Wockhardt on Friday said that it will exit from the US generic drug market, marking a significant shift in its business direction. The move comes after years of sustained losses in the segment, with the generics business posting a loss of approximately $8 million in FY25. In a regulatory filing, the company said that it has initiated voluntary liquidation proceedings for its two US subsidiaries – Morton Grove Pharmaceuticals Inc and Wockhardt USA LLC – under Chapter 7 of the US Bankruptcy Code. Both entities are wholly owned by Wockhardt Bio AG and are incorporated in Delaware.
The decision, effective July 11, 2025, is part of Wockhardt’s broader plan to streamline operations and concentrate on its high-value, innovation-driven product lines. By exiting the US generics space, the company aims to redirect capital and executive focus toward two key growth areas: novel antibiotics and its biologicals portfolio, particularly in insulin-based therapies.
Wockhardt’s founder chairman Habil Khorakiwala had last month indicated about this strategic pivot in an interaction with Fe, saying that the company would move away from commoditised generics in the US and concentrate on launching innovative drugs developed in Europe at FDA-approved facilities. This approach aligns with Wockhardt’s long-term goal of transforming into a research-led pharmaceutical firm with a global footprint.
A major component of this transformation is Zaynich, Wockhardt’s new antibiotic designed to treat multi-drug resistant Gram-negative infections. The company plans to file a New Drug Application (NDA) for Zaynich with the US FDA in August 2025, with hopes for approval by next year. In India, a similar application was submitted to the Drug Controller General of India (DCGI) in March 2025, targeting a 2026 market launch.
Wockhardt’s statement emphasised that the exit from the US generics sector will enhance its ability to deliver sustainable profitability through innovation and scientific leadership. The company reiterated its commitment to pharmaceutical operations in India, the UK, Ireland, and other international markets, where its businesses continue to perform strongly.