When it comes to treating certain diseases or chronic conditions, often the body’s own defenses are the best medicine. Biologics, medications derived from specially engineered living cells, are especially effective at using a patient’s own immune system to treat diseases such as cancer with fewer side effects. However, due largely to cost, they often are not utilized until traditional approaches have been exhausted.

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Xbrane in agreement to sell biosimilar candidate and parts of its organization to Alvotech

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The founder of Reykjavík-based Alvotech, Róbert Wessman, views that as the wrong way to approach treatment, the more effective, less taxing alternative should come first. His company is dedicated to producing biosimilars, which are lower-cost medications almost identical to the original biologic.

“Biologics are very effective medications, but they are also very expensive,” explains Wessman, who also is the Chairman and the CEO of Alvotech. “Many patients who need them are not getting them. We’re trying to open up access.”

Biosimilars, like their originator predecessors, are particularly effective in treating cancer and chronic conditions such as psoriasis, arthritis, Crohn’s Disease, and other autoimmune diseases, describes Wessman. “Biosimilars are expensive to develop because they require complex technology and also have heightened testing requirements when compared to generic medications,” he says.

Entrepreneurial advice

Over the past 25 years, Wessman has built a global reputation as a leader in generic pharmaceuticals and biosimilars. He creates and grows companies with a singular purpose he says: “To make life-changing medicines more affordable and readily available to people and patients around the world”. 

In his early days, he jokingly notes that he felt the pull of both medicine and business in college. He had to choose one department and at the last minute, he flipped a coin and became a business major. Since graduating he has founded or run numerous companies and in 2009, he founded the pharmaceutical company Alvogen (where he serves as Chairman), a company that makes and markets generic and specialty medications. Alvotech, founded in 2013, is a fully integrated speciality biopharmaceutical company and a sister company to Alvogen. Wessman’s group of companies expect to earn more than USD 1 billion in cumulative EBITDA in 2024.

For those looking to start their own companies, Wessman preaches persistence. “If you have a passion for something, if you believe in it and have the courage, you just have to go for it,” he says. “You also need a vision that is both clear and focused. For us at Alvotech, it is access to biologic medicines.”

Just like the number of companies that he has founded, Wessman’s own interests have expanded as well. He is a long-time wine enthusiast, and together with his wife he has purchased Château de Saint-Cernin in France and revived its wine-making tradition. He also enjoys spending time outdoors with his six children, skiing in the winter and relaxing in the south of France in the summer. Besides the usual challenges of launching a business, in 2013 Wessman, who is also a former competitive cyclist, was severely injured in an accident and spent almost a year recovering. He managed to talk with his Alvotech team from his hospital bed, he says. 

Headquarters in Iceland

Wessman chose Reykjavík as the base to launch his biotech venture Alvotech,. Iceland is close to the large markets in the European Union and the US, and has an ample supply of natural resources such as renewable energy and clean water, which are necessary for the production of biosimilars, he says.

Róbert Wessman

In order to build a team that could take on such a technical challenge, the company recruited candidates from around the world. Today it has employees from 63 different countries alongside local talent that draws from the pharma experience in the country. This experience was historically established through Actavis, which Wessman took over in 2003 and grew to be the third largest global generics company.

Iceland should be well positioned in the life sciences going forward and that has also led us to collaborate closely with nearby universities.

Iceland has a good environment for life science companies and research, and Alvotech offers some entrepreneurs space and support. “We have some new companies starting up and we’re helping some of the entrepreneurs to help themselves,” says Wessman. “Iceland should be well positioned in the life sciences going forward and that has also led us to collaborate closely with nearby universities.”

Besides the headquarters in Iceland, Alvotech has offices in six other countries, including the US, and it continues to grow rapidly, according to Wessman. The company expects to release three new molecules by the end of this year. In 2024, Alvotech’s manufacturing facility in Reykjavik was certified by the U.S. Food and Drug Administration (FDA) and the company began selling its first product on the US market, called Simlandi, a biosimilar targeting the same autoimmune diseases as the drug Humira.

The future of biologics

In the coming years, Wessman anticipates biologics and biosimilars becoming more prominent in the pharmaceutical industry, as production improves and markets open up.

Right now, about 40 percent of the global pharmaceutical market (in terms of spending) is on biologics. In about 10 to 15 years, I believe this will be 60 percent, based on what is in clinical trials today.

“The future is biologics and the medications are moving in this direction,” he says. “Right now, about 40 percent of the global pharmaceutical market (in terms of spending) is on biologics. In about 10 to 15 years, I believe this will be 60 percent, based on what is in clinical trials today.” 

“To be able to control costs and serve patients, the world will need biosimilars. Access remains limited globally and we are fighting to open up the markets. We are looking to develop more efficient ways of producing them and have all the knowledge in-house. I would not rule out a partnership down the road that would include innovative biologics.”

Looking at Alvotech’s future, Wessman envisions growing and diversifying its offerings. “We’re definitely going to continue to strengthen our portfolio, I want to have the broadest product portfolio in the world. We are super thankful for our success.”