Alvotech Holdings SA, a company developing and manufacturing so-called biosimilar drugs, is going public in the U.S. through a merger with a blank-check firm backed by Oaktree Capital Management.

Iceland-based Alvotech will merge with Oaktree Acquisition Corp. II in a deal that values the combined company at about $2.25 billion including debt, according to a statement, confirming a Bloomberg News report.

Alvotech will receive gross proceeds of more than $450 million. The deal includes a $150 million equity placement led by investors such as Suvretta Capital, CVC Capital Partners and Singapore’s Temasek Holdings Pte. Proceeds from the special purpose acquisition company also include $250 million in cash from Oaktree Acquisition’s trust account and a $50 million equity commitment from existing shareholders. That assumes no redemptions.

Current Alvotech equity holders will own about 80% of the combined entity, which will is expected to trade on the Nasdaq under the symbol ALVO.

Alvotech, founded by Chairman Robert Wessman, announced in November 2020 that the U.S. Food and Drug Administration and the European Medicines Agency had accepted its application for an immune-suppressing drug similar to Humira, with a decision expected this year. The FDA later deferred action on the application, according to a statement in September.

The company won dismissal in October of a trade-secrets lawsuit filed by Humira maker AbbVie Inc. in federal court in Chicago. Alvotech still faces a patent-infringement lawsuit brought by AbbVie. Wessman said the company is expecting a ruling in October 2022.

“We always intended for Alvotech to be listed on one of the major stock exchanges,” Wessman said in an interview. “The U.S. market covers over 50% of the pharmaceutical sales and it’s a natural home at the end of the day.”

“Biologics are very effective medication but it’s extremely expensive,” he said. “We believe that there’s a great need to find a low-cost alternative.”

Alvotech considered an initial public offering in Hong Kong, Bloomberg reported in 2018. It raised $300 million in a private convertible note offering at the time and committed to going public within three years.

Oaktree Acquisition raised $225 million in an initial public offering last year. The special purpose acquisition company, or SPAC, is sponsored by an affiliate of Oaktree Capital, the Los Angeles-based investment firm.

Morgan Stanley and Credit Suisse Group AG advised Alvotech while Deutsche Bank AG advised Oaktree Acquisition on the deal, which is slated to close in the first half of 2022.