Shares of Aurobindo Pharma Limited touched a day high of Rs 1,474.90 on the NSE on 19 June, rising after the company said the US Federal Trade Commission cleared its proposed acquisition of Lannett Company LLC. The stock gained as much as 2.2% from its previous close before settling into positive territory.

This is a deal that has been in the works for nearly a year. Aurobindo first announced the Lannett acquisition in July 2025 for $250 million. The idea was straightforward, buy a US-based generics company to grow its footprint in one of its biggest markets. 

Friday’s FTC clearance removes the last major regulatory hurdle, though it comes with specific conditions attached.

To preserve market competition, the US regulator has ordered Aurobindo to divest four generic drug products to New Jersey-based Quagen Pharmaceuticals LLC before the deal can officially close. 

These products cover treatments ranging from high cholesterol to organ transplant rejection. The transaction itself involves Aurobindo Pharma USA Inc., a wholly owned arm of the parent company, buying 100% of Lannett Company LLC from Lannett Seller Holdco Inc. 

With the conditional FTC nod now secured, Aurobindo said it expects to wrap up the remaining formalities and complete the deal before the end of June.

Its facility in Indiana can produce around 3.6 billion tablets a year. For Aurobindo, that is a meaningful addition to its US manufacturing capacity and broadens its generics portfolio in the country.

The clearance also comes at a useful time. Just last week, Aurobindo’s stock came under pressure after the USFDA flagged compliance concerns at Eugia Pharma Specialities’ Unit III facility in Telangana. 

That facility was classified as ‘Official Action Indicated’ on 12 June. Friday’s news gives investors something positive to focus on.

At 11:24 am on 19 June, AUROPHARMA was trading at Rs 1,466.90 on the NSE, up 1.61% from its previous close of Rs 1,443.70. The stock has gained 22.97% year to date and 35.52% over the past year.

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