361 | $ 161,551 |
Depreciation, Amortization An_3
Depreciation, Amortization And Impairment - Summary Of Detailed Information About Depreciation Amortization And Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation, amortisation and impairment loss (reversal of impairment loss) recognised in profit or loss [abstract] | |||
Depreciation and impairment of property, plant and equipment (see Note 12) | $ 9,807 | $ 10,666 | $ 10,363 |
Depreciation of right of use assets (see Note 13) | 9,869 | 8,699 | 7,188 |
Amortization and impairment of intangible assets (see Note 15) | 3,488 | 4,916 | 1,010 |
Depreciation, amortisation and impairment loss (reversal of impairment loss) recognised in profit or loss | $ 23,164 | $ 24,281 | $ 18,561 |
Depreciation, Amortization An_4
Depreciation, Amortization And Impairment - Summary Of Detailed Information About Depreciation Amortization And Impairment Expense Included In Consolidated Statements Profit Or Loss And Other Comprehensive Income Or Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Detailed Information About Depreciation Amortization And Impairment Expense Included In Consolidated Statements Profit Or Loss And Other Comprehensive Income Or Loss [Line Items] | |||
Depreciation, amortisation and impairment loss (reversal of impairment loss) recognised in profit or loss | $ 23,164 | $ 24,281 | $ 18,561 |
Cost of product revenue [member] | |||
Detailed Information About Depreciation Amortization And Impairment Expense Included In Consolidated Statements Profit Or Loss And Other Comprehensive Income Or Loss [Line Items] | |||
Depreciation, amortisation and impairment loss (reversal of impairment loss) recognised in profit or loss | 10,053 | ||
Research and development expenses [member] | |||
Detailed Information About Depreciation Amortization And Impairment Expense Included In Consolidated Statements Profit Or Loss And Other Comprehensive Income Or Loss [Line Items] | |||
Depreciation, amortisation and impairment loss (reversal of impairment loss) recognised in profit or loss | 9,757 | 21,764 | 16,358 |
General and administrative expenses [member] | |||
Detailed Information About Depreciation Amortization And Impairment Expense Included In Consolidated Statements Profit Or Loss And Other Comprehensive Income Or Loss [Line Items] | |||
Depreciation, amortisation and impairment loss (reversal of impairment loss) recognised in profit or loss | $ 3,354 | $ 2,517 | $ 2,203 |
Audit Fees - Summary Of Detaile
Audit Fees - Summary Of Detailed Information About Audit Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Auditor's remuneration [abstract] | |||
Financial Statement audit fees | $ 2,615 | $ 5,502 | $ 382 |
Other fees, including tax services | 676 | 136 | 607 |
Total fees | $ 3,291 | $ 5,638 | $ 989 |
Income Tax - Schedule Of Taxati
Income Tax - Schedule Of Taxation Recognized In The Consolidated Statements Of Profit Or Loss And Other Comprehensive Income Or Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax | |||
Direct taxes - current | $ 1,015 | $ 706 | $ 248 |
Direct taxes – prior year | (115) | 491 | |
Total current tax | 900 | 1,197 | 248 |
Deferred tax | |||
Current | (54,236) | (48,414) | (121,974) |
Prior year | 15,269 | (477) | |
Total deferred tax | (38,967) | (48,891) | (121,974) |
Total income tax benefit | $ (38,067) | $ (47,694) | $ (121,726) |
Income Tax - Schedule Of The Re
Income Tax - Schedule Of The Reconciling Items Between The Statutory Rate And The Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||
Tax rate | 24.90% | 24.90% | 24.90% |
Effect of tax rate in foreign jurisdictions | (2.40%) | (8.20%) | (4.90%) |
Recognition of tax losses | 27.90% | ||
Permanent differences | (8.90%) | 30.40% | |
Non-recognition of tax losses | (3.80%) | (15.00%) | (6.20%) |
Other items | (2.90%) | (0.10%) | |
Effective tax rate | 6.90% | 32% | 41.70% |
Income Tax - Schedule Of The M
Income Tax - Schedule Of The Movement In Net Deferred Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance at 1 January | $ 170,268 | $ 121,647 |
Deferred tax credited to profit or loss | 38,919 | 48,621 |
Balance at 31 December | 209,187 | 170,268 |
Deferred tax assets | 209,496 | 170,418 |
Deferred tax liabilities | $ (309) | $ (150) |
Income Tax - Schedule Of Defer
Income Tax - Schedule Of Deferred Tax Recognized In The Consolidated Statements Of Financial Position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 209,496 | $ 170,418 | |
Deferred tax liabilities | (309) | (150) | |
Net deferred tax assets | 209,187 | 170,268 | $ 121,647 |
Unused Tax Losses [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 205,290 | 158,330 | |
Other Temporary Differences [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 6,832 | 12,088 | |
Deferred tax liabilities | $ (2,935) | $ (150) |
Income Tax - Schedule Of Expira
Income Tax - Schedule Of Expiration Of Unused Tax Losses (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Disclosure of income tax [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | $ 1,082,511 |
2023-2025 [Member] | |
Disclosure of income tax [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | 35,751 |
2026-2028 [Member] | |
Disclosure of income tax [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | 210,224 |
Later [Member] | |
Disclosure of income tax [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | $ 836,536 |
Income Tax - Additional Inform
Income Tax - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of income tax [Line Items] | |||
Effective tax rate | 6.90% | 32% | 41.70% |
Deferred tax liabilities | $ (309) | $ (150) | |
Deferred tax assets | 209,496 | 170,418 | |
Prior year deferred tax impact | 15,269 | (477) | |
Difference in Measurement Of Customer Relationships And Other Ordinary Timing Differences Temporary differences [member] | |||
Disclosure of income tax [Line Items] | |||
Deferred tax liabilities | 2,900 | 200 | |
Temporary differences [member] | |||
Disclosure of income tax [Line Items] | |||
Deferred tax assets | $ 209,500 | $ 170,400 |
Loss Per Share - Summary of Bas
Loss Per Share - Summary of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share [line items] | |||
Loss for the year | $ (513,580) | $ (101,504) | $ (170,044) |
Weighted average number of ordinary shares outstanding | 197,721,710 | 110,673,309 | 93,648,813 |
Adjusted weighted average shares | 93,648,813 | ||
Basic loss per share | $ (2.6) | $ (0.92) | $ (1.82) |
Diluted loss per share | $ (2.6) | $ (0.92) | $ (1.82) |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share [abstract] | |||
Antidilutive securities excluded from computation of earnings per share | 148,857,998 | 0 | 57,084,128 |
Property, Plant And Equipment -
Property, Plant And Equipment - Summary Of Property, Plant And Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | $ 78,530 | |
Ending balance | 220,594 | $ 78,530 |
Facility [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Ending balance | 114,641 | |
Facility Equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 54,657 | |
Ending balance | 99,148 | 54,657 |
Furniture, Fixtures and Leasehold Improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 23,781 | |
Ending balance | 6,365 | 23,781 |
Computer Equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 92 | |
Ending balance | 440 | 92 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 122,456 | 99,421 |
Reclassification of assets | 0 | |
Additions | 153,219 | 24,259 |
Disposals | (2,959) | |
Translation difference | (1,009) | (1,224) |
Ending balance | 271,707 | 122,456 |
Cost [member] | Facility [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 0 | |
Reclassification of assets | 0 | |
Additions | 115,000 | |
Disposals | 0 | |
Translation difference | 0 | |
Ending balance | 115,000 | 0 |
Cost [member] | Facility Equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 88,510 | 70,308 |
Reclassification of assets | 25,486 | |
Additions | 35,156 | 19,345 |
Disposals | (2,959) | |
Translation difference | (1,043) | (1,143) |
Ending balance | 145,150 | 88,510 |
Cost [member] | Furniture, Fixtures and Leasehold Improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 32,395 | 27,600 |
Reclassification of assets | (25,486) | |
Additions | 2,706 | 4,845 |
Disposals | 0 | |
Translation difference | (17) | (50) |
Ending balance | 9,598 | 32,395 |
Cost [member] | Computer Equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,551 | 1,513 |
Reclassification of assets | 0 | |
Additions | 357 | 69 |
Disposals | 0 | |
Translation difference | 51 | (31) |
Ending balance | 1,959 | 1,551 |
Depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 43,926 | 33,975 |
Reclassification of assets | 0 | |
Disposals | (2,597) | |
Translation difference | (23) | (715) |
Depreciation | 9,807 | 8,574 |
Impairment | 2,092 | |
Ending balance | 51,113 | 43,926 |
Depreciation [member] | Facility [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 0 | |
Reclassification of assets | 0 | |
Disposals | 0 | |
Translation difference | 0 | |
Depreciation | 359 | |
Ending balance | 359 | 0 |
Depreciation [member] | Facility Equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 33,853 | 25,540 |
Reclassification of assets | 5,985 | |
Disposals | (2,597) | |
Translation difference | 9 | (649) |
Depreciation | 8,752 | 6,870 |
Impairment | 2,092 | |
Ending balance | 46,002 | 33,853 |
Depreciation [member] | Furniture, Fixtures and Leasehold Improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 8,614 | 7,016 |
Reclassification of assets | (5,985) | |
Disposals | 0 | |
Translation difference | (17) | (39) |
Depreciation | 621 | 1,637 |
Impairment | 0 | |
Ending balance | 3,233 | 8,614 |
Depreciation [member] | Computer Equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,459 | 1,419 |
Reclassification of assets | 0 | |
Disposals | 0 | |
Translation difference | (15) | (27) |
Depreciation | 75 | 67 |
Impairment | 0 | |
Ending balance | $ 1,519 | $ 1,459 |
Property, Plant And Equipment_2
Property, Plant And Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 16, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, pledged as security | $ 6.8 | $ 122.4 | |
Saemundur [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Percentage of voting equity interests acquired | 99.99% | ||
Asset acquisition consideration transferred | $ 115 | ||
Asset acquisition consideration transferred Convertible Bond | 80 | ||
Asset acquisition consideration transferred Loans Assumed | 30 | ||
Facility [member] | Saemundur [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Asset acquisition consideration transferred Settlements | 5 | ||
Loss on extinguishment of the lease liability | $ 3.9 | ||
Property, Plant And Equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment loss recognised in profit or loss | $ 2.1 |
Leases - Summary of Leases Asse
Leases - Summary of Leases Assets About Right-Of-Use Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |||
