Wockhardt to exit US generics business, files for voluntary liquidation of two subsidiaries

Wockhardt has announced a strategic shift in its operations in the United States, deciding to exit the generics pharmaceutical segment in the country. 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 Inc. and Wockhardt USA LLC.This move marks a broader strategic realignment, with Wockhardt aiming to focus on its innovation-driven portfolio, particularly in new antibiotic drug discovery and insulin-based biologicals. The company stated that the decision follows years of losses in the US generics segment, with losses nearing $8 million in FY25 alone.
Wockhardt USA LLC contributed approximately 3% to the company’s income in the last financial year, while Morton Grove Pharmaceuticals recorded no income. Morton Grove’s net worth stood at 4.6%, primarily from goodwill, whereas Wockhardt USA’s net worth was negative.
The liquidation process is expected to be completed within 15 months.Wockhardt reaffirmed its commitment to operations in India, the UK, Ireland, and other markets where its businesses continue to perform strongly. The company’s global presence spans over 27 nationalities and includes manufacturing and research facilities in India, the UK, and Ireland. Approximately 77% of its revenues are derived from international markets.

Shares of the company closed more than 3% higher in the session on Friday (11 July). The stock has gained over 20% so far this year.

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