The acquisition in brief

• Alvotech acquires Xbrane's R&D operations and the biosimilar candidate XB003. Xbrane retains some pre-clinical development programs, that it intends to commercialize, and will continue operating as a listed company.
• Employees in Xbrane's R&D operations will be offered to join Alvotech's R&D unit, and the site in Solna becomes Alvotech's Swedish base of operations.
• The Acquisition's purchase price equals a value of approximately SEK 275 million (approximately USD 27 million) and will be payable as SEK 102.2 million in cash at closing and by assumption of SEK 172.8 million in debt and accounts payable. The creditors have agreed to accept payment for SEK 152.8 million of the debt with Alvotech equity shares.
• Closing of the Acquisition is expected to occur in April 2025 and is contingent on approvals from the relevant authorities and Xbrane's shareholders.
• The Acquisition is unanimously supported by the Board of Directors of Xbrane. Shareholders in Xbrane including Ashkan Pouya via company holding, and a large international institution, as well as the Board of Directors and members of the leadership team have undertaken to vote in favor of the Acquisition.
• The Board of Directors of Xbrane will convene an Extraordinary General Meeting in April 2025 to obtain shareholders' approval for completion of the Acquisition.