The U.S. Federal Trade Commission (FTC) has approved Aurobindo Pharma’s proposed acquisition of Pennsylvania-based generic pharmaceutical firm Lannett Company.

Valued at $250 million on a cash-free, debt-free basis and inclusive of normalised working capital, the transaction is expected to close before June 2026, Aurobindo Pharma said, announcing on Monday (June 22, 2026) that its subsidiary, Aurobindo Pharma USA received the FTC approval.

Lannett specialises in the development and commercialisation of a diversified portfolio of complex, non-opioid controlled substances. Its manufacturing site in Seymour, Indiana, has the capacity to scale production to approximately 4 billion doses annually. The enhanced capacity aligns with U.S. policy priorities to improve supply chain resilience and increase domestic pharmaceutical production, Aurobindo said.

The acquisition will significantly expand Aurobindo USA’s product offering while adding a U.S.-based manufacturing facility to its network. It will strengthen Aurobindo USA’s domestic manufacturing footprint, the company said.

“This acquisition represents a highly compelling strategic and financial opportunity. It accelerates our revenue growth, strengthens 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,” Aurobindo Pharma USA CEO Swami S. Iyer said.

Lannett Company’s CEO, Tim Crew, said Aurobindo’s market reach and resources will help Lannett, one of the oldest generic pharmaceutical companies in the U.S., make its portfolio of medicines even more affordable and accessible for patients everywhere.

FTC asks Aurobindo to divest four products to Quagen

Separately, the Federal Trade Commission said under the terms of its proposed consent order Aurobindo is required to divest four generic pharmaceutical products to Quagen Pharmaceuticals, an experienced generic drugmaker.

It is to protect American patients from higher drug costs, the Commission said on June 18. Aurobindo’s acquisition of Lannett would otherwise combine two of a limited number of competitors in the markets for four different generic pharmaceutical products that provide critical relief for patients, ranging from drugs used to prevent organ transplant rejection to tablets that treat dry mouth after radiation therapy.

The FTC order follows a complaint alleging that without the divestitures, the acquisition would increase the likelihood of Aurobindo unilaterally exercising market power in these four drug markets, while the remaining competitors could engage in coordinated interaction, potentially raising the cost of generic drugs.