Last Updated:
Wockhardt says its US generics business has been loss-making for several years, incurring a loss of nearly $8 million in FY25 alone.
Ahead of the announcement, shares of Wockhardt Ltd closed 3.5% higher at Rs 1,756 apiece on the BSE.
Wockhardt Ltd on Friday announced a strategic exit from the US generic pharmaceutical segment to shift its capital and focus on high-growth, innovation-driven areas.
“Wockhardt is undertaking significant strategic realignment of its US business in line with its long-term vision to build a differentiated, innovation-driven pharmaceutical enterprise,” the company said. “As part of this transition, the company has taken 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 July 11.
The move is part of Wockhardt’s broader plan to sharpen its focus on “building a future-ready business anchored in two key pillars”:
1. New Antibiotic Drug Discovery – where Wockhardt has established a leadership position globally, with a strong pipeline of differentiated assets.
2. Biologicals Portfolio in Insulin – leveraging advanced technologies to address critical unmet needs in diabetes care.
The company said its US generics business has been loss-making for several years, incurring a loss of nearly $8 million in FY25 alone.
To facilitate the exit, Wockhardt has filed for voluntary liquidation under Chapter 7 of the US Bankruptcy Code for its wholly owned step-down subsidiaries — Morton Grove Pharmaceuticals Inc. and Wockhardt USA LLC — both incorporated in Delaware. The decision is effective from July 11, 2025.
“This decision… enables a clean and structured exit from a legacy segment and unlocks management bandwidth and capital for high-impact areas,” Wockhardt said.
Despite the US exit, the company reaffirmed its commitment to pharmaceutical operations in India, the UK, Ireland, and other geographies where its businesses continue to perform strongly.
Ahead of the announcement, shares of Wockhardt Ltd closed 3.5% higher at Rs 1,756 apiece on the BSE.
Over the past several years, Wockhardt’s US generics business has been incurring losses. In FY 2025 alone, the generics business incurred a loss of nearly $8 million. Following a comprehensive strategic review, the company has concluded that continuing in this segment would detract from its broader innovation agenda.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
view comments
- First Published: