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Informist, Friday, Jun 19, 2026

 

AHMEDABAD – Aurobindo Pharma Ltd.'s wholly-owned subsidiary Aurobindo Pharma USA Inc. has received US Federal Trade Commission approval to acquire Lannet Co. LLC. for $250 million, the company said in its filings with the stock exchanges Friday. The approval has come with a condition for Aurobindo Pharma to divest four generic pharmaceutical products to Quagen Pharmaceuticals LLC.

 

As per the filings, Aurobindo Pharma USA will acquire 100% of the membership interest in Lannett Co. from Lannett Seller Holdco, Inc. The company said it hopes to close the transaction before the end of the month.

 

Under the terms of the US Federal Trade Commission's consent order, Aurobindo Pharma will have to divest four generic pharmaceutical products to Quagen Pharmaceuticals. These include mycophenolate mofetil oral suspension, an immunosuppressant prescribed to help prevent organ transplant rejection, and niacin extended release tablets, used to manage cholesterol levels and deficiency of niacin, a B-complex vitamin. Aurobindo Pharma will also have to divest rights over pilocarpine tablets, which are used to treat dry mouth after radiation therapy for neck and head cancer, and rabeprazole sodium delayed release tablets that are used to reduce stomach acid.

 

The Federal Trade Commission, in a separate release on its website, is stated to have taken the action of requiring Aurobindo Pharma to divest the four generic drug products "to protect American patients from higher drug costs". Aurobindo Pharma's acquisition of Lannett Co. will combine two of a limited number of competitors in the market for the four generic pharmaceutical products, as per the company's filing.

 

Last year, according to several public reports, Aurobindo Pharma had announced the acquisition of 100% membership interest in Lannett Co. for $250 million on a cash-free, debt-free basis. Lannett Co. is focussed on complex generics and controlled substances, primarily non-opioid treatments, as well as liquid formulations. The acquisition is also expected to grant Aurobindo Pharma access to Lannett Co.'s manufacturing facility in Seymour, Indiana, which has a production capacity of around 3.6 billion tablets annually.

 

For the quarter ended March, on a consolidated basis, Aurobindo Pharma had reported a net profit of INR 9.21 billion on revenues of INR 88.53 billion. At 0926 IST, its shares were at INR 1,467.20 on the National Stock Exchange, up 1.6% from Thursday.  End

 

Reported by Sunil Raghu

Edited by Rajeev Pai

 

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