Aurobindo Pharma’s US subsidiary received U.S. Federal Trade Commission (FTC) approval to proceed with the acquisition of Lannett Company LLC in a deal valued at $250 million, the company announced on Monday.
The acquisition would be carried out on a cash-free, debt-free basis and, inclusive of normalized working capital, is expected to close before the end of June 2026. The transaction is expected to be immediately accretive to Aurobindo Group’s earnings per share, it said in a regulatory filing.
The pharma major said that the Lannett acquisition is anticipated to generate meaningful cost efficiencies, SG&A synergies, and operational integration advantages. It will also enhance Aurobindo Pharma’s portfolio with a differentiated pipeline of complex generics and controlled substances, supporting sustainable long-term growth.
“This acquisition represents a highly compelling strategic and financial opportunity for Aurobindo USA,” said Swami S. Iyer, CEO of Aurobindo Pharma USA. “It accelerates our revenue growth, strengthens our US-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.”
Lannett is a Pennsylvania-based generic pharmaceutical company that specialises in the development and commercialisation of a diversified portfolio of complex, non-opioid controlled substances.
The acquisition will significantly expand Aurobindo USA’s product offering in this segment while adding a US-based manufacturing facility to its network. Lannett’s manufacturing site in Seymour, Indiana, has the capacity to scale production to approximately 4 billion doses annually, which will now strengthen 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.
Tim Crew, Lannett Company’s CEO, 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.”
Source: Economic Times