Aurobindo Pharma Acquires Lannett for Rs 2,185 Cr to Boost U.S. Presence, ADHD Line
Hyderabad: In a major strategic move, Aurobindo Pharma Limited has announced that its wholly owned subsidiary, Aurobindo Pharma USA Inc, has entered into a definitive agreement to acquire 100% membership interest in Lannett Company LLC from Lannett Seller Holdco Inc. The transaction is valued at USD 250 million (Rs 2,185 crore) on a cash-free and debt-free basis.
Founded in 1942, Lannett is a U.S.-based pharmaceutical company headquartered in Trevose, Pennsylvania. The company focuses on complex generics and controlled substances, primarily non-opioid ADHD treatments, as well as liquid formulations. The acquisition grants Aurobindo access to Lannett’s 425,000 sq. ft. cGMP manufacturing facility in Seymour, Indiana, which has a production capacity of around 3.6 billion tablets annually.
Aurobindo stated in a regulatory filing that the acquisition aligns with its strategic goal of expanding its U.S. manufacturing capabilities and footprint. “This transaction aligns with Aurobindo’s strategic objective to expand its U.S. manufacturing footprint by enhancing its existing domestic capabilities,” the company noted.
The deal also provides Aurobindo with entry into a growing Contract Development and Manufacturing Organization (CDMO) business and a U.S.-based portfolio that is complementary, profitable, and EBITDA-positive. Lannett currently employs over 500 personnel, with approximately 435 employees at its Indiana site, and has maintained a solid record of regulatory and DEA compliance.
Financially, Lannett has remained stable, with revenues of $314 million (Rs 2,744 crore) in FY 2023, $286 million (Rs 2,499 crore) in FY 2024, and $306 million (Rs 2,674 crore) for the trailing twelve months of FY 2025.
The acquisition is expected to provide significant operational and cost synergies to Aurobindo. It adds a differentiated and profitable portfolio of controlled substances to Aurobindo’s offerings, and the Seymour facility presents an opportunity for future capacity expansion. Furthermore, the deal allows Aurobindo to capitalize on NCE-1 exclusivity opportunities through Lannett’s late-stage research pipeline and will help lower unit costs through improved efficiency and optimized SG&A functions.
The transaction, however, remains subject to regulatory approvals, including clearance from the U.S. Federal Trade Commission (FTC). It is expected to close within the next 8 to 12 months, depending on the regulatory timeline.
Advisors to Aurobindo on the deal include Sullivan & Cromwell, Khaitan & Co, EY India, Sagene Advisors, KNAV, Ice Miller, USI, and IES Consulting. On the other hand, Lannett was advised by Raymond James & Associates as financial advisor, with Honigman LLP and Dechert LLP serving as legal counsel.
