Aurobindo Pharma Secures FTC Approval for USD 250 Million Lannett Acquisition
Hyderabad: Aurobindo Pharma Limited has announced that its wholly owned subsidiary, Aurobindo Pharma USA, Inc., has received approval from the United States Federal Trade Commission (FTC) to proceed with the acquisition of Lannett Company LLC, a Pennsylvania-based generic pharmaceutical company.
According to the company, the transaction is valued at USD 250 million on a cash-free, debt-free basis, including normalized working capital. The acquisition is expected to be completed before the end of June 2026.
Lannett specializes in the development and commercialization of a diversified portfolio of complex generic pharmaceutical products, particularly non-opioid controlled substances. Aurobindo stated that the acquisition will significantly strengthen its presence in this segment while adding a manufacturing facility in the United States to its operational network.
The company noted that Lannett's manufacturing facility located in Seymour, Indiana, has the capacity to produce approximately 4 billion doses annually. The addition of the facility is expected to enhance Aurobindo USA's domestic manufacturing capabilities and support ongoing efforts to strengthen pharmaceutical supply chain resilience and local production in the United States.
Aurobindo Pharma further stated that the transaction is expected to be immediately accretive to the group's earnings per share. The acquisition is also anticipated to generate operational efficiencies, cost synergies, and SG&A benefits while strengthening the company's portfolio through a differentiated pipeline of complex generics and controlled substances. The company believes these benefits will support sustainable long-term growth.
Commenting on the development, Swami S. Iyer, Chief Executive Officer of Aurobindo Pharma USA, said the acquisition represents a significant strategic and financial opportunity for the company. He stated that the transaction would accelerate revenue growth, strengthen U.S.-based manufacturing capabilities, and reinforce Aurobindo's position in the complex non-opioid controlled substances segment while creating long-term value through operational synergies and pipeline expansion.
Tim Crew, Chief Executive Officer of Lannett Company, welcomed the transaction and said the combination would help expand access to affordable medicines. He noted that Aurobindo's resources and market reach would enhance the accessibility of Lannett's product portfolio while opening a new chapter for both organizations.
According to the press release issued by Aurobindo Pharma Limited, the acquisition is expected to strengthen the company's U.S. business operations, expand its portfolio of complex generic products, and enhance domestic manufacturing capabilities through the addition of Lannett's production infrastructure. The company also highlighted the anticipated financial and operational benefits associated with the transaction.
Aurobindo Pharma is a Hyderabad-headquartered global pharmaceutical company operating in more than 150 countries. The company has over 30 manufacturing and packaging facilities approved by major regulatory agencies, including the US FDA, UK MHRA, EDQM, Japan PMDA, WHO, Health Canada, South Africa MCC, and Brazil ANVISA.
