Aurobindo Pharma USA Inc. (APUSA) has successfully completed its acquisition of Lannett Company, Inc. from Lannett Seller Holdco, Inc., following receipt of approval from the U.S. Federal Trade Commission on June 18, 2026. According to Business Standard, Lannett became a wholly owned subsidiary of APUSA effective June 29, 2026, and will operate as Lannett Company LLC. The integration process has commenced immediately with a strong emphasis on ensuring uninterrupted access to critical medications, maintaining trusted relationships with partners, and supporting employees throughout the transition.
Aurobindo Pharma stock hit a 52-week high at ₹1,585, and quoted close to its record high of ₹1,592 hit in September 2024. According to reports from Business Standard, the pharmaceutