Shares of Aurobindo Pharma Ltd. rose more than 1.5% on Friday after the company said its wholly owned subsidiary, Aurobindo Pharma USA Inc., had received approval from the US Federal Trade Commission for its proposed acquisition of Lannett Company LLC.
The approval clears a key regulatory hurdle for the transaction, under which Aurobindo Pharma USA will acquire 100% membership interest in Lannett Company LLC from Lannett Seller Holdco Inc. The company said it expects to complete the acquisition before the end of June and will keep the stock exchanges informed of further developments.
Aurobindo had first announced the proposed Lannett acquisition in July 2025. 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. The deal is aimed at strengthening the drugmaker's US generics portfolio and expanding its manufacturing footprint in the market.
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.
ALSO READ: Aurobindo Pharma Clears Major US Regulatory Hurdle In $250 Million Lannett Deal
Aurobindo Pharma Ltd. Share Price Today
Aurobindo Pharma Ltd. Share Price Today
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The scrip rose as much as 1.82 to Rs 1,467.10 apiece on Friday at 10:18 am after opening 0.71%. This compares to a 0.72% fall in the NSE Nifty 50 Index.
It has risen 35.80% in the last 12 months and 24.15% year-to-date. Total traded volume so far in the day stood at 1.30 times its 30-day average. The relative strength index was at 46.99.
Out of 28 analysts tracking the company, 19 maintain a 'buy' rating, five maintain a "hold", and four maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 1,572.96 implies an upside of 6.9%
ALSO READ: Behind India Inc's US Investments: Pharma Leads With $19 billion Push; IT, Energy Follow
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