Drugmaker Wockhardt has decided to exit its remaining generics business in the US, for commercial reasons.
Over two years ago, the Mumbai-based drugmaker had announced that it was closing its manufacturing facility in Illinois and would continue its business in the United States through contract manufacturing alliances there for its products sold in North America.
“We have decided to exit the business because of commercial reasons. … And it has nothing to do with tariffs announced,” Wockhardt Chairman Dr Habil Khorakiwala told businessline, against the backdrop of US President Trump’s announcement that pharmaceuticals would see unprecedented tariffs.
The company had third-party alliances in the US, and so was not expected to be hurt by the import tariffs. “Overall it is not a worthwhile proposition for us to continue,” he said. Khorakiwala did not give a timeline, but said, it would “not (be) during the year. We would do sometime, but we have decided to exit.”
Wockhardt’s US business stood at ₹25 crore in the third quarter of FY25 and ₹85 crore for the nine months FY25. According to its financial statement for the third quarter ended FY25, about 40 per cent of its revenues was from the UK, about 25 per cent from the emerging markets, followed by India, Ireland and then the US. The company’s total revenue for nine months (up to December 2024) FY25 stood at ₹2,290 crore. In Q3FY24, the company had incurred a loss of ₹ 7 crore on the sale of property, plant, and equipment attributable to the restructuring of the company’s US operations, it said.
In August 2022, Wockhardt management had initiated various cost optimisation measures, including restructuring its US business model, and closing the facility. All staff directly engaged by the subsidiary at the manufacturing plant were being relieved in a phased manner and in full compliance with the applicable local laws, it had said.
Wockhardt shares were down -10 per cent on Monday, at ₹1,212.80 on the BSE.
Published on April 7, 2025
