India Pharma Outlook Team | Thursday, 31 July 2025
Hyderabad pharmaceutical company Aurobindo Pharma said on July 30 that its US-based unit, Aurobindo Pharma USA Inc., has signed a binding agreement to buy Lannett Company LLC for the overall enterprise value of $250 million (around ?21,850 crore). The deal will be on a cash-free debt-free basis, with consideration to be made normal working capital adjusted.
It was established in 1942 and is based in Trevose, Pennsylvania. Lannett is a seasoned generic player in the United States. The company focuses on hard-to-produce generics, mainly non-opioid controlled drugs like ADHD medications. Lannett has also launched a portfolio of generic liquids and has a 425,000 sq. ft. cGMP-compliant manufacturing plant in Seymour, Indiana, with capacity to produce 3.6 billion tablets annually.
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Aurobindo's acquisition is a strategic step to deepen its U.S. footprint, especially in the niche market of ADHD drugs in which the firm already has a relatively modest presence. In addition, the deal is accompanied by Lannett's increasing contract development and manufacturing organization (CDMO) business and surplus manufacturing capacity for supporting future scaling requirements.
The transaction is Aurobindo's step to fortify its long-term strategy to increase its U.S. manufacturing footprint and move into intricate generics. By making the most of Lannett's capabilities and resources, Aurobindo is seeking to spur its growth trajectory in the largest pharmaceutical market globally.
The transaction is subject to usual regulatory clearances, including approval of the Federal Trade Commission of the United States. Aurobindo anticipates that the transaction will be completed in 8 to 12 months. The transaction will be entirely funded by internal accruals.
