Benzinga | Dec 9, 2021 09:37PM EST

Biosimilar Player Alvotech To Go Public Via $2.5B Oaktree SPAC Merger

* Biopharmaceutical company Alvotech Holdings SA plans to list on NASDAQ under the symbol ALVO by merging with a blank-check company backed by Oaktree Capital Management, in a deal that values the combined entity at around $2.25 billion.

* The Company will receive gross proceeds of $450 million from the deal, including $150 million from a private placement in public equity backed by Temasek, CVC Capital Partners, and funds managed by Suvretta Capital.

* Oaktree Acquisition Corp II (NYSE:OACB), a special purpose acquisition company (SPAC), raised $225 million through an initial public offering in September last year.

* The drugmaker has partnered with pharmaceutical companies in 60 countries.

* In September, Alvotech said the FDA had deferred action on its biologics license application for AVT02, its biosimilar for AbbVie Inc's (NYSE: ABBV) arthritis drug, Humira.

* AbbVie also filed a lawsuit against Alvotech alleging theft of trade secrets, which a U.S federal judge dismissed in October.

* The deal is expected to close in 1H of 2022.

* Morgan Stanley and Credit Suisse advised Alvotech on the deal while Deutsche Bank Securities advised the SPAC.

* Price Action: OACB shares are up 0.23% at $9.88 during the market session on the last check Wednesday.