Balance at 1 January | $ 126,801 | $ 111,519 | |
Adjustments for indexed leases | 10,201 | 5,358 | |
New or renewed leases | 9,583 | 18,871 | |
Derecognition due to acquisition of Alvotech Facility (see Note 12) | (88,941) | 0 | |
Depreciation | (9,869) | (8,699) | $ (7,188) |
Translation difference | (274) | (248) | |
Balance at 31 December | $ 47,501 | $ 126,801 | $ 111,519 |
Leases - Summary of Classes of
Leases - Summary of Classes of Right-Of-Use Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Detailed Information About Classes Of Right Of Use Assets [Line Items] | |||
Right-of-use assets | $ 47,501 | $ 126,801 | $ 111,519 |
Facilities [member] | |||
Disclosure Of Detailed Information About Classes Of Right Of Use Assets [Line Items] | |||
Right-of-use assets | 41,702 | 122,927 | |
Fleet [member] | |||
Disclosure Of Detailed Information About Classes Of Right Of Use Assets [Line Items] | |||
Right-of-use assets | 339 | 159 | |
Equipment [member] | |||
Disclosure Of Detailed Information About Classes Of Right Of Use Assets [Line Items] | |||
Right-of-use assets | $ 5,460 | $ 3,715 |
Leases - Summary of Lease Liabi
Leases - Summary of Lease Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Detailed Information About Lease Liabilities [Abstract] | ||
Balance at 1 January | $ 122,140 | $ 108,947 |
Adjustments for indexed leases | 10,247 | 5,358 |
New or renewed leases | 7,458 | 18,116 |
Installment payments | (7,655) | (6,595) |
Derecognition due to acquisition of Alvotech Facility (see Note 12) | (80,075) | 0 |
Foreign currency adjustment | (11,682) | (3,744) |
Translation difference | 99 | 58 |
Balance at 31 December | 40,532 | 122,140 |
Current liabilities | (5,163) | (7,295) |
Non-current liabilities | $ 35,369 | $ 114,845 |
Leases - Summary Of Lease Cost
Leases - Summary Of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Detailed Information About Lease Cost [Line Items] | |||
Depreciation expense from right-of-use assets | $ (9,869) | $ (8,699) | $ (7,188) |
Interest expense on lease liabilities | (6,022) | (6,423) | (5,481) |
Foreign currency difference on lease liability | 11,682 | 3,744 | 3,248 |
Loss from extinguishment of lease agreement (see Note 12) | (3,859) | 0 | (241) |
Total amount recognized in profit and loss | (8,068) | (11,378) | (9,662) |
Facilities [member] | |||
Disclosure Of Detailed Information About Lease Cost [Line Items] | |||
Depreciation expense from right-of-use assets | (9,423) | (8,228) | (6,955) |
Fleet [member] | |||
Disclosure Of Detailed Information About Lease Cost [Line Items] | |||
Depreciation expense from right-of-use assets | (119) | (38) | (7) |
Equipment [member] | |||
Disclosure Of Detailed Information About Lease Cost [Line Items] | |||
Depreciation expense from right-of-use assets | $ (327) | $ (433) | $ (226) |
Leases - Summary of Maturity An
Leases - Summary of Maturity Analysis For Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Detailed Information About Maturity Analysis For Lease Liabilities [Line Items] | ||
Gross lease liabilities | $ 48,434 | $ 180,054 |
Less than one year [member] | ||
Disclosure Of Detailed Information About Maturity Analysis For Lease Liabilities [Line Items] | ||
Gross lease liabilities | 6,000 | 13,164 |
One to five years [member] | ||
Disclosure Of Detailed Information About Maturity Analysis For Lease Liabilities [Line Items] | ||
Gross lease liabilities | 20,160 | 49,379 |
Thereafter [member] | ||
Disclosure Of Detailed Information About Maturity Analysis For Lease Liabilities [Line Items] | ||
Gross lease liabilities | $ 22,274 | $ 117,511 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Presentation of leases for lessee [abstract] | ||
Expense relating to short-term leases and low value leases for which recognition exemption has been used | $ 0.1 | $ 0.1 |
Goodwill - Summary of Goodwill
Goodwill - Summary of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reconciliation of changes in goodwill [abstract] | ||
Balance as of 1 January | $ 12,367 | $ 13,427 |
Translation difference | (724) | (1,060) |
Balance as of 31 December | $ 11,643 | $ 12,367 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Goodwill [Line Items] | ||
Growth rate used to extrapolate cash flow projections | 5% | 5% |
Discount rate applied to cash flow projections | 27.60% | 21.50% |
Goodwill [member] | ||
Disclosure of Goodwill [Line Items] | ||
Impairment loss recognised in profit or loss, goodwill | $ 0 | $ 0 |
Intangible Assets - Summary of
Intangible Assets - Summary of Detailed Information About Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | $ 21,509 | ||
Amortization | 733 | $ 923 | $ 1,010 |
Ending balance | 25,652 | 21,509 | |
Software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 5,844 | ||
Ending balance | 10,341 | 5,844 | |
Customer relationships [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 665 | ||
Ending balance | 311 | 665 | |
Intellectual property rights [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 15,000 | ||
Ending balance | 15,000 | 15,000 | |
Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 26,106 | 10,131 | |
Additions | 7,682 | 20,186 | |
Impairment | (2,755) | (3,993) | |
Translation difference | (168) | (218) | |
Ending balance | 30,865 | 26,106 | 10,131 |
Gross carrying amount [member] | Software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 8,777 | 7,603 | |
Additions | 7,682 | 5,186 | |
Impairment | (2,755) | (3,993) | |
Translation difference | (20) | (19) | |
Ending balance | 13,684 | 8,777 | 7,603 |
Gross carrying amount [member] | Customer relationships [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 2,329 | 2,528 | |
Translation difference | (148) | (199) | |
Ending balance | 2,181 | 2,329 | 2,528 |
Gross carrying amount [member] | Intellectual property rights [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 15,000 | ||
Additions | 15,000 | ||
Ending balance | 15,000 | 15,000 | |
Amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 4,597 | 3,796 | |
Translation difference | (117) | (122) | |
Amortization | 733 | 923 | |
Ending balance | 5,213 | 4,597 | 3,796 |
Amortization [member] | Software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 2,933 | 2,351 | |
Translation difference | (13) | (9) | |
Amortization | 423 | 591 | |
Ending balance | 3,343 | 2,933 | 2,351 |
Amortization [member] | Customer relationships [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 1,664 | 1,445 | |
Translation difference | (104) | (113) | |
Amortization | 310 | 332 | |
Ending balance | $ 1,870 | $ 1,664 | $ 1,445 |
Intangible Assets - Summary o_2
Intangible Assets - Summary of Impairment Loss and Reversal of Impairment Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Amortisation expenses | $ 733 | $ 923 | $ 1,010 |
Cost of sales [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Amortisation expenses | 471 | ||
Research and Development [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Amortisation expenses | 324 | 357 | |
General and Administrative [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Amortisation expenses | $ 262 | $ 599 | $ 653 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cost of sales [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Impairment charge expense | $ 2,100,000 | |
Research and Development [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Impairment charge expense | 700,000 | |
Intangible Assets With Finite Lived [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Impairment charge | 2,800,000 | $ 4,000,000 |
Intangible assets with indefinite useful life [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Impairment charge | $ 0 |
Cash And Cash Equivalents - Sum
Cash And Cash Equivalents - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 66,427 | $ 17,556 | $ 31,689 | $ 67,403 |
US dollars [member] | ||||
Disclosure of Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 10,377 | 15,798 | ||
Non US [member] | ||||
Disclosure of Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 56,050 | $ 1,758 |
Cash And Cash Equivalents - S_2
Cash And Cash Equivalents - Summary of Restricted Cash (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restricted Cash [Abstract] | |
Beginning balance | $ 10,087 |
Additions during the year | 14,914 |
Interest income | 186 |
Ending balance | $ 25,187 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Classes of current inventories [abstract] | ||
Raw materials and supplies | $ 41,961 | $ 26,590 |
Work in progress | 29,450 | 13,730 |
Finished goods | 2,121 | |
Inventory reserves | (2,062) | (1,262) |
Balance at 31 December | $ 71,470 | $ 39,058 |
Inventories - Additional Inform
Inventories - Additional Information (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Cost of sales [member] | |
Disclosure of Inventories [Line Items] | |
Cost of inventories | $ 8.5 |
Other Current Assets - Summary
Other Current Assets - Summary of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Current Assets [Abstract] | ||
Value-added tax | $ 6,468 | $ 4,725 |
Prepaid expenses | 20,601 | 9,320 |
Proceeds receivable from Convertible Bonds | 3,520 | |
Derivative asset | 851 | |
Other short-term receivables | 1,509 | 691 |
Total | $ 32,949 | $ 14,736 |
Share Capital - Summary of Shar
Share Capital - Summary of Share Capital and Share Premium (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of classes of share capital [line items] | ||
Shares | 252,160,087 | 13,481,799 |
Share capital and share premium | $ 1,060,558 | $ 1,000,253 |
Class A ordinary shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Shares | 13,386,098 | |
Share capital and share premium | $ 997,824 | |
Class B ordinary shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Shares | 95,701 | |
Share capital and share premium | $ 2,429 | |
Ordinary Shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Shares | 252,160,087 | |
Share capital and share premium | $ 1,060,558 |
Share Capital - Summary of Move
Share Capital - Summary of Movements in Ordinary Shares, Share Capital and Share Premium (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclousre of Detailed Information About Movements in Ordinary Shares, Share Capital and Share Premium [Line Items] | |||
Beginning Balance (Shares) | 893,060 | ||
Ending Balance (Shares) | 1,133,131 | 893,060 | |
Beginning Balance | $ (135,612) | $ (867,243) | $ (767,538) |
Issuance of Ordinary Shares | 65,035 | ||
Ending Balance | (564,416) | (135,612) | (867,243) |
Share capital [member] | |||
Disclousre of Detailed Information About Movements in Ordinary Shares, Share Capital and Share Premium [Line Items] | |||
Beginning Balance | 135 | 73 | 69 |
Share issue | 62 | 4 | |
PIPE Financing | 175 | ||
Elimination of Predecessor Ordinary Value | (135) | ||
Issuance of Ordinary Shares | 1,866 | ||
SARs Settlement | 35 | ||
Settlement of related party loans with Ordinary Shares | 50 | ||
