Wockhardt exits US generics biz to focus on drug discovery

Mumbai: Wockhardt will exit its loss-making generics business in the US as part of its strategy to enhance focus on innovation with new antibiotic drug discovery and biologics portfolio in insulin. ET was the first to report on July 1 the Mumbai-based drug maker's shift in strategy to become an innovation-driven company and its plans to exit the US generics segment.

At the time, chairman Habil Khorakiwala said Wockhardt does not see itself as a generics company. "In fact, in the US, we are exiting generics...we will be focused on the biological area and NCE ( new chemical entities) and strictly on antibiotics," he told ET.

"We have revisited what are the strengths and what are the opportunities-one obviously is our new drug discovery-in India and worldwide," said Khorakiwala. He also stressed on the company's focus on biologics portfolio in insulin and GLP1 as another key growth driver.

"As part of this transition, the company has taken the decision to exit the US generic pharmaceutical segment, paving the way for deeper focus and investment in its advanced product portfolio," the company said in a regulatory filing on Friday. Wockhardt's US generics business has been incurring losses for the past several years. In FY25, the generics business incurred a loss of nearly $8 million.


Wockhardt has filed for voluntary liquidation under Chapter 7 of the US Bankruptcy Code for its US step down subsidiaries, Morton Grove Pharmaceuticals and Wockhardt USA, incorporated in Delaware and wholly-owned subsidiaries of Wockhardt Bio. The decision, effective July 11, enables clean and structured exit from a legacy segment and unlocks management bandwidth and capital for high-impact areas, according to the company.

"Continuing in this segment would detract from its broader innovation agenda," it said. Going forward, Wockhardt will focus its efforts on new antibiotic drug discovery where it has established a leadership position globally, with a strong pipeline of differentiated assets while also bolstering its biologicals portfolio in insulin.

"By stepping away from the commoditised generics space, Wockhardt is positioning itself to create long-term value through innovation, scientific excellence, and sustainable profitability. The company remains committed to its pharmaceutical operations in India, the UK, Ireland, and other geographies where its businesses continue to deliver strong performance," the company noted.

ET had reported that Wockhardt is working on ambitious plans for its "miracle drug" Zaynich, a combination of zidebactam and cefepime that was found to be effective during clinical trials to fight superbugs or bacterial infections that show resistance to a range of existing antibiotic treatments.