Biotech company Alvotech S.A. (NASDAQ:ALVO) announced on Tuesday an agreement with German pharmaceutical company STADA Arzneimittel AG (FWB:SAZ) to form a broader biosimilar partnership.

Under the new agreement STADA gets marketing rights for Alvotech's AVT03, a clinical-stage biosimilar candidate referencing Prolia/Xgeva (denosumab), in Europe and parts of Central Asia and the Middle East. This builds on their existing alliance for biosimilars.

Alvotech will develop and manufacture AVT03, targeting osteoporosis and cancer-related bone loss. Upon approval, STADA will commercialise it in specified territories.

The agreement also expands STADA's commercial rights to existing Alvotech biosimilars in Central Asia, while Alvotech will regain commercial rights from STADA to AVT06, a proposed biosimilar to Eylea (aflibercept).