Aurobindo Pharma shares in focus as US FTC clears $250 million Lannett acquisition

Shares of Aurobindo Pharma Ltd are in focus on Monday after a wholly-owned subsidiary of the company, Aurobindo Pharma USA, received approval from the US Federal Trade Commission (FTC) to proceed with the acquisition of Lannett Company LLC for $250 million on a cash-free, debt-free basis. The deal is inclusive of normalized working capital and is expected to close before the end of June 2026, Aurobindo Pharma said in an exchange filing.

Lannett is a Pennsylvania-based generic pharmaceutical company. It specialises in the development and
commercialisation of a diversified portfolio of complex, non-opioid controlled substances. The acquisition, Aurobindo Pharma said, will significantly expand Aurobindo USA’s product offering in this segment while adding a US-based manufacturing facility to its network.

Aurobindo Pharma shares are up 26 per cent in 2026 so far compared with an 8 per cent rise in the Nifty Pharma index during the same period.

"Lannett’s manufacturing site in Seymour, Indiana, has the capacity to scale production to approximately 4
billion doses annually, strengthening Aurobindo USA’s domestic manufacturing footprint. This enhanced
capacity aligns with US policy priorities aimed at improving supply chain resilience and increasing
domestic pharmaceutical production, Aurobindo Pharma said.

The domestic rug maker said the transaction is expected to be immediately accretive to Aurobindo Group’s earnings per share. In addition to near-term financial benefits, the acquisition is anticipated to generate meaningful cost efficiencies, SG&A synergies, and operational integration advantages. It will also enhance the company’s portfolio with a differentiated pipeline of complex generics and controlled substances, supporting
sustainable long-term growth, Aurobindo Pharma said.

Its Chief Executive Officer for Aurobindo Pharma USA, Swami S Iyer, said: “This acquisition represents a
highly compelling strategic and financial opportunity for Aurobindo USA. It accelerates our revenue
growth, strengthens our U.S.-based manufacturing capabilities, and enhances our position in complex,
non-opioid controlled substances. We are confident it will deliver immediate earnings accretion while
creating long-term value for our shareholders through operational synergies and pipeline expansion."

Tim Crew, Lannett Company’s Chief Executive Officer, said, “We are delighted to be joining forces with
Aurobindo. As one of the nation’s oldest generic pharmaceutical companies, Lannett has a proud history of
helping patients access affordable medicines. Aurobindo’s market reach and resources will help make our
portfolio of medicines even more affordable and accessible for patients everywhere."