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Wockhardt exits US generics biz, to focus on innovative portfolio
Wockhardt's stock price rose by 3.5% on Friday to ₹1,756 per share, following the announcement after market hours.
According to a regulatory filing, the company has filed for voluntary liquidation under Chapter 7 of the US Bankruptcy Code for its two Delaware-incorporated step-down subsidiaries—Morton Grove Pharmaceuticals and Wockhardt USA LLC.
This move comes even as the company's US generics business has been incurring losses over the past several years. Wockhardt stated that its generics business had incurred a loss of nearly $8 million in FY2024-25 (FY25) alone. While Wockhardt USA LLC contributed approximately 3% to the company's income in FY25, Morton Grove Pharmaceuticals recorded no income. Morton Grove's net worth stood at 4.6%, primarily from goodwill, while Wockhardt USA's net worth was negative.
However, Wockhardt's overall performance has been improving. For FY25, the company reported a net loss of ₹57 crore, compared to ₹472 crore in the previous fiscal. Revenue increased to ₹3,012 crore, up from ₹2,798 crore in FY2023-24. It has also managed to reduce its debt, with net debt standing at ₹1,830 crore in FY25, compared to ₹3,314 crore in FY20.
'Following a comprehensive strategic review, the company has concluded that continuing in this segment would detract from its broader innovation agenda,' the company said in an exchange filing.
By exiting the commoditised generics space, Wockhardt is positioning itself to create long-term value through innovation, scientific excellence, and sustainable profitability. The company said this reset would allow for a sharpened focus on building a future-ready business anchored in two key pillars: new antibiotic drug discovery and a biologicals portfolio, particularly in insulin.
'This decision, effective July 11, 2025, enables a clean and structured exit from a legacy segment and unlocks management bandwidth and capital for high-impact areas,' it added.
The company had also recently announced plans to launch its new class of antibiotic, Zaynich (WCK5222), targeting complicated gram-negative infections in India this year. The US launch is expected in FY27.
Wockhardt estimates that Zaynich will have an addressable market of $7 billion in the US and Europe, and a ₹17,000 crore opportunity in India, bringing the total opportunity to $9 billion. Apart from Zaynich, Wockhardt is also optimistic about other drugs in its antibiotic portfolio (such as Miqnaf or Nafithromycin) and its biotechnology portfolio, including insulins. Miqnaf has already been launched in India and is used to treat Community-Acquired Bacterial Pneumonia (CABP) and Upper Respiratory Tract Infections (RTI). The drug has been granted Qualified Infectious Disease Product (QIDP) status by the USFDA, indicating significant unmet need, as well as Breakthrough Medicinal Product (BMP) designation in Saudi Arabia.
Miqnaf is targeting a ₹10,800 crore market opportunity in India with over 96 million potential prescriptions.
While exiting the US generics market, the company reaffirmed its commitment to its pharmaceutical operations in India, the United Kingdom (UK), Ireland, and other geographies where its businesses continue to deliver strong performance.
In addition to antibiotics, the company is bullish on its biotech capabilities, particularly in diabetes management. Wockhardt sees a significant opportunity in India and emerging markets following Danish major Novo Nordisk's decision to phase out human insulin cartridges. In India, this presents an opportunity of around ₹450 crore, and in emerging markets, the opportunity is approximately $157 million. Wockhardt noted in its investor presentation that with only three players operating in this space in India, it sees significant benefit.
Wockhardt's shift towards an innovative portfolio, moving away from plain vanilla generics, comes at a time when Indian pharma firms are increasingly focusing on their innovative portfolios. On Thursday, Glenmark Pharma's American subsidiary signed an exclusive licensing agreement with US-based AbbVie for its oncology and autoimmune diseases asset, ISB-2001, for an upfront payment of $700 million.
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