A wholly owned subsidiary of Aurobindo Pharma, Aurobindo Pharma USA, has received clearance from the US Federal Trade Commission (FTC) to proceed with its acquisition of Lannett Company LLC. The deal, valued at $250 million on a cash-free, debt-free basis, is anticipated to close before the end of June 2026.
Strategic Expansion in US Market
Lannett, a Pennsylvania-based generic pharmaceutical company, specializes in the development and commercialization of a diverse portfolio of complex, non-opioid controlled substances. This acquisition is poised to significantly enhance Aurobindo USA’s product offerings in this specialized segment.
Beyond portfolio expansion, the transaction will integrate a US-based manufacturing facility into Aurobindo’s network. Lannett’s site in Seymour, Indiana, boasts a capacity to scale production to approximately 4 billion doses annually. This increased domestic manufacturing footprint aligns with US policy priorities aimed at bolstering supply chain resilience and increasing pharmaceutical production within the country.
Financial and Operational Synergies Anticipated
Aurobindo Pharma expects the acquisition to be immediately accretive to the Aurobindo Group’s earnings per share. In addition to these near-term financial benefits, the company foresees meaningful cost efficiencies, selling, general, and administrative (SG&A) synergies, and operational integration advantages.
The deal is also expected to enrich Aurobindo’s pipeline with a differentiated array of complex generics and controlled substances, thereby supporting sustainable long-term growth.
Swami S Iyer, Chief Executive Officer for Aurobindo Pharma USA, stated, “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.”
Tim Crew, Chief Executive Officer of Lannett Company, expressed his enthusiasm, saying, “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.”