Latest news with #MortonGrovePharmaceuticals
Time of India
4 days ago
- Business
- Time of India
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 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.
&w=3840&q=100)
Business Standard
5 days ago
- Business
- Business Standard
Wockhardt exits US generics biz, to focus on innovative portfolio
Mumbai-based pharma major Wockhardt, which is gearing up for the launch of its promising antibiotic candidate Zaynich soon, announced on Friday a shift in its United States (US) operations, deciding to exit the generics pharmaceutical segment in the country. 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.