Ending Balance | 2,126 | 135 | 73 |
Share premium [member] | |||
Disclousre of Detailed Information About Movements in Ordinary Shares, Share Capital and Share Premium [Line Items] | |||
Beginning Balance | 1,000,118 | 166,740 | 102,359 |
Share issue | 833,378 | 64,997 | |
Transaction costs arising on share issue | (5,562) | (616) | |
PIPE Financing | 174,755 | ||
Elimination of Predecessor Ordinary Value | 135 | ||
Issuance of Ordinary Shares | 63,169 | ||
Predecessor Earn Out Shares | (227,500) | ||
OACB Earn Out Shares | (9,100) | ||
SARs Settlement | 30,267 | ||
Settlement of related party loans with Ordinary Shares | 32,150 | ||
Ending Balance | 1,058,432 | 1,000,118 | 166,740 |
Issued capital and share premium [member] | |||
Disclousre of Detailed Information About Movements in Ordinary Shares, Share Capital and Share Premium [Line Items] | |||
Beginning Balance | 1,000,253 | 166,813 | 102,428 |
Share issue | 833,440 | 65,001 | |
Transaction costs arising on share issue | (5,562) | (616) | |
PIPE Financing | 174,930 | ||
Predecessor Earn Out Shares | (227,500) | ||
OACB Earn Out Shares | (9,100) | ||
SARs Settlement | 30,302 | ||
Settlement of related party loans with Ordinary Shares | 32,200 | ||
Ending Balance | $ 1,060,558 | $ 1,000,253 | $ 166,813 |
Ordinary Shares [member] | |||
Disclousre of Detailed Information About Movements in Ordinary Shares, Share Capital and Share Premium [Line Items] | |||
PIPE Financing, Shares | 17,493,000 | ||
Elimination of Predecessor Ordinary Shares, Shares | (13,481,799) | ||
Issuance of Ordinary, Shares | 186,576,505 | ||
Predecessor Earn Out Shares, Shares | 38,330,000 | ||
OACB Earn Out Shares | 1,250,000 | ||
SARs Settlement, Shares | 3,510,582 | ||
Settlement of related party loans with Ordinary Shares, Shares | 5,000,000 | ||
Ending Balance (Shares) | 252,160,087 | ||
Predecessor Ordinary Shares [member] | |||
Disclousre of Detailed Information About Movements in Ordinary Shares, Share Capital and Share Premium [Line Items] | |||
Beginning Balance (Shares) | 13,481,799 | 7,259,139 | 6,937,062 |
Share issue, Shares | 6,222,660 | 322,077 | |
Ending Balance (Shares) | 13,481,799 | 7,259,139 |
Share Capital - Additional info
Share Capital - Additional information (Details) - USD ($) | 12 Months Ended | |||
Jun. 15, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of classes of share capital [line items] | ||||
Number of shares outstanding | 1,133,131 | 893,060 | ||
Stock issued under PIPE financing shares | 17,493,000 | |||
Dividends | $ 0 | $ 0 | $ 0 | |
Common stock held by subsidiary | 27,072,167 | |||
Class A and Class B Ordinary Shares [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Shares authorized value | $ 99,700,000 | $ 99,700,000 | ||
Number of shares authorised | 99,961,829 | 99,961,829 | ||
Par value per share | $ 0.01 | $ 0.01 | ||
Ordinary Shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares outstanding | 252,160,087 | |||
Ordinary Shares [member] | Exchange of Predecessor Ordinary Shares [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Capital reorganization event shares issued | 180,600,000 | |||
Ordinary Shares [member] | Exchange of Class A OACB Ordinary Shares [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Capital reorganization shares issued | 5,000,000 | |||
Predecessor Earn Out Shares [member] | Exchange of Predecessor Ordinary Shares [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Capital reorganization event shares issued | 38,330,000 | |||
Class A OACB Ordinary Shares [Member] | Exchange of Class A OACB Ordinary Shares [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares outstanding | 976,505 | |||
Class B OACB Ordinary Shares [Member] | Exchange of Class A OACB Ordinary Shares [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares outstanding | 6,250,000 | |||
OACB Earn Out Shares [member] | Exchange of Class A OACB Ordinary Shares [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Capital reorganization shares issued | 1,250,000 |
Borrowings - Summary of consoli
Borrowings - Summary of consolidated statements of financial position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | |||
Other borrowings | $ 71,242 | $ 6,782 | |
Total outstanding borrowings, net of debt issue costs | 764,570 | 400,911 | $ 567,899 |
Less: current portion of borrowings | (19,916) | (2,771) | |
Total non-current borrowings | 744,654 | 398,140 | |
Senior Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Bonds issued | 530,506 | 0 | |
Aztiq Convertible Bond [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Bonds issued | 65,793 | 0 | |
Total outstanding borrowings, net of debt issue costs | 65,800 | ||
Alvogen Facility [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Loans received | 64,588 | 0 | |
Convertible Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Bonds issued | 32,441 | 0 | |
Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Bonds issued | $ 0 | $ 394,129 |
Borrowings - Summary of movemen
Borrowings - Summary of movements in the group's outstanding borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [abstract] | ||
Borrowings | $ 400,911 | $ 567,899 |
Borrowings converted to equity | 0 | (105,501) |
Redemption of borrowings | 0 | (34,899) |
Paid Payment In Kind Interest | 0 | (19,200) |
Premium on redeemed and unredeemed bonds | 0 | 15,472 |
Change in fair value upon extinguishment of convertible shareholder loans | 32,114 | |
Recognition of deferred debt issue costs | (2,889) | 0 |
Accretion/derecognition of borrowings discount | 35,065 | 5,506 |
Recognition of new borrowings discount | (43,241) | (34,302) |
Proceeds from new borrowings | 467,196 | 114,282 |
Loans from related party converted to equity | (50,000) | (240,542) |
Repayments of borrowings | (83,951) | (2,597) |
Accrued interest | 40,424 | 89,958 |
Amortization of deferred debt issue costs | 23 | 12,754 |
Foreign currency exchange difference | 1,032 | (33) |
Borrowings | $ 764,570 | $ 400,911 |
Borrowings - Schedule of maturi
Borrowings - Schedule of maturities of outstanding borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 764,570 | $ 400,911 | $ 567,899 |
Within one year [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 19,916 | 2,771 | |
Within two years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 3,804 | 2,920 | |
Within three years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 696,646 | 622 | |
Within four years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 3,374 | 394,222 | |
Thereafter [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 40,830 | $ 376 |
Borrowings - Additional Infroma
Borrowings - Additional Infromation (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 20, 2022 | Dec. 09, 2022 | Nov. 16, 2022 | Aug. 08, 2022 | Jul. 12, 2022 | Jun. 01, 2022 | Apr. 12, 2022 | Apr. 11, 2022 | Mar. 31, 2022 | Mar. 29, 2022 | Mar. 11, 2022 | Feb. 22, 2022 | Dec. 07, 2021 | Jun. 24, 2021 | Dec. 14, 2018 | Mar. 31, 2022 | Mar. 29, 2022 | Dec. 31, 2022 | Jun. 24, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2022 | May 09, 2022 | |
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings | $ 764,570 | $ 764,570 | $ 400,911 | $ 567,899 | ||||||||||||||||||||
Proceeds from borrowings | 193,678 | 113,821 | 30,000 | |||||||||||||||||||||
Extinguishment of borrowings | $ 63,200 | |||||||||||||||||||||||
Extinguishment of borrowings accrued interest | $ 3,200 | |||||||||||||||||||||||
Repayments of borrowings | $ 34,714 | 37,496 | 2,896 | |||||||||||||||||||||
Ordinary shares [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Issue of Shares on Settlement of Related Party Loans Shares | 5,000,000 | |||||||||||||||||||||||
Convertible Bond [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, maturity | later of the (i) 20 December 2025 or (ii) 91 days after the earlier of the full redemption or the final maturity date of the Senior Bonds. | |||||||||||||||||||||||
Borrowings redeemption conversion price | $ 10 | |||||||||||||||||||||||
Borrowings conversion feature fair value | $ 24,900 | |||||||||||||||||||||||
Aztiq Convertible Bond [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 12.50% | |||||||||||||||||||||||
Debt instrument face value | $ 80,000 | |||||||||||||||||||||||
Borrowings, maturity | (i) 16 November 2025 or (ii) 91 days after the earlier of the full redemption or the final maturity date of the Senior Bonds. | |||||||||||||||||||||||
Bonds payable | 65,793 | $ 65,793 | 0 | |||||||||||||||||||||
Interest payable | 500 | 500 | ||||||||||||||||||||||
Borrowings redeemption conversion price | $ 10 | |||||||||||||||||||||||
Borrowings | 65,800 | 65,800 | ||||||||||||||||||||||
Aztiq Convertible Bond [member] | Aztiq Conversion Feature [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | $ 16,000 | |||||||||||||||||||||||
Aztiq Facility Loans [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Asset acquisition consideration loans assumed | $ 30,000 | |||||||||||||||||||||||
Alvogen Facility [Member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | 110,000 | 110,000 | ||||||||||||||||||||||
Proceeds from borrowings | $ 50,000 | $ 25,000 | ||||||||||||||||||||||
Borrowings repurchased face amount | $ 25,000 | |||||||||||||||||||||||
Issue of Shares on Settlement of Related Party Loans Shares | 2,500,000 | |||||||||||||||||||||||
Repayments of borrowings | 50,000 | |||||||||||||||||||||||
Aztiq Facility [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Proceeds from borrowings | $ 25,000 | |||||||||||||||||||||||
Borrowings repurchased face amount | $ 25,000 | |||||||||||||||||||||||
Issue of Shares on Settlement of Related Party Loans Shares | 2,500,000 | |||||||||||||||||||||||
Alvogen Facility and Aztiq Facility [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings repurchased face amount | $ 50,000 | |||||||||||||||||||||||
Issue of Shares on Settlement of Related Party Loans Value | $ 32,200 | |||||||||||||||||||||||
Alvogen Loan [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 10% | 10% | ||||||||||||||||||||||
Debt instrument face value | $ 20,000 | $ 40,000 | ||||||||||||||||||||||
Loan agreement [Member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 10% | |||||||||||||||||||||||
Proceeds from borrowings | $ 20,000 | $ 20,000 | $ 20,000 | |||||||||||||||||||||
Aggregate borrowings indebtedness | $ 40,000 | |||||||||||||||||||||||
Alvogen Subordinated Loan [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 17.50% | |||||||||||||||||||||||
Debt instrument face value | $ 63,300 | |||||||||||||||||||||||
Borrowings, maturity | A repayment date of 91 days after the full redemption or the final maturity date of the Senior Bonds; | |||||||||||||||||||||||
Interest payable | $ 3,300 | |||||||||||||||||||||||
Borrowings | 113,200 | |||||||||||||||||||||||
Proceeds from borrowings | 50,000 | |||||||||||||||||||||||
Repayments of borrowings | $ 50,000 | |||||||||||||||||||||||
