Alembic Pharma Acquires Utility Therapeutics in $12 Million Deal to Expand U.S. Branded Drug Portfolio
Strategic acquisition marks Alembic’s shift from generics to specialty and branded pharmaceuticals in the U.S.
Mumbai, India / London, UK — In a strategic move to expand its footprint in the U.S. pharmaceutical market, Alembic Pharmaceuticals has announced the acquisition of UK-based Utility Therapeutics by its U.S. subsidiary, Alembic Pharmaceuticals, Inc., for a consideration of $12 million (over INR 100 crore). The acquisition will be executed in phases, tied to specific developmental and commercial milestones.
This acquisition represents a major pivot for Alembic, which has historically been known for its strong generics’ portfolio. With this deal, the Indian pharma major aims to build a branded and specialty pharmaceutical presence in the U.S. a high-margin segment that offers long-term growth potential.
“This acquisition gives us a strategic entry into the specialty and branded prescription products. This will give us exposure to the branded pharmaceutical market with a near-term commercial launch,” said Pranav Amin, Managing Director, Alembic Pharmaceuticals.
Utility Therapeutics: A Targeted UTI Treatment Focus
Utility Therapeutics is focused on developing treatments for urinary tract infections (UTIs), a growing therapeutic area with unmet clinical needs in the U.S. market. Its lead product, Pivya (pivmecillinam), received FDA approval in April 2024 for the treatment of uncomplicated UTIs. A second candidate, MEC, is under development for complicated UTI cases.
Alembic plans to commercialize Pivya in the U.S. by Q4 2025, marking its first branded product launch in the American market.
“Alembic Pharmaceuticals understands the clinical and commercial value of Pivya and will bring this proven treatment to female patients in need across the U.S.,” said Tom Hadley, President and CEO, Utility Therapeutics.
A Strategic Shift for Alembic
The acquisition underscores Alembic’s intentional diversification strategy, shifting from a largely generics-driven business to one that includes branded and specialty products, especially in regulated markets like the United States.
While Utility Therapeutics has recorded limited revenues over the past three years, Alembic views the acquisition as a platform to build a U.S. specialty pharmaceuticals business, which offers significantly higher margins, brand value, and pricing power compared to generics.
Strong Market Backdrop
Alembic Pharmaceuticals, established in 1907, has been a major player in India’s pharmaceutical landscape. The company holds a leadership position in macrolide antibiotics and is known for its vertical integration across development, manufacturing, and marketing.
Its stock performance has reflected investor confidence, with Alembic shares rising nearly 29% in the last six months, significantly outperforming the Nifty 50, which posted a 12% gain over the same period.
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MBBS, MS, FPCS (USA) Paediatric Cardiac Surgeon
