- Aurobindo Pharma received US FTC clearance for acquiring Lannett Company for $250 million
- FTC required divestment of four low-margin products to Quagen Pharma as part of approval
- Lannett reported $306 million revenue and held 113 approved ANDAs at acquisition time
Aurobindo Pharma has received clearance from the US Federal Trade Commission (FTC) for its acquisition of generic drugmaker Lannett Company, removing a key regulatory hurdle for the transaction announced last year. The Hyderabad-based drugmaker had agreed to acquire Lannett in July 2025 for $250 million as part of its strategy to strengthen its presence in the US generics market.
As part of the approval process, the FTC required the divestment of four products to Quagen Pharma. Analysts noted that these are older, mature products that are likely to have relatively low margins. The products are estimated to contribute annual sales of $15-20 million, or roughly 6-7% of Lannett's revenue base.
Despite the divestment, the acquisition is expected to remain financially meaningful for Aurobindo. At the time of the transaction, Lannett reported trailing 12-month revenue of about $306 million and had a portfolio of 113 approved abbreviated new drug applications (ANDAs).
Brokerage estimates suggest the acquisition could add Rs 7-8 per share to Aurobindo's earnings once fully integrated.
The deal also brings manufacturing capacity into Aurobindo's network. Lannett's Indiana facility has an annual production capacity of around 3.6 billion tablets, providing additional scale in the US market.
The FTC approval comes earlier than the timeline indicated by management, potentially allowing the company to begin integration efforts sooner than expected.
Investors will now focus on potential growth triggers within Lannett's portfolio. Key developments include regulatory decisions on generic Advair (gAdvair) and Insulin Glargine, both of which are seen as important opportunities in the US generics market.
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