Amid Trump tariff fears, Aurobindo strikes biggest deal; To acquire Lannett for Rs 2185 crore
2,185 crore) on a cash-free, debt-free basis.
The acquisition, to be done through Aurobindo's wholly-owned US subsidiary Aurobindo Pharma USA Inc, will enable the company to expand its manufacturing footprint in the US, Aurobindo Pharma said in a regulatory filing.
The Hyderabad-based company said the transaction aligns with its strategic objective to expand its US manufacturing footprint. Lannett has a 4.24 lakh sq ft cGMP (current good manufacturing practices) facility at Seymour in Indiana with a capacity to make around 3.6 billion tablets per annum.
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The plant has the capability to manufacture not just tablets but multiple dosage forms, including capsules, liquids, and powders. Aurobindo said Lannett's US-based facility has significant excess capacity and offers potential for further expansion.
Lannett's plant has a strong regulatory and DEA (Drug Enforcement Administration) compliance track record and has built strong expertise in non-opioid controlled substances, mainly in ADHD (attention-deficit, hyperactivity disorder) therapeutics, as well as generic liquids.
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Apart from giving a manufacturing facility in the US, the deal will also give Aurobindo access to a complementary portfolio of profitable products as well as a growing contract development and manufacturing organisation business, it added.
"The acquired product portfolio is primarily focused on non-opioid controlled substances, particularly in ADHD therapeutics in which Aurobindo currently has a limited presence.
This acquisition strengthens Aurobindo's ability to serve the US generics space and provides strategic diversification into a specialised high-value therapeutic category," Aurobindo Pharma said.
The transaction is expected to be completed in 8-12 months and is subject to US Federal Trade Commission approval in addition to other statutory and govt approvals.
Though Aurobindo is acquiring Lannett Company Inc, the company will undergo a re-organisation to become Lannett Company LLC before Aurobindo acquires it.
Lannett Company clocked a turnover of $306 million (approx. Rs 2674 crore) in the financial year 2024-25.
The Lannett acquisition is Aurobindo Pharma's largest buy after its plan to acquire Sandoz's US dermatology and generic oral solids businesses for $1 billion in 2018 fizzled out because they could not secure approval from the US FTC in a timely manner.
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