Aurobindo Pharma to Acquire U.S.-based Lannett for $250 Million

31 Jul 2025 , 09:19 AM

Aurobindo Pharma is deepening its roots in the United States with a major acquisition. The Hyderabad-based drugmaker announced on July 30 that its U.S. subsidiary has signed an agreement to take over Lannett Company LLC for a total enterprise value of $250 million, or around ₹21,850 crore.

The acquisition will be executed by Aurobindo Pharma USA Inc. It will purchase 100% membership interest in Lannett from its parent entity, Lannett Seller Holdco, Inc. The deal is being carried out on a cash-free, debt-free basis, factoring in standardised working capital levels.

Lannett is a legacy pharmaceutical firm founded in 1942.  It is headquartered in Trevose, Pennsylvania, and brings with it a deep expertise in manufacturing complex generics. The company has built a strong presence in the U.S. market. Particularly in non-opioid controlled substances, including medications for ADHD. Over the years, it has also introduced a range of generic liquid formulations.

One of Lannett’s key strengths lies in its U.S.-based manufacturing operations. The company runs a 425,000 square foot cGMP-certified plant in Seymour, Indiana, capable of producing nearly 3.6 billion tablets annually. The facility is known for its robust compliance standards and operational efficiency.

For Aurobindo, the deal offers much more than just a portfolio expansion. It enables the Indian pharma major to enter the ADHD treatment space, an area where it currently has limited presence. The acquisition also brings a growing contract development and manufacturing (CDMO) business into Aurobindo’s fold, while offering significant surplus production capacity to support future scaling.

The transaction aligns with Aurobindo’s long-term strategy of enhancing its U.S. manufacturing footprint and deepening its play in complex generics.

Completion of the deal will hinge on regulatory approvals, including clearance from the U.S. Federal Trade Commission. Aurobindo expects to close the transaction in 8 to 12 months. The acquisition will be entirely funded through internal cash reserves.

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