Aurobindo Pharma USA gets FTC nod to acquire Lannett for $250 million
Aurobindo Pharma USA has received FTC approval to acquire Lannett Company for $250 million. The deal, expected to close by June 2026, will expand Aurobindo's product offerings and U.S. manufacturing capacity. The acquisition is anticipated to be immediately accretive to earnings and create long-term value.
The acquisition of Lannett Company for $250 million is a significant strategic move that will enhance Aurobindo Pharma's market position, product offerings, and manufacturing footprint in the U.S., leading to substantial financial and operational benefits.
The acquisition is expected to be immediately accretive to earnings, expand the product portfolio, enhance manufacturing capabilities, and create long-term value for shareholders.
Aurobindo Pharma USA, Inc. ("Aurobindo USA"), a wholly owned subsidiary of Aurobindo Pharma Limited, has received approval from the U.S. Federal Trade Commission (FTC) to acquire Lannett Company LLC ("Lannett"). The transaction, valued at $250 million on a cash-free, debt-free basis inclusive of normalized working capital, is anticipated to close before the end of June 2026.
Lannett, a generic pharmaceutical company based in Pennsylvania, specializes in developing and commercializing complex, non-opioid controlled substances. This acquisition is set to significantly expand Aurobindo USA's product portfolio in this niche and add a U.S.-based manufacturing facility in Seymour, Indiana. This facility has an annual production capacity of approximately 4 billion doses, which will bolster Aurobindo USA's domestic manufacturing capabilities and align with U.S. policy objectives for supply chain resilience and increased domestic pharmaceutical production.
The acquisition is projected to be immediately accretive to Aurobindo Group's earnings per share, offering near-term financial benefits, cost efficiencies, SG&A synergies, and operational integration advantages. It will also enhance the company's pipeline with differentiated complex generics and controlled substances, supporting long-term growth.
Swami S. Iyer, CEO of Aurobindo Pharma USA, stated that the acquisition is a compelling strategic and financial opportunity, accelerating revenue growth, strengthening U.S. manufacturing, and enhancing their position in complex controlled substances. He expressed confidence in immediate earnings accretion and long-term value creation. Tim Crew, CEO of Lannett Company, expressed delight in joining forces with Aurobindo, highlighting Lannett's history of providing affordable medicines and Aurobindo's market reach to further enhance affordability and accessibility.
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Aurobindo Pharma Limited filed this with the NSE as a statutory disclosure, categorised under acquisition. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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