Aurobindo Pharma’s US Arm Receives FTC Approval For Lannett Buyout; Deal Valued At $250 Million

Aurobindo Pharma's plan to acquire U.S.-based generic drugmaker Lannett Company has cleared an important hurdle.

The Hyderabad-headquartered pharmaceutical company said its subsidiary, Aurobindo Pharma USA, has received approval from the U.S. Federal Trade Commission (FTC) for the transaction.

The acquisition is valued at $250 million and is expected to be completed before the end of June 2026. The deal has been structured on a cash-free and debt-free basis and includes normalised working capital.

Why Lannett Matters To Aurobindo

Lannett may not be among the largest names in the U.S. generic drug market, but it brings something Aurobindo considers valuable - a portfolio of complex medicines and a manufacturing base within the United States.

The company develops and sells a range of non-opioid controlled substances and other generic pharmaceutical products.

Its production facility in Seymour, Indiana, is capable of manufacturing as many as 4 billion doses a year once fully utilised.

For Aurobindo, that facility could provide additional scale in a market where domestic manufacturing has become a major policy focus.

The acquisition also gives the Indian drugmaker an opportunity to widen its product basket while increasing its manufacturing presence closer to end customers.

Management Sees Immediate Benefits

Aurobindo Pharma USA Chief Executive Officer Swami S. Iyer said the transaction offers both strategic and financial benefits.

According to the company, the acquisition is expected to support future revenue growth, strengthen manufacturing capabilities in the U.S. and improve its position in specialised generic medicine categories.

Lannett Chief Executive Officer Tim Crew said the partnership could help expand access to affordable medicines by combining Lannett's product portfolio with Aurobindo's larger distribution network and resources.

FTC Approval Comes With A Condition

The regulator's approval was not without conditions.

The FTC has directed Aurobindo to divest four generic drug products to Quagen Pharmaceuticals as part of the transaction.

According to the commission, the step is necessary to maintain competition in a few drug categories where the merger could otherwise reduce the number of market participants.

The affected products include medicines used in critical treatment areas, such as organ transplant care and therapies for dry mouth following radiation treatment.

The FTC said the divestiture requirement is intended to prevent excessive market concentration and protect patients from possible price increases.

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Closing Expected Soon

With the regulatory clearance now in place, attention turns to the final completion of the acquisition.

The transaction is expected to close before June 2026 ends, after which Lannett will become part of Aurobindo Pharma's U.S. operations.

Sources:

The Hindu

The Economic Times