Alembic Pharma Acquires Utility Therapeutics in $12 Mn Deal to Strengthen US Market Presence

The acquisition marks a strategic move by Alembic to expand its presence in the American specialty and branded pharmaceutical market, a significant shift from its traditional generics portfolio.

Indian pharmaceutical giant, Alembic Pharmaceuticals, has announced that its US subsidiary, Alembic Pharmaceuticals, Inc, has acquired UK-based Utility Therapeutics in a $12 million (over INR 100 Cr) deal. The staggered acquisition will be completed over a period, subject to milestone achievements.

The acquisition marks a strategic move by Alembic to expand its presence in the American specialty and branded pharmaceutical market, a significant shift from its traditional generics portfolio.

Utility Therapeutics specializes in the development and approval of pharmaceutical products targeting urinary tract infections (UTIs). Its lead asset, Pivya (pivmecillinam), received FDA approval in April 2024 for treating uncomplicated UTIs in the US market. The company is also developing MEC, a candidate for treating complicated UTIs.

“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.

Alembic plans to commercialize Pivya, in the US market by the fourth quarter of 2025. Though Utility Therapeutics has posted minimal turnover in the past three years, the acquisition is expected to offer Alembic a platform to build a branded pharmaceutical business in the US.

Tom Hadley, President and CEO, Utility Therapeutics, said, “Alembic Pharmaceuticals understands the clinical and commercial value of Pivya and will bring this proven treatment to female patients in need across the US.”

The acquisition not only diversifies Alembic’s US operations but positions it to build capabilities in the branded pharmaceutical space, a segment known for higher margins and brand loyalty compared to generics.

Established in 1907, Alembic Pharmaceuticals is a prominent pharmaceutical company in India, recognized for its vertical integration in developing, manufacturing, and marketing pharmaceutical products and substances. The company claims to hold a leading position in the macrolides segment of anti-infective drugs in India.

In the last six months, Alembic Pharma's stock has exhibited strong performance, rallying nearly 29%, outperforming the Nifty 50 benchmark, which rose approximately 12% during the same period.

Stay tuned for more such updates on Digital Health News