Aurobindo Pharma receives FTC nod for $250 million acquisition of Lannett Company

Aurobindo Pharma announced that its wholly owned subsidiary, Aurobindo Pharma USA, Inc., has received approval from the U.S. Federal Trade Commission (FTC) to proceed with the acquisition of Lannett Company LLC.

The transaction, valued at $250 million on a cash-free, debt-free basis, including normalized working capital, is expected to be completed before the end of June 2026.

Lannett, a Pennsylvania-based generic pharmaceutical company, focuses on the development and commercialization of a diversified portfolio of complex, non-opioid controlled substances. The acquisition is expected to significantly strengthen Aurobindo USA?s presence in this segment while adding a U.S.-based manufacturing facility to its operations.

The deal includes Lannett?s manufacturing facility in Seymour, Indiana, has the capacity to scale production to approximately 4 billion doses annually, strengthening Aurobindo USA?s domestic manufacturing footprint. This enhanced capacity aligns with U.S. policy priorities aimed at improving supply chain resilience and increasing domestic pharmaceutical production.

According to the company, the acquisition is expected to be immediately accretive to the Aurobindo Group?s earnings per share. It is also anticipated to generate cost efficiencies, SG&A synergies and operational integration benefits while expanding the company?s portfolio of complex generics and controlled substances, supporting long-term growth.

Swami S. Iyer, chief executive officer of Aurobindo Pharma USA, said, ?This acquisition represents a highly compelling strategic and financial opportunity for Aurobindo USA. It accelerates our revenue growth, strengthens our U.S.-based manufacturing capabilities, and enhances our position in complex, non-opioid controlled substances. We are confident it will deliver immediate earnings accretion while creating long-term value for our shareholders through operational synergies and pipeline expansion. We are pleased to welcome the Lannett team and look forward to leveraging our combined strengths to expand and ensure reliable access to critical medications for patients.?

Tim Crew, Lannett Company?s chief executive officer, said, ?We are delighted to be joining forces with Aurobindo. As one of the nation?s oldest generic pharmaceutical companies, Lannett has a proud history of helping patients access affordable medicines. Aurobindo?s market reach and resources will help make our portfolio of medicines even more affordable and accessible for patients everywhere. Our board and owners extend their sincere appreciation to the outstanding teams at both companies whose professionalism, commitment, and hard work have successfully brought us to this important moment. We look forward to building on all that has come before as we begin a bright and exciting next chapter.?

Aurobindo Pharma is engaged in the manufacturing and marketing of active pharmaceutical ingredients (APIs), generic pharmaceuticals, and related services. The company reported a 2% rise in consolidated net profit to Rs 921.26 crore on a 4.4% increase in net sales to Rs 8,751.50 crore in Q4 FY26 over Q4 FY25.

The counter shed 0.92% to Rs 1,484 on the BSE.

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