Alvogen Loan Warrants [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings | $ 1,300 | |||||||||||||||||||||||
Percnetage of warrants issued representing fully diluted ordinary share | 4% | |||||||||||||||||||||||
Alvogen Subordinated Loan and Alvogen Loan Warrants [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings | 64,600 | 64,600 | ||||||||||||||||||||||
BCA Framework Agreement [member] | Convertible Ordinary Shares [member] | Ordinary shares [member] | Class A Common Stock [Member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Stock shares issued during the period exercise of warrants | 1,522,103 | |||||||||||||||||||||||
Increase decrease in equity due to exercise of warrants | $ 101,300 | |||||||||||||||||||||||
Stock shares issued during the period conversion of convertible securities | 2,306,555 | |||||||||||||||||||||||
Issue of convertible instruments | $ 166,800 | |||||||||||||||||||||||
BCA Framework Agreement [member] | Convertible Ordinary Shares [member] | Ordinary shares [member] | Class A Common Stock [Member] | Payment Of In Kind Accrued Interest As A Result Of Warrant Exercise [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Stock shares issued during the period exercise of warrants | 1,137,248 | |||||||||||||||||||||||
Increase decrease in equity due to exercise of warrants | $ 73,700 | |||||||||||||||||||||||
BCA Framework Agreement [member] | Convertible Shareholder Loan [member] | Ordinary shares [member] | Class A Common Stock [Member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Gain loss on extinguishment of debt | 149,200 | |||||||||||||||||||||||
BCA Framework Agreement [member] | Convertible Shareholder Loan [member] | Ordinary shares [member] | Class A Common Stock [Member] | Finance Income [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Gain losses on changes in fair value of derivatives | $ 48,700 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | $ 300,000 | |||||||||||||||||||||||
Borrowings, maturity | June 2025 | |||||||||||||||||||||||
Payment in kind interest rate percentage | 15% | |||||||||||||||||||||||
Put option percentage | 15% | |||||||||||||||||||||||
Repayment of bonds | $ 55,300 | |||||||||||||||||||||||
Premium payment on bonds | 6,100 | |||||||||||||||||||||||
Extension premium to bond holders | 8,100 | |||||||||||||||||||||||
Additional extension premium to bondholders | 2,600 | |||||||||||||||||||||||
Prepayment penalty percentage on bonds | 2% | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Principal Component [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Bonds payable | $ 363,100 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Interest Component [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Bonds payable | 31,000 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Amendment To Outstanding Bonds January To June Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Gain losses recognized in profit or loss excluding exchange differences fair value measurement liabilities | 6,500 | |||||||||||||||||||||||
Minimum amount of restricted cash to be maintained | 25,000 | 25,000 | ||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Amendment To Outstanding Bonds January To June Two Thousand And Twenty Two [member] | Consent Fees To Bondholders [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Consent fees to bond holders | 7,400 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Amendment To Outstanding Bonds November Sixteenth Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Bonds payable | 530,500 | 530,500 | ||||||||||||||||||||||
Gain Loss On Extinguishment Of Debt Including Change In Fair Value | 40,900 | |||||||||||||||||||||||
Transaction costs | 12,100 | |||||||||||||||||||||||
Net cash proceeds from the transaction | 57,900 | |||||||||||||||||||||||
Recognition of derivative liabilities at fair value | 15,400 | |||||||||||||||||||||||
Interest payable | 2,600 | 2,600 | ||||||||||||||||||||||
Carrying value of debt extinguished | $ 440,100 | 440,100 | ||||||||||||||||||||||
Accrued interest on debt extiguished | 4,800 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Issued To The Existing Noteholder [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Proceeds from the issuance of bonds | 113,800 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Issued To A New Bond Holder [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Proceeds from the issuance of bonds | 113,800 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Issued To The Existing And A New Bond Holder [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | 397,400 | $ 397,400 | ||||||||||||||||||||||
Issues fair value measurement liabilities | $ 358,800 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Derivatives Relating To Bonds [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Gain losses on changes in fair value of derivatives | $ 5,400 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Contingently Issuable Penny Warrants [member] | Amendment To Outstanding Bonds November Sixteenth Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Class of warrants or rights exercise price per share | $ 0.01 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Senior Bond Interest Rate Feature [member] | Amendment To Outstanding Bonds November Sixteenth Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Recognition of derivative asset | 4,600 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Senior Bond Warrants [Member] | Amendment To Outstanding Bonds November Sixteenth Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Recognition of derivative liabilities at fair value | $ 528,200 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Tranche B [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | $ 175,000 | |||||||||||||||||||||||
Percentage of bonds if the bonds are converted into shares | 25% | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Tranche B [member] | Contingently Issuable Penny Warrants [member] | Amendment To Outstanding Bonds November Sixteenth Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Warrants issuable as a percentage of fully diluted ordinary shares | 1% | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Tranche A [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | $ 125,000 | |||||||||||||||||||||||
Percentage of bonds if the bonds are converted into shares | 10% | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Tranche A [member] | Contingently Issuable Penny Warrants [member] | Amendment To Outstanding Bonds November Sixteenth Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Warrants issuable as a percentage of fully diluted ordinary shares | 1.50% | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Substantial Modification Of Convertible Bonds And Derivative Liabilities [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Gain losses on changes in fair value of derivatives | $ 0 | |||||||||||||||||||||||
Gain losses recognized in profit or loss excluding exchange differences fair value measurement liabilities | 2,600 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Increase In The Face Value Of The Bonds [member] | Amendment To Outstanding Bonds November Sixteenth Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | $ 70,000 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Reduction In Interest Rate If Additional Shares Are Issued Within Six Months [member] | Amendment To Outstanding Bonds January To June Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 7.50% | 7.50% | ||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Ordinary shares [member] | Class A Common Stock [Member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Stock shares issued during the period conversion of convertible securities | 455,687 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Ordinary shares [member] | Class A Common Stock [Member] | Principal And Accrued Interest Component. [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Issue of convertible instruments | $ 100,700 | |||||||||||||||||||||||
Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Ordinary shares [member] | Class A Common Stock [Member] | Premium Component [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Issue of convertible instruments | $ 4,800 | |||||||||||||||||||||||
Landsbankinn hf [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | 18,300 | |||||||||||||||||||||||
Borrowings | $ 14,000 | |||||||||||||||||||||||
Landsbankinn hf [member] | Facility Loans [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | $ 48,800 | |||||||||||||||||||||||
Interest payable | $ 300 | $ 300 | ||||||||||||||||||||||
Borrowings | 48,800 | 48,800 | ||||||||||||||||||||||
Proceeds from borrowings net of transaction costs | 17,200 | |||||||||||||||||||||||
Landsbankinn hf [member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate. [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, variable interest rate | 4.95% | |||||||||||||||||||||||
Landsbankinn hf [member] | Matured on August 2029 [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | $ 1,800 | |||||||||||||||||||||||
Borrowings, maturity | August 2029 | |||||||||||||||||||||||
Borrowings | 1,800 | 1,800 | ||||||||||||||||||||||
Landsbankinn hf [member] | Matured on August 2029 [member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate. [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, variable interest rate | 4.25% | |||||||||||||||||||||||
Landsbankinn hf [member] | Matured on February 2029 [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | $ 3,200 | |||||||||||||||||||||||
Borrowings, maturity | February 2029 | |||||||||||||||||||||||
Borrowings | $ 2,900 | |||||||||||||||||||||||
Landsbankinn hf [member] | Matured on February 2029 [member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate. [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, variable interest rate | 4.25% | |||||||||||||||||||||||
Arion banki hf [member] | Facility Loans [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings repurchase amount | $ 30,900 | |||||||||||||||||||||||
Origo hf. and Arion banki hf. [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings | $ 200 | $ 200 | $ 300 | |||||||||||||||||||||
Weighted average [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 12.41% | 12.41% | 14.83% | 14.85% | ||||||||||||||||||||
Bottom of range [member] | Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Amendment To Outstanding Bonds January To June Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 7.50% | |||||||||||||||||||||||
Bottom of range [member] | Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Amendment To Outstanding Bonds November Sixteenth Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 10.75% | |||||||||||||||||||||||
Bottom of range [member] | Landsbankinn hf [member] | Facility Loans [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 8.30% | |||||||||||||||||||||||
Top of range [member] | Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Amendment To Outstanding Bonds January To June Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 10% | |||||||||||||||||||||||
Top of range [member] | Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Amendment To Outstanding Bonds November Sixteenth Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 12% | |||||||||||||||||||||||
Top of range [member] | Landsbankinn hf [member] | Facility Loans [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 9.30% | |||||||||||||||||||||||
After The Terms Of The Second Amendment [member] | Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Amendment To Outstanding Bonds November Sixteenth Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | $ 525,700 | $ 525,700 | ||||||||||||||||||||||
Before The Terms Of The Second Amendment [member] | Convertible Bond Agreement Two Thousand And Eighteen [member] | Convertible Bond [member] | Amendment To Outstanding Bonds November Sixteenth Two Thousand And Twenty Two [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | 455,700 | 455,700 | ||||||||||||||||||||||
Financial liabilities at amortised cost, category [member] | Aztiq Convertible Bond [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | $ 64,000 | |||||||||||||||||||||||
Borrowings Tranche One [member] | Alvogen Facility [Member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Proceeds from borrowings | $ 15,000 | |||||||||||||||||||||||
Borrowings Tranche One [member] | Aztiq Facility [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Proceeds from borrowings | $ 15,000 | |||||||||||||||||||||||
Borrowings Tranche Two [member] | Alvogen Facility [Member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Proceeds from borrowings | $ 10,000 | |||||||||||||||||||||||
Borrowings Tranche Two [member] | Aztiq Facility [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Proceeds from borrowings | $ 10,000 | |||||||||||||||||||||||
Borrowings Tranche A [member] | Convertible Bond [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 15% | |||||||||||||||||||||||
Debt instrument face value | $ 59,100 | |||||||||||||||||||||||
Borrowings | 31,900 | 31,900 | ||||||||||||||||||||||
Proceeds from borrowings | $ 3,500 | |||||||||||||||||||||||
Borrowings Tranche B [member] | Convertible Bond [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Borrowings, interest rate | 12.50% | |||||||||||||||||||||||
Debt instrument face value | $ 600 | |||||||||||||||||||||||
Borrowings | 500 | 500 | ||||||||||||||||||||||
USD SOFR [member] | Other Borrowings Financial Institution [member] | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Debt instrument face value | $ 25,900 | $ 25,900 | ||||||||||||||||||||||
Borrowings, variable interest rate | 4.95% | 4.95% | ||||||||||||||||||||||
Borrowings | $ 3,200 | $ 3,200 | $ 5,700 |
Long-Term Incentive Plans - Sum
Long-Term Incentive Plans - Summary Of Significant Assumptions Used In The Finnerty Model To Determine The Fair Value Of The Ordinary Shares To Be Issued (Details) - Market Approach [member] | Jun. 15, 2022 USD ($) yr |
Disclosure Of Significant assumptions used in the Finnerty model to determine the fair value of the Ordinary Shares to be issued Explanatory [Line Items] | |
Asset price | $ 9.38 |
Term (years) | yr | 1 |
Volatility rate | 35% |
Dividend yield | 0% |
Indicated put option value | $ 0.75 |
Discount for lack of marketability | 8% |
Long-Term Incentive Plans - Sch
Long-Term Incentive Plans - Schedule Of Significant Assumptions Used In The Black-Scholes-Merton Pricing Model (Details) - Option pricing model [member] | 12 Months Ended | |
Dec. 31, 2021 USD ($) yr | Dec. 31, 2020 USD ($) yr | |
Disclosure Of Indirect Measurement Of Fair Value Of Goods Or Services Received Share Options Granted During Period Explanatory [Line Items] | ||
Risk-free interest rate | 0.10% | 0.10% |
Volatility rate | 42% | 42% |
Expected dividend yield | 0% | 0% |
Share price at valuation | $ 1,806 | $ 1,465 |
Bottom of range [member] | ||
Disclosure Of Indirect Measurement Of Fair Value Of Goods Or Services Received Share Options Granted During Period Explanatory [Line Items] | ||
Expected life | yr | 0.4 | 1 |
Strike price | $ 925 | $ 904 |
Top of range [member] | ||
Disclosure Of Indirect Measurement Of Fair Value Of Goods Or Services Received Share Options Granted During Period Explanatory [Line Items] | ||
Expected life | yr | 1 | 1.2 |
Strike price | $ 1,695 | $ 1,296 |
Long-Term Incentive Plans - S_2
Long-Term Incentive Plans - Schedule Of Movements In The Group's Employee Incentive Plan Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of net defined benefit liability (asset) [abstract] | ||
Beginning balance | $ 14,935 | $ 10,501 |
Additions | 5,075 | 6,648 |
Payments | (7,693) | (2,214) |
Balance at 31 December prior to reclassification | 12,317 | 14,935 |
Reclassified to other current liabilities | (11,773) | |
Ending balance | $ 544 | $ 14,935 |
Long-Term Incentive Plans - Ad
Long-Term Incentive Plans - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 01, 2022 USD ($) | Jun. 15, 2022 USD ($) | Jul. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) shares Employees | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | |
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Number of share options granted in share-based payment arrangement | shares | 0 | 0 | ||||
Payment to employee | $ (7,693) | $ (2,214) | ||||
Increase decrease through other current liabilities and income net defined benefit liability asset | 1,500 | |||||
Employee benefits expense | 135,440 | 109,520 | $ 82,818 | |||
Sharebased compensation arrangement by sharebased payment award options vested In periodon settlement date | $ 3,800 | |||||
Net defined benefit liability (asset) | $ 544 | 14,935 | 10,501 | |||
Former Employees [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Number of employees | Employees | 2 | |||||
Number of year for issuing Shares after the closing of the Business Combination | 1 year | |||||
Payment to employee | $ 1,500 | |||||
Existing Employees [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Number of employees | Employees | 1 | |||||
Number of year for issuing Shares after the closing of the Business Combination | 1 year | |||||
Payment to employee | $ 1,500 | |||||
Bottom of Range [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Expected volatility share options granted value | $ 500,000 | |||||
Top of Range [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Expected volatility share options granted value | $ 5,000,000 | |||||
Ordinary Shares [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
increase in equity | $ 31,000 | |||||
Ordinary Shares [member] | Former Employees [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Number of share options exercisable in share-based payment arrangement | shares | 1,755,291 | |||||
Ordinary Shares [member] | Existing Employees [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Number of share options exercisable in share-based payment arrangement | shares | 150,000 | |||||
Share Appreciation Rights [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Increase (decrease) in net defined benefit liability (asset) | $ 36,800 | |||||
Gains losses on extinguishment of share | $ 300 | |||||
Net defined benefit liability (asset) | 41,400 | |||||
Increase (decrease) in net defined benefit liability (asset) resulting from expense (income) in profit or loss | 11,300 | $ 7,800 | ||||
Sharebased compensation arrangement by sharebased payment award options vested in period | $ 36,600 | |||||
Settlement of cash option as a liability fairvalue | 800 | |||||
Settlement of share option as a equity fairvalue | 700 | |||||
Other current financial liabilities | 700 | |||||
Share Appreciation Rights [member] | Selling, General And Administrative Expense [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Employee benefits expense | $ 4,300 |
Share-Based Payments - Summary
Share-Based Payments - Summary of Movements in RSUs (Details) - Restricted Share Units [member] | 12 Months Ended |
Dec. 31, 2022 shares $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of RSUs , Granted | shares | 7,659,049 |
Number of RSUs , Vested | shares | (679,563) |
Number of RSUs , Outstanding | shares | 6,979,486 |
Weighted average fair value, Granted | $ / shares | $ 6.68 |
Weighted average fair value, Vested | $ / shares | 6.3 |
Weighted average fair value, Outstanding | $ / shares | $ 6.72 |
Share-Based Payments - Summar_2
Share-Based Payments - Summary of share-based payment expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Expense from share-based payment transactions | $ 10,317 |
Cost of product revenue [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Expense from share-based payment transactions | 1,522 |
Research and development expenses [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Expense from share-based payment transactions | 2,994 |
General and administrative expenses [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Expense from share-based payment transactions | $ 5,801 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Disclosure Of Share Based Payment Arrangements [Abstract] | |
Description of vesting requirements for share-based payment arrangement | Compensation expense for RSUs is determined based upon the market price of the Ordinary Shares underlying the awards on the date of grant and expensed over the vesting period, which is generally a one to four-year period, with a 1-year cliff vesting period and subsequent monthly vesting, resulting from participates completing a service condition. |
Share-based payment expense | $ 10.3 |
Litigation - Additional Informa
Litigation - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Litigation [Abstract] | |||
Legal expenses | $ 8.7 | $ 13.5 | $ 7.9 |
Related Parties - Summary of Re
Related Parties - Summary of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | $ 21,141 | $ 39,940 | $ 46,175 |
Sold service | 818 | 3,715 | 2,640 |
Receivables | 1,548 | 1,111 | |
Payables / loans | 163,289 | 114,303 | |
Alvogen Lux Holdings S.à r.l. [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 5,415 | 9,383 | 9,452 |
Sold service | 1,134 | ||
Payables / loans | 64,588 | ||
Aztiq Fjárfestingar ehf [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 216 | 120 | |
Payables / loans | 20 | ||
Aztiq Consulting ehf [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 442 | ||
Payables / loans | 25 | ||
ATP Holdings ehf [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 1,254 | ||
Receivables | 765 | ||
Payables / loans | 81,254 | ||
Fasteignafélagið Sæmundur hf. [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 7,189 | 7,762 | |
Payables / loans | 83,770 | ||
Fasteignafélagið Sæmundur hf. [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 8,111 | ||
