Wockhardt shares jump over 5%; here is why the stock is rallying today

Shares of Wockhardt jumped as much as 5.5% to ₹1,854 apiece on the NSE on Monday, July 14. The stock rallied as the pharma company on Friday, July 11, said it would exit the loss-making US generic business while enhancing focus on new drug discovery in the field of antibiotics and biological drugs for diabetes.

The company is undertaking a significant strategic realignment of its US business in line with its long-term vision to build a differentiated, innovation-driven pharmaceutical enterprise, the Mumbai-based drug firm said in a statement.

As part of this transition, the company has decided to exit the US generic pharmaceutical segment, paving the way for a deeper focus and investment in its advanced product portfolio, it added.

Wockhardt said it will focus on new antibiotic drug discovery, where Wockhardt has established a leadership position globally, with a strong pipeline of differentiated assets.

Besides, it would also look at its biological portfolio in insulin, leveraging advanced technologies to address critical unmet needs in diabetes care.

The company said its US generic business has been incurring losses over the past several years.

In FY2025 alone, the generic business incurred a loss of nearly $8 million, it said.

Following a comprehensive strategic review, the company has concluded that continuing in this segment would detract from its broader innovation agenda.

Accordingly, Wockhardt has filed for voluntary liquidation under Chapter 7 of the US Bankruptcy Code for its American step-down subsidiaries Morton Grove Pharmaceuticals and Wockhardt USA LLC. Both wholly-owned subsidiaries of Wockhardt Bio AG are incorporated in Delaware.

This decision, effective July 11, 2025, enables a clean and structured exit from a legacy segment and unlocks management bandwidth and capital for high-impact areas, it said.

Wockhardt Q4 FY25 Results

The company reported a consolidated net loss of ₹45 crore for the fourth quarter ended March 31, 2025 (Q4 FY25).

The drug maker had reported a net loss of ₹177 crore in the January-March quarter of FY24.

Revenue from operations rose to ₹743 crore in the fourth quarter as compared to ₹700 crore in the year-ago period, Wockhardt said in a regulatory filing.

For FY25, the company said its net loss stood at ₹57 crore as compared to ₹472 crore in the year-ago period.

Revenue increased to ₹3,012 crore as compared to ₹2,798 crore in the 2023-24 fiscal year.