Alembic Pharma Buys UK's Utility Therapeutics for USD 12 Million

Alembic Pharmaceuticals has entered into a definitive agreement to acquire UK-based Utility Therapeutics Ltd. for USD 12 million, a strategic expansion into the branded anti-infective space in the United States.

The acquisition will be made through Alembic's wholly owned US subsidiary and is comprised of upfront payments as well as earn-outs based on milestone achievements, with the transaction expected to be completed in the next 30 days, subject to the normal regulations for Alembic's foreign acquisition.

With the acquisition, Alembic will get exclusive rights to Pivya, an FDA approved product for drug for uncomplicated urinary tract infections (UTIs), and MEC, a pipeline asset for complicated UTIs. This acquisition allows Alembic to deepen its presence in the US pharmaceutical market in specialty branded therapies, which have higher margins and long-term growth prospects.

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Alembic's strategic entry into the branded anti-infectives area fits well within Alembic's focus on regulated markets and it is also in the critical therapeutic area of infections related to antibiotic resistance and treatments for UTIs. With this shift, Alembic is transitioning away from pure-play generics to value driven innovation in its evolution as a global company.

Despite a 12% dip in net profit in Q4 FY25, Alembic reported a 16.7% rise in revenue, reflecting robust market performance. The stock reacted positively to the acquisition news, trading slightly higher in early sessions.