Fasteignafélagið Eyjólfur hf [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sold service | 196 | ||
Alvogen Iceland ehf [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 465 | 454 | 2,268 |
Sold service | 174 | 2,308 | 1,310 |
Receivables | 109 | ||
Payables / loans | 484 | 14 | |
Alvogen ehf [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 6 | 40 | |
Sold service | 68 | 2 | |
Receivables | 1 | 2 | |
Payables / loans | 0 | ||
Lotus Pharmaceuticals Co. Ltd [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 3,060 | ||
Sold service | 3 | 312 | |
Receivables | 2 | 295 | |
Payables / loans | 7,440 | 7,440 | |
Lotus International Pte. Ltd [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sold service | 4 | ||
Receivables | 3 | ||
Alvogen Emerging Markets [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 98 | 238 | 68 |
Payables / loans | 16 | ||
Alvogen Korea co. Ltd [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sold service | 1 | 9 | |
Alvogen Inc [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 585 | 89 | 67 |
Sold service | 266 | 654 | |
Receivables | 12 | 301 | |
Payables / loans | 222 | ||
Alvotech & CCHN Biopharmaceutical Co., Ltd [member] | |||
Disclosure of transactions between related parties [line items] | |||
Receivables | 758 | 320 | |
Adalvo Limited [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 1,218 | ||
Sold service | 106 | ||
Payables / loans | 349 | ||
Alvogen Malta Sh. Services [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 603 | 1,216 | 101 |
Sold service | 151 | ||
Receivables | 7 | ||
Payables / loans | 283 | ||
Alvogen Spain SL [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 117 | 294 | 132 |
Payables / loans | 23 | ||
Norwich Clinical Services Ltd [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 301 | 41 | 92 |
Payables / loans | 31 | 17 | |
Alvogen Pharma Pvt Ltd [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 1,159 | 491 | 218 |
Payables / loans | 13 | ||
Flóki Fasteignir ehf. (HRJÁF ehf.) [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 1,516 | ||
Payables / loans | 8,876 | ||
L41 ehf [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 26 | 29 | |
Lambahagavegur 7 ehf [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | $ 537 | 713 | |
Payables / loans | 12,661 | ||
Aztiq Pharma Partners S.à r.l. [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 16,048 | 19,471 | |
Alvogen Aztiq AB [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 297 | ||
Payables / loans | 43 | ||
Aztiq Investment Advisory AB [member] | |||
Disclosure of transactions between related parties [line items] | |||
Receivables | 2 | ||
Alvogen UK [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 299 | 1,153 | |
Receivables | 17 | ||
Alvogen Malta (Outlicensing) Ltd [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 1,045 | 142 | |
Sold service | 279 | 185 | |
Receivables | 65 | ||
Payables / loans | 229 | ||
HRJAF ehf [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 1,415 | 1,083 | |
Payables / loans | $ 9,794 | ||
Alvogen PB R&D LLC [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sold service | 7 | ||
Alvogen Malta Operations Ltd [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 239 | ||
Alvogen Malta Group Services [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchased service / interest | 478 | ||
Alvogen Malta LTD [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sold service | $ 4 |
Related Parties - Schedule of I
Related Parties - Schedule of Information About Board of Directors Remuneration (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Information About Board of Directors Remuneration [Line Items] | ||
Board fees | $ 927 | |
Pension contribution | ||
Shares at year-end | 1,133,131 | 893,060 |
Key employees [Abstract] | ||
Salaries and benefits | $ 6,292 | $ 5,408 |
Pension contribution | 608 | 492 |
Termination benefits | 1,977 | |
Other long- term benefits | 5,015 | 985 |
Robert Wessman [Member] | ||
Schedule of Information About Board of Directors Remuneration [Line Items] | ||
Board fees | 740 | |
Pension contribution | ||
Shares at year-end | 0 | 0 |
Richard Davies [Member] | ||
Schedule of Information About Board of Directors Remuneration [Line Items] | ||
Board fees | $ 68 | |
Pension contribution | ||
Shares at year-end | 1,133,131 | 893,060 |
Ann Merchant [Member] | ||
Schedule of Information About Board of Directors Remuneration [Line Items] | ||
Board fees | $ 43 | |
Pension contribution | ||
Arni Hararson [Member] | ||
Schedule of Information About Board of Directors Remuneration [Line Items] | ||
Board fees | ||
Pension contribution | ||
Shares at year-end | ||
Faysal Kalmoua [Member] | ||
Schedule of Information About Board of Directors Remuneration [Line Items] | ||
Board fees | ||
Pension contribution | ||
Shares at year-end | ||
Linda McGoldrick [Member] | ||
Schedule of Information About Board of Directors Remuneration [Line Items] | ||
Board fees | $ 38 | |
Pension contribution | ||
Shares at year-end | ||
Lisa Graver [Member] | ||
Schedule of Information About Board of Directors Remuneration [Line Items] | ||
Board fees | $ 38 | |
Pension contribution | ||
Shares at year-end | ||
Tomas Ekman [Member] | ||
Schedule of Information About Board of Directors Remuneration [Line Items] | ||
Board fees | ||
Pension contribution | ||
Shares at year-end | ||
Hirofumi Imai [Member] | ||
Schedule of Information About Board of Directors Remuneration [Line Items] | ||
Board fees | ||
Pension contribution | ||
Shares at year-end | ||
Tanya Zharov [Member] | ||
Schedule of Information About Board of Directors Remuneration [Line Items] | ||
Board fees | ||
Pension contribution | ||
Mark Levick CEO [Member] | ||
Key employees [Abstract] | ||
Salaries and benefits | $ 892 | 877 |
Pension contribution | 162 | 159 |
Termination benefits | 1,157 | |
Other long- term benefits | 0 | |
Other Executive Team Members [Member] | ||
Key employees [Abstract] | ||
Salaries and benefits | 5,400 | 4,531 |
Pension contribution | 446 | 333 |
Termination benefits | 820 | |
Other long- term benefits | $ 5,015 | $ 985 |
Related Parties - Additional in
Related Parties - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of transactions between related parties [line items] | ||
Operating lease remaining lease term | 8 years | 17 years |
Loans to related parties | $ 0 | $ 0 |
Fasteignaflagi Smundur hf [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Operating lease remaining lease term | 17 years |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Composition of Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Detailed Information About Other Current Liabilities [Line Items] | ||
Unpaid salary and salary related expenses | $ 15,620 | $ 10,235 |
Accrued interest | 2,249 | 7,547 |
Accrued payable to Biosana | 7,500 | |
Accrued vacation leave | 5,025 | 4,626 |
Employee incentive plan | 12,433 | |
Accrued expenses | 18,720 | 12,104 |
Total | $ 54,047 | $ 42,012 |
Interests In Joint Ventures - S
Interests In Joint Ventures - Schedule of Information About Joint Venture (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of joint ventures [line items] | |||
Carrying Amount | $ 48,568 | $ 55,307 | $ 56,679 |
Alvotech & CCHN Biopharmaceutical Co., Ltd. [Member] | |||
Disclosure of joint ventures [line items] | |||
Place of business | China | China | |
Ownership interest | 50% | 50% | |
Carrying Amount | $ 48,568 | $ 55,307 |
Interests In Joint Ventures -_2
Interests In Joint Ventures - Schedule of Changes in Groups Investment in a Joint Venture (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Detailed Information About Changes In Investment In Joint Venture [Line Items] | |||
Balance at 1 January | $ 55,307 | $ 56,679 | |
Share in losses | (2,590) | (2,418) | $ (1,505) |
Translation difference | (4,149) | 1,046 | |
Balance at 31 December | $ 48,568 | $ 55,307 | $ 56,679 |
Interests In Joint Ventures -_3
Interests In Joint Ventures - Schedule of Summary of Statement of Financial Position of Joint Venture (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets [abstract] | |||
Current inventories | $ 71,470 | $ 39,058 | |
Other current assets | 32,949 | 14,736 | |
Total current assets | 230,736 | 119,816 | |
Total non-current assets | 597,707 | 478,161 | |
Current liabilities [abstract] | |||
Other current liabilities | 54,047 | 42,012 | |
Total current liabilities | 167,294 | 111,836 | |
Total non-current liabilities | 1,225,565 | 621,753 | |
Joint ventures [member] | |||
Current assets [abstract] | |||
Cash and bank balances | 17,203 | 29,659 | |
Trade receivables | 15 | ||
Current inventories | 250 | 18 | |
Other current assets | 1,539 | 1,372 | |
Total current assets | 18,992 | 31,064 | |
Total non-current assets | 107,487 | 94,525 | |
Current liabilities [abstract] | |||
Financial liabilities | 145 | ||
Other current liabilities | 14,129 | 12,156 | |
Total current liabilities | 14,274 | 12,156 | |
Total non-current liabilities | 15,069 | 2,820 | |
Net assets | $ 97,136 | $ 110,613 | $ 113,061 |
Interests In Joint Ventures -_4
Interests In Joint Ventures - Schedule of Reconciliation to Carrying Amounts in Joint Venture (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation Of Carrying Amount In Joint Venture Financial Statements [Line Items] | |||
Loss for the year | $ (513,580,000) | $ (101,504,000) | $ (170,044,000) |
Dividends paid | 0 | 0 | 0 |
Carrying Amount | 48,568,000 | 55,307,000 | 56,679,000 |
Joint ventures [member] | |||
Reconciliation Of Carrying Amount In Joint Venture Financial Statements [Line Items] | |||
Opening net assets at 1 January | 110,613,000 | 113,061,000 | |
Loss for the year | (5,180,000) | (4,836,000) | (3,010,000) |
Other comprehensive income | |||
Cash contributions of owners | |||
Receivable from owners | |||
Dividends paid | |||
Other, net | (8,297,000) | 2,388,000 | |
Closing net assets at 31 December | $ 97,136,000 | $ 110,613,000 | $ 113,061,000 |
Group's share in % | 50% | 50% | |
Carrying Amount | $ 48,568,000 | $ 55,307,000 |
Interests In Joint Ventures -_5
Interests In Joint Ventures - Schedule of Summary of Statement of Profit Loss and Other Comprehensive Income of Joint Venture (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Detailed Information Of Statement Of Profit Loss And Other Comprehensive Income Of Joint Venture [Line Items] | |||
Income tax expense | $ (38,067) | $ (47,694) | $ (121,726) |
Loss for the year | (513,580) | (101,504) | (170,044) |
Dividends received from joint venture entity | 0 | 0 | 0 |
Joint ventures [member] | |||
Disclosure Of Detailed Information Of Statement Of Profit Loss And Other Comprehensive Income Of Joint Venture [Line Items] | |||
Revenue | 0 | 0 | 0 |
Interest income | 433 | 1,295 | 2,518 |
Depreciation and Amortization | 829 | 210 | 26 |
Interest expense | 151 | ||
Income tax expense | |||
Other expenses | 4,633 | 5,920 | 4,844 |
Exchange rate differences | 1 | 658 | |
Loss for the year | (5,180) | (4,836) | (3,010) |
Other comprehensive income | |||
Total comprehensive loss | (5,180) | (4,836) | (3,010) |
Dividends received from joint venture entity |
Interests In Joint Ventures - A
Interests In Joint Ventures - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of joint ventures [abstract] | ||||
Dividends received from joint ventures | $ 0 | $ 0 | $ 0 | |
Commitments in relation to joint ventures | 0 | 0 | $ 5,000 | |
Commitments of joint venture partners in relation to joint ventures | $ 50,000 | |||
Contingent liabilities incurred in relation to interests in joint ventures | $ 0 | $ 0 |
Financial Instruments - Summary
Financial Instruments - Summary of Financial Assets Measured at Cost (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [abstract] | ||||
Cash and cash equivalents | $ 66,427 | $ 17,556 | $ 31,689 | $ 67,403 |
Restricted cash | 25,187 | 10,087 | $ 10,087 | |
Trade receivables | 32,972 | 29,396 | ||
Other Current Asset | 5,880 | 14,518 | ||
Receivables from related parties | 1,548 | 1,111 | ||
Other long-term assets | 4,484 | |||
Financial assets | $ 136,498 | $ 72,668 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Financial Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about financial instruments [abstract] | |||
Borrowings (measured at amortized cost) | $ 764,570 | $ 400,911 | $ 567,899 |
Derivative financial liabilities (measured at FVTPL) | 380,232 | ||
Other long-term liability to related party (measured at amortized cost) | 7,440 | 7,440 | |
Long-term incentive plan (measured at FVTPL) | 544 | 56,334 | |
Trade and other payables (measured at amortized cost) | 49,188 | 28,587 | |
Lease liabilities (measured at amortized cost) | 40,532 | 122,140 | $ 108,947 |
Liabilities to related parties (measured at amortized cost) | 1,131 | 638 | |
Other current liabilities | 53,664 | 42,012 | |
Financial liabilities | $ 1,297,301 | $ 658,062 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Material Differences Between the Fair Value and Carrying Amount (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Senior Bonds [member] | ||
Disclosure in tabular form of carrying amount and financial amount of certain borrowings [line items] | ||
Carrying Amount | $ 530,506 | |
Fair Value | $ 535,167 | |
Bonds [member] | ||
Disclosure in tabular form of carrying amount and financial amount of certain borrowings [line items] | ||
Carrying Amount | $ 363,100 | |
Fair Value | $ 368,476 |
Financial Instruments - Summa_4
Financial Instruments - Summary of Fair Value on a Recurring Basis (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | $ 381,083 |
Level 1 [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 10,152 |
Level 2 [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 286,700 |
Level 3 [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 84,231 |
Senior Bond Warrants [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 45,325 |
Senior Bond Warrants [member] | Level 3 [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 45,325 |
Tranche A Conversion Feature [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 38,055 |
Tranche A Conversion Feature [member] | Level 3 [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 38,055 |
Senior Bond Interest Rate Feature [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 851 |
Senior Bond Interest Rate Feature [member] | Level 3 [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 851 |
Predecessor Earn Out Shares [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 276,200 |
Predecessor Earn Out Shares [member] | Level 2 [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 276,200 |
OACB Earn Out Shares [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 10,500 |
OACB Earn Out Shares [member] | Level 2 [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 10,500 |
OACB Warrants [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | 10,152 |
OACB Warrants [member] | Level 1 [member] | |
Disclosure In Tabular Form Of Fair Value Of Derivative Financial Instruments [Line Items] | |
Derivative financial liabilities | $ 10,152 |
Financial Instruments - Summa_5
Financial Instruments - Summary of Assumptions and Inputs (Details) | Dec. 31, 2022 | Dec. 20, 2022 | Jun. 15, 2022 |
Stock price [member] | Embedded Derivative Liabilities Associated With Convertible Bonds [Member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 10 | 8 | |
Stock price [member] | Predecessor Earnout Shares [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 10 | 9.38 | |
Stock price [member] | OACB earnout shares [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 10 | 9.38 | |
Conversion price [member] | Embedded Derivative Liabilities Associated With Convertible Bonds [Member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 10 | 10 | |
Volatility rate [member] | Embedded Derivative Liabilities Associated With Convertible Bonds [Member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 45 | 45 | |
Volatility rate [member] | Predecessor Earnout Shares [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 45 | 37.5 | |
Volatility rate [member] | OACB earnout shares [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 45 | 37.5 | |
Risk-free interest rate [member] | Embedded Derivative Liabilities Associated With Convertible Bonds [Member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 4.2 | 4 | |
Risk-free interest rate [member] | Predecessor Earnout Shares [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 4.1 | 3.4 | |
Risk-free interest rate [member] | OACB earnout shares [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 4.1 | 3.4 | |
Dividend yield [member] | Embedded Derivative Liabilities Associated With Convertible Bonds [Member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 0 | 0 | |
Risky yield [member] | Embedded Derivative Liabilities Associated With Convertible Bonds [Member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Significant unobservable input, liabilities | 19.3 | 18.6 |
Financial Instruments - Summa_6
Financial Instruments - Summary of Interest Rate Sensitivity Analysis (Details) - Interest rate risk [member] - Variable interest rate financial liabilities [member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure in tabular form of interest rate sensitivity analysis impact on profit before tax [line items] | ||
Variable-rate financial liabilities +100 | $ (186) | $ (65) |
Variable-rate financial liabilities -100 | $ 186 | $ 65 |
Financial Instruments - Summa_7
Financial Instruments - Summary of Interest Rate Sensitivity Analysis (Details) (Parenthetical) - Interest rate risk [member] - Variable interest rate financial liabilities [member] | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure in tabular form of interest rate sensitivity analysis impact on profit before tax [line items] | ||
Variable-rate financial liabilities +100 | 100% | 100% |
Variable-rate financial liabilities -100 | 100% | 100% |
Financial Instruments - Summa_8
Financial Instruments - Summary of Impact on the Groups Operations (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
EUR | ||
Disclosure in tabular form of foreign exchange rate [line items] | ||
Closing rate | 1.061 | 1.133 |
Average rate | 1.052 | 1.183 |
Change | 6.40% | |
GBP | ||
Disclosure in tabular form of foreign exchange rate [line items] | ||
Closing rate | 1.204 | 1.35 |
Average rate | 1.233 | 1.376 |
Change | 10.80% | |
ISK | ||
Disclosure in tabular form of foreign exchange rate [line items] | ||
Closing rate | 0.007 | 0.008 |
Average rate | 0.007 | 0.008 |
Change | 8.30% | |
CHF | ||
Disclosure in tabular form of foreign exchange rate [line items] | ||
Closing rate | 1.071 | 1.094 |
Average rate | 1.047 | 1.094 |
Change | 2.10% | |
INR | ||
Disclosure in tabular form of foreign exchange rate [line items] | ||
Closing rate | 0.012 | 0.013 |
Average rate | 0.013 | 0.014 |
Change | 10.10% |
Financial Instruments - Summa_9
Financial Instruments - Summary of Groups Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure in tabular form of assets and liabilities denominated in foreign currencies [line items] | ||
Assets | $ 828,443 | $ 597,977 |
Liabilities | 1,392,859 | 733,589 |
EUR | ||
Disclosure in tabular form of assets and liabilities denominated in foreign currencies [line items] | ||
Assets | 36,420 | 31,718 |
Liabilities | 26,514 | 15,720 |
Net assets | 9,906 | 15,998 |
GBP | ||
Disclosure in tabular form of assets and liabilities denominated in foreign currencies [line items] | ||
Assets | 111 | 180 |
Liabilities | 1,538 | 673 |
Net assets | (1,427) | (493) |
ISK | ||
Disclosure in tabular form of assets and liabilities denominated in foreign currencies [line items] | ||
Assets | 49,484 | 5,421 |
Liabilities | 109,507 | 148,747 |
Net assets | (60,023) | (143,326) |
CHF | ||
Disclosure in tabular form of assets and liabilities denominated in foreign currencies [line items] | ||
Assets | 69 | 715 |
Liabilities | 7,305 | 7,305 |
Net assets | (7,236) | $ (6,590) |
INR | ||
Disclosure in tabular form of assets and liabilities denominated in foreign currencies [line items] | ||
Assets | 11 | |
Liabilities | 517 | |
Net assets | $ (506) |
Financial Instruments - Summ_10
Financial Instruments - Summary of Analysis Assumes that all Other Variables (Details) - Currency risk [member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
EUR | ||
Disclosure In Tabular Form Of Currency Risk Sensitivity Analysis On Profit Before Tax [Line Items] | ||
-10% weakening | $ (991) | $ (1,600) |
+10% strengthening | 991 | 1,600 |
GBP | ||
Disclosure In Tabular Form Of Currency Risk Sensitivity Analysis On Profit Before Tax [Line Items] | ||
-10% weakening | (143) | (49) |
+10% strengthening | 143 | 49 |
ISK | ||
Disclosure In Tabular Form Of Currency Risk Sensitivity Analysis On Profit Before Tax [Line Items] | ||
-10% weakening | (6,002) | (14,333) |
+10% strengthening | 6,002 | 14,333 |
CHF | ||
Disclosure In Tabular Form Of Currency Risk Sensitivity Analysis On Profit Before Tax [Line Items] | ||
-10% weakening | (724) | (659) |
+10% strengthening | 724 | $ 659 |
INR | ||
Disclosure In Tabular Form Of Currency Risk Sensitivity Analysis On Profit Before Tax [Line Items] | ||
-10% weakening | (51) | |
+10% strengthening | $ 51 |
Financial Instruments - Summ_11
Financial Instruments - Summary of Analysis Assumes that all Other Variables (Details) (Parenthetical) - Currency risk [member] | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure In Tabular Form Of Currency Risk Sensitivity Analysis On Profit Before Tax [Line Items] | ||
Percentage of reasonably possible increase in unobservable input liabilities | 10% | 10% |
Percentage of reasonably possible decrease in unobservable input liabilities | 10% | 10% |
Financial Instruments - Summ_12
Financial Instruments - Summary of the Maximum Credit Risk Exposure of the Groups Financial Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Credit Risk [Line Items] | ||
Maximum exposure to credit risk | $ 136,498 | $ 93,987 |
Cash and cash equivalents [member] | ||
Disclosure Of Credit Risk [Line Items] | ||
Maximum exposure to credit risk | 66,427 | 17,556 |
Restricted cash [member] | ||
Disclosure Of Credit Risk [Line Items] | ||
Maximum exposure to credit risk | 25,187 | 10,087 |
Other assets [member] | ||
Disclosure Of Credit Risk [Line Items] | ||
Maximum exposure to credit risk | $ 44,884 | $ 66,344 |
Financial Instruments - Summ_13
Financial Instruments - Summary of Contractual Maturities of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Contractual Maturities Of Financial Assets And Financial Liabilities [Line Items] | ||
Non-interest bearing | $ 40,400 | $ 29,396 |
Variable-interest bearing | 96,098 | 27,643 |
Total financial assets | 136,498 | 57,039 |
Non-interest bearing | 112,350 | 135,011 |
Fixed-interest bearing - Borrowings | 1,008,986 | 550,573 |
Derivative | 380,232 | |
Variable-interest bearing - Borrowings | 92,404 | 7,193 |
Total financial liabilities | 1,593,972 | 692,777 |
Within one year [member] | ||
Disclosure Of Contractual Maturities Of Financial Assets And Financial Liabilities [Line Items] | ||
Non-interest bearing | 40,400 | 29,396 |
Variable-interest bearing | 66,427 | 17,556 |
Total financial assets | 106,827 | 46,952 |
Non-interest bearing | 104,366 | 71,237 |
Fixed-interest bearing - Borrowings | 45,757 | 16,663 |
Variable-interest bearing - Borrowings | 25,259 | 3,041 |
Total financial liabilities | 175,382 | 90,941 |
One to two years [member] | ||
Disclosure Of Contractual Maturities Of Financial Assets And Financial Liabilities [Line Items] | ||
Non-interest bearing | 0 | |
Fixed-interest bearing - Borrowings | 66,308 | 33,235 |
Variable-interest bearing - Borrowings | 8,036 | 3,035 |
Total financial liabilities | 74,344 | 36,270 |
Thereafter [member] | ||
Disclosure Of Contractual Maturities Of Financial Assets And Financial Liabilities [Line Items] | ||
Variable-interest bearing | 29,671 | 10,087 |
Total financial assets | 29,671 | 10,087 |
Non-interest bearing | 7,984 | 63,774 |
Fixed-interest bearing - Borrowings | 896,921 | 500,675 |
Derivative | 380,232 | |
Variable-interest bearing - Borrowings | 59,109 | 1,117 |
Total financial liabilities | $ 1,344,246 | $ 565,566 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 20, 2022 | Nov. 16, 2022 | Jun. 15, 2022 | Dec. 07, 2021 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | |||||||||
Liabilites at fair value | $ 1,392,859 | $ 1,392,859 | $ 733,589 | ||||||
Senior Bond Warrants [member] | Tranche one [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Warrants as a percentage of fully diluted share capital | 1.50% | 1.50% | |||||||
Minimum proceeds from the issuance of common stock | $ 75,000 | ||||||||
Senior Bond Warrants [member] | Tranche two [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Warrants as a percentage of fully diluted share capital | 1% | 1% | |||||||
Minimum proceeds from the issuance of common stock | $ 150,000 | ||||||||
Level 3 of fair value hierarchy [member] | Embedded derivative liabilities associated with convertible bonds [member] | Tranche A Conversion Feature [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Liabilites at fair value | $ 38,100 | 38,100 | $ 24,900 | ||||||
Level 3 of fair value hierarchy [member] | Embedded derivative liabilities associated with convertible bonds [member] | Tranche A Conversion Feature [member] | Finance costs [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Gains losses recognized in profit or loss fair value measurement liabilites | 13,200 | ||||||||
Level 3 of fair value hierarchy [member] | Senior Bond Warrants [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Liabilites at fair value | $ 45,300 | 45,300 | $ 15,400 | ||||||
Level 3 of fair value hierarchy [member] | Senior Bond Warrants [member] | Finance costs [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Gains losses recognized in profit or loss fair value measurement liabilites | $ 29,900 | ||||||||
Level 3 of fair value hierarchy [member] | Senior Bond Warrants [member] | Tranche one [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Class of warrants or rights issued during the period shares | 4,198,807 | ||||||||
Class of warrants or rights issued during the period excerise price per share | $ 0.01 | $ 0.01 | |||||||
Level 3 of fair value hierarchy [member] | Predecessor Earn Out Shares [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Liabilites at fair value | $ 276,200 | $ 276,200 | $ 227,500 | ||||||
Increase decrease in shares issued | 38,330,000 | ||||||||
Level 3 of fair value hierarchy [member] | Predecessor Earn Out Shares [member] | Finance costs [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Gains losses recognized in profit or loss fair value measurement liabilites | $ 48,700 | ||||||||
Level 3 of fair value hierarchy [member] | Predecessor Earn Out Shares [member] | Tranche one [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Vesting percentage of shares | 50% | ||||||||
Aggregate period for determining the share price | 5 years | ||||||||
Share price | $ 15 | ||||||||
Threshold days for determining the share price | 10 days | ||||||||
Number of consecutive trading days for determining the share | 20 days | ||||||||
Level 3 of fair value hierarchy [member] | Predecessor Earn Out Shares [member] | Tranche two [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Vesting percentage of shares | 50% | ||||||||
Share price | $ 20 | ||||||||
Threshold days for determining the share price | 10 days | ||||||||
Number of consecutive trading days for determining the share | 20 days | ||||||||
Level 3 of fair value hierarchy [member] | OACB earnout shares [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Liabilites at fair value | 10,500 | $ 10,500 | 9,100 | ||||||
Increase decrease in shares issued | 1,250,000 | ||||||||
Aggregate period for determining the share price | 5 years | ||||||||
Level 3 of fair value hierarchy [member] | OACB earnout shares [member] | Finance costs [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Gains losses recognized in profit or loss fair value measurement liabilites | $ 1,400 | ||||||||
Level 3 of fair value hierarchy [member] | OACB earnout shares [member] | Tranche one [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Vesting percentage of shares | 50% | ||||||||
Share price | $ 12.5 | ||||||||
Level 3 of fair value hierarchy [member] | OACB earnout shares [member] | Tranche two [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Vesting percentage of shares | 50% | ||||||||
Share price | $ 15 | ||||||||
Threshold days for determining the share price | 10 days | ||||||||
Number of consecutive trading days for determining the share | 20 days | ||||||||
Level 3 of fair value hierarchy [member] | OACB Warrants [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Liabilites at fair value | $ 10,200 | $ 10,200 | $ 11,800 | ||||||
Class of warrants or rights outstanding | 10,916,647 | 10,916,647 | |||||||
Class of warrants or rights exercise price per share | $ 11.5 | $ 11.5 | |||||||
Level 3 of fair value hierarchy [member] | OACB Warrants [member] | Finance costs [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Gains losses recognized in profit or loss fair value measurement liabilites | $ 1,600 | ||||||||
Level 3 of fair value hierarchy [member] | Convertible shareholder loans [member] | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Liabilites at fair value | 534,700 | $ 534,700 | $ 485,900 | $ 479,300 | |||||
Share price | $ 9.86 | ||||||||
Increase decrease in fair value measurement liabilities | $ 48,800 | 55,400 | |||||||
Cumulative funding loss aggregate | $ 15,000 | ||||||||
Period of amortization of deferred loss | 5 years | ||||||||
Unamortized deferred loss | $ 3,100 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non Cash Investing And Financing Activities [Abstract] | |||
Acquisition of property, plant and equipment in trade payables | $ 4,131 | $ 3,812 | |
Acquisition of intangibles in trade payables and other current liabilities | 4,075 | ||
Right-of-use assets obtained through new operating leases | 9,583 | 18,871 | $ 15,204 |
Addition of the Facility through Aztiq Convertible Bond | 115,005 | ||
Non-cash issuance of Aztiq Convertible Bond | 80,000 | ||
Equity issued through conversion of borrowings | $ 32,200 | 346,043 | $ 30,000 |
Acquisition of other intangible assets through financing agreements | $ 461 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | 1 Months Ended | ||||
Feb. 17, 2023 shares | Feb. 10, 2023 USD ($) $ / shares | Jan. 25, 2023 USD ($) $ / shares shares | Jan. 31, 2023 USD ($) shares | Jan. 01, 2023 shares $ / shares | |
Ordinary Shares [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Increase decrease in shares issued | shares | 625,000 | ||||
Loans Borrowed By Way Of Bonds Issued [Member] | Tranche B [Member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Debt instrument face value | $ | $ 10,000,000 | ||||
Debt instrument conversion price per share | $ / shares | $ 10 | ||||
Loans Borrowed By Way Of Bonds Issued [Member] | Tranche B [Member] | Bottom of range [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Date on which the debt instrument is eligible to be converted into equity | Dec. 31, 2023 | ||||
Loans Borrowed By Way Of Bonds Issued [Member] | Tranche B [Member] | Top of range [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Date on which the debt instrument is eligible to be converted into equity | Jun. 30, 2024 | ||||
Major ordinary share transactions [member] | Private Placement [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Warrants as a percentage of fully diluted ordinary share capital | 1% | ||||
Major ordinary share transactions [member] | Private Placement [member] | Ordinary Shares [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Proceeds from the issuance of common stock | $ | $ 137,000,000 | ||||
Common stock par or stated value per share | $ / shares | $ 0.01 | ||||
Sale of stock issue price per share | $ / shares | $ 11.57 | ||||
Excercise Of Warrants [Member] | Ordinary Shares [member] | OACB Warrants [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Increase decrease in shares issued | shares | 271,150 | ||||
Class of warrants or rights exercise price per share | $ / shares | $ 11.5 | ||||
Proceeds from the excerise of warrants | $ | $ 3,100,000 | ||||
Number of shares called by each warrant or right | shares | 1 | ||||
Warrants Issued To Senior Bond Holders On Debt Conversion [Member] | Ordinary Shares [member] | |||||
Disclosure of non-adjusting events after reporting period [line items] | |||||
Increase decrease in shares issued | shares | 3,014,189 |