Indian pharmaceutical giant Wockhardt Ltd. has announced its decision to exit the US generic pharmaceutical market and shut down two of its US subsidiaries.
Stepping Away from US Generics
Wockhardt has revealed it will no longer operate in the US generic pharmaceutical segment. This significant move follows a comprehensive strategic review of its business operations.
The company stated that its US generics business has been unprofitable for several years. In the fiscal year 2025 alone, this segment incurred a loss of nearly US $8 million, prompting the decision to withdraw.
Subsidiaries to Close Under Chapter 7
To facilitate this exit, Wockhardt has filed for voluntary liquidation under Chapter 7 of the US Bankruptcy Code for two of its wholly-owned US step-down subsidiaries. These are Morton Grove Pharmaceuticals Inc and Wockhardt USA LLC, both incorporated in Delaware.
This decision, which becomes effective on July 11, 2025, aims to provide a clear and organized departure from what the company calls a “legacy segment.” It also intends to free up management focus and capital for other high-priority areas.
A New Direction: Innovation and Specialization
Wockhardt’s exit from the commoditized generics space is part of a broader strategic realignment of its US business. The company’s long-term vision is to become a differentiated, innovation-driven pharmaceutical enterprise.
The company plans to sharpen its focus on two key pillars. Firstly, new antibiotic drug discovery, where Wockhardt has already established itself as a global leader with a strong pipeline of unique assets. Secondly, expanding its biologicals portfolio, particularly in insulin, by leveraging advanced technologies to address critical unmet needs in diabetes care.
Commitment to Other Markets
By shifting away from generics, Wockhardt believes it can create long-term value through innovation, scientific excellence, and sustainable profitability. This strategic evolution is designed to make the company more focused, resilient, and innovation-led.
Wockhardt has reassured stakeholders that it remains fully committed to its pharmaceutical operations in India, the UK, Ireland, and other international geographies where its businesses continue to perform strongly.
- Wockhardt is exiting the US generic pharmaceutical market.
- Two US subsidiaries, Morton Grove Pharmaceuticals Inc and Wockhardt USA LLC, will undergo Chapter 7 liquidation.
- The decision stems from recurring losses in the US generics business.
- Wockhardt will now focus on new antibiotic drug discovery and biologicals, particularly insulin.
- Operations in India, UK, Ireland, and other regions remain unaffected.
This strategic move is expected to position Wockhardt for greater value delivery to patients, partners, and shareholders in the coming years.
