Wockhardt Ltd is exiting its loss-making US generics business to concentrate on novel antibiotic drug discovery and insulin portfolios, marking a strategic pivot toward innovation-driven pharmaceutical development. The Mumbai-based drugmaker filed for voluntary liquidation of its US subsidiaries Morton Grove Pharmaceuticals Inc. and Wockhardt USA LLC under Chapter 7 of the US Bankruptcy Code on Friday.
The decision comes after years of mounting losses in the US generics segment, with the business incurring nearly $8 million in losses during FY25 alone. Wockhardt chairman Habil Khorakiwala had previously indicated the company's intention to exit the US generics market to "derisk the organization fundamentally," citing the market's increasing uncertainty.
Strategic Shift Toward Innovation
"We have revisited what are the strengths and what are the opportunities—one obviously is our new drug discovery—in India and worldwide," Khorakiwala explained. The company no longer sees itself as a generics company, with plans to focus strictly on biologics and new chemical entities in the antibiotics space.
The exit from the commoditized generics segment is designed to unlock management bandwidth and capital for high-impact areas. "Continuing in this segment would detract from its broader innovation agenda," the company stated in its regulatory filing.
Novel Antibiotics Pipeline
Wockhardt has established a leadership position in antibiotic drug discovery with a pipeline of six novel antibiotics targeting bacterial drug resistance. Two candidates, Emrok and Miqnaf, have already launched in India, while the company's most promising asset, Zaynich, has completed global phase 3 trials with encouraging results.
Zaynich, a combination of zidebactam and cefepime, demonstrated effectiveness against superbugs or bacterial infections that show resistance to existing antibiotic treatments during clinical trials. The drug candidate has an addressable patient pool of two million and a market potential of $7 billion in the US and Europe.
Wockhardt has filed for approval with the Indian drug regulator and expects approval in the second half of FY26. The company plans to file with the US FDA in Q2 FY26, with a potential launch targeted for FY27.
Expanding Biologics Portfolio
Beyond antibiotics, Wockhardt is strengthening its biologics portfolio in insulin and GLP-1 treatments for diabetes. The company is doubling its insulin production capacity over the next three years to meet growing demand in India and emerging markets.
"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 noted. Wockhardt will continue operating its pharmaceutical businesses in India, the UK, Ireland, and other geographies where performance remains strong.
