Deal Strengthens US Manufacturing And Expands Complex Generics Portfolio
Aurobindo Pharma has received approval from the US Federal Trade Commission (FTC) for its proposed $250 million acquisition of Lannett Company LLC through its subsidiary, Aurobindo Pharma USA, Inc.
According to a regulatory filing, the transaction is valued at $250 million on a cash-free, debt-free basis, including normalised working capital, and is expected to close before the end of this month.
Pennsylvania-based Lannett is a generic pharmaceutical company focused on the development and commercialisation of a diversified portfolio of complex, non-opioid controlled substances. The acquisition is expected to significantly strengthen Aurobindo’s position in this segment while expanding its manufacturing presence in the United States.
How Will The Acquisition Benefit Aurobindo Pharma?
The company said the acquisition will accelerate revenue growth, expand its product portfolio, and strengthen its US-based manufacturing capabilities.
“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,” said Swami S. Iyer, CEO of Aurobindo Pharma USA.
Aurobindo added that the transaction is expected to be immediately accretive to the group’s earnings per share (EPS) and will support sustainable long-term growth through a differentiated pipeline of complex generic medicines and controlled substances.
What Does Lannett Bring To The Deal?
A key asset in the acquisition is Lannett’s manufacturing facility in Seymour, Indiana. The facility has the capacity to produce approximately 4 billion doses annually, significantly enhancing Aurobindo USA’s domestic production capabilities.
The company noted that the expanded manufacturing footprint aligns with ongoing US efforts to strengthen pharmaceutical supply chains and increase domestic drug manufacturing capacity.
Lannett CEO Tim Crew said the partnership would help expand access to affordable medicines.
“Aurobindo’s market reach and resources will help make our portfolio of medicines even more affordable and accessible for patients everywhere,” Crew said.
The acquisition marks another important step in Aurobindo Pharma’s global expansion strategy as it continues to strengthen its position in high-value pharmaceutical segments and deepen its presence in the US healthcare market.
