Alembic Pharma to Deepen US Presence with $12 Million Utility Therapeutics Deal

Alembic Pharmaceuticals has entered into an agreement to acquire Utility Therapeutics, a company based in the United Kingdom that develops drugs for urinary tract infections (UTIs). The buyer in this case is Alembic’s US subsidiary, Alembic Pharmaceuticals Inc., which will take over full ownership of Utility.

The total value of the deal stands at around $12 million. The company expects to close the transaction within the next month. Utility has carved out a niche in the UTI segment, working on both approved products and therapies still in the pipeline.

Alembic plans to commercialise Utility’s portfolio in the United States, where demand for new antibiotics continues to rise. The company stated that there were no promoter-linked or related-party elements involved in this deal.

The acquisition is being seen as a strategic step to strengthen Alembic’s presence in the US drug market, especially in a category with few new entrants.bUtility’s focus fits neatly into Alembic’s long-term plans to expand its footprint in specialty and anti-infective therapies.

On a related note, just two days earlier on June 30 Alembic received USFDA approval for its liposomal Doxorubicin Hydrochloride injection. That drug is used in the treatment of certain cancers, including ovarian cancer and AIDS-related Kaposi’s sarcoma. Together, the acquisition and FDA nod suggest a pattern: Alembic is building momentum in the US market, one deal and one approval at a time.

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