Alembic Pharmaceuticals Ltd is expanding its branded speciality drugs portfolio in the US as part of a ‘twin engine play’ to boost growth in the market as generic pricing pressure continues, chief financial officer G. Krishnan told Mint in an interview.
The drugmaker entered the segment in the fourth quarter of 2025-26, launching Pivya in March to treat uncomplicated urinary tract infections in women.
“We intend to build this as a franchise, so there will be new branded product additions into this franchise,” Krishnan said, adding that the company would want to focus on strengthening the women’s health segment before expanding into other therapeutic areas.
The entry into branded drugs marks a strategic pivot for the generics drugmaker. The generics market—unbranded drugs that are exact copies of brand-name or patented drugs—has been facing continued pricing pressure from customer consolidation, weighing on companies’ margins.
The pricing pressure is here to stay, said Krishnan. “The only way to respond to that generics pricing challenge is to really be more innovative on your processes and cost controls on the core business,” he explained.
While the company hopes to push into branded speciality drugs, which offer a better value proposition in the US, its core generics business will continue to remain a priority, Krishnan emphasized, calling it a “twin engine play”.
In 2024-25, the company acquired US-based Utility Therapeutics for $12 million, gaining 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 now we are present in almost 30 territories,” he said.
“We should see the growth and scale of volumes picking up in the next three to four quarters,” he added.
The US business accounts for 30% of its total revenue. The US business grew 13% year-on-year in 2025-26 to ₹2,206 crore. The company expects low double-digit to mid-teens growth in the US in 2026-27, as it scales up the branded business.
In Q4FY26, its revenue from operations increased by 4% on year to ₹1,848 crore, while net profit grew 29% to ₹203 crore.
Indian drugmakers are leaders in the US generics space, and an entry into branded drugs, which requires calibrated investments, a dedicated salesforce to reach doctors, and a slow-and-steady approach, has been challenging for many, according to analysts tracking the sector.
Industry leader Sun Pharma remains one of the few to have successfully scaled up its speciality branded drugs portfolio in the US.
Alembic Pharma’s calibrated strategy of starting with two in-licensed products in women’s health and building a franchise slowly may serve them well. “Currently, there is room for them to grow in the generics space…by the time that headroom is over, they would have a branded drugs business meaningfully scaled up,” said Vishal Manchanda, pharma analyst at Systematix Group.
“It would make sense for them to do portfolio additions in the same class, wherein they can meet doctors in the same therapy, to then be able to scale up,” he added.
