Utility Therapeutics is involved in the development and approval of two brand pharmaceutical products for the treatment of urinary tract infections (UTI). The first product ‘Pivya’ is an FDA approved product to treat uncomplicated UTIs in the US market. The second product ‘MEC’ is in development for the treatment of complicated UTIs in the US market. As a product development company they have minimal turnover in last 3 years.
Alembic Pharma stated that the acquisition has been made to market the US FDA approved product and under-development product owned by the Utility in USA.
The acquisition cost involves a cash component plus profit share out of future profits. The total amount payable is approximately $12 million. The payout would happen in staggered manner over period of time, depending on milestones achieved.
Alembic Pharmaceuticals is a vertically integrated research and development pharmaceutical company. It manufactures and markets generic pharmaceutical products all over the world. Its research and manufacturing facilities are approved by regulatory authorities of many developed countries, including the USFDA.
The company’s consolidated net profit declined 12% to Rs 156.89 crore despite a 16.7% jump in net sales to Rs 1,769.64 crore in Q4 FY25 over Q4 FY24.
The scrip advanced 0.95% to currently trade at Rs 999.05 on the BSE.