Aurobindo Pharma USA, Inc, a wholly owned subsidiary of Aurobindo Pharma Ltd, has received approval from the US 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 and inclusive of normalised working capital, is expected to close before the end of June 2026.
Deal expands complex generics portfolio
Pennsylvania-based Lannett specialises in the development and commercialisation of a diversified portfolio of complex, non-opioid controlled substances.
The acquisition is expected to significantly expand Aurobindo USA’s product offerings in this segment while adding a manufacturing facility in the United States to its network.
Manufacturing footprint gets a boost
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.
The additional capacity aligns with US policy priorities aimed at improving pharmaceutical supply chain resilience and increasing domestic drug production.
Transaction to be earnings accretive
The acquisition is expected to be immediately accretive to Aurobindo Group’s earnings per share. Besides near-term financial benefits, the transaction is anticipated to generate meaningful cost efficiencies, SG&A synergies and operational integration benefits. It will also strengthen the company’s portfolio through a differentiated pipeline of complex generics and controlled substances, supporting sustainable long-term growth.
Strategic opportunity
Aurobindo Pharma USA Chief Executive Officer Swami S Iyer said, “This acquisition represents a highly compelling strategic and financial opportunity for Aurobindo 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.
“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.”
Move will make medicines more affordable
Lannett Company Chief Executive Officer Tim Crew 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.”