Alembic Pharma bets on branded drugs in the US

Alembic Pharmaceuticals Ltd is expanding its branded specialty drug portfolio in the US as part of a ‘twin engine play’ to drive market growth as generic pricing pressure continues, finance chief G. Krishnan said. Mint in an interview.

The drugmaker entered the segment in the fourth quarter of 2025-26 and launched Pivya in March to treat uncomplicated urinary tract infections in women.

“We are planning to build this as a franchise, so new branded products will be added to this franchise,” said Krishnan, adding that the company will want to focus on strengthening the women’s health segment before expanding into other therapeutic areas.

The foray into branded drugs marks a strategic turning point for the generic drugmaker. The generic drug market, which consists of unbranded drugs that are exact copies of branded or patented drugs, faces ongoing pricing pressure due to customer consolidation, negatively impacting companies’ margins.

Price pressure will continue, Krishnan said. “The only way to respond to this generic drug pricing problem is to really be more innovative in your processes and your cost controls in the core business,” he explained.

Krishnan said the company hopes to move into branded specialty drugs that offer a better value proposition in the U.S., but emphasized that its core generics business will remain the priority, calling it a “twin engine play.”

In 2024-25, the company acquired US-based Utility Therapeutics for $12 million, acquiring exclusive commercial rights to Pivya (pivmecillinam) and another antibiotic, mecillinam. “After the acquisition, we were working on building a field force and a launch plan for the product. We did a soft launch in February and are now present in almost 30 regions,” he said.

“We should see growth and volume scale increasing over the next three to four quarters,” he added.

The US business accounts for 30% of total revenue. US business grows 13% year-on-year in 2025-26 ₹2,206 crore. The company expects low double-digit to mid-range growth in the U.S. in 2026-27 as it grows its branded business.

Revenue from operations increased by 4% YoY in Q226 ₹Net profit increased by 29% to Rs 1,848 crore ₹203 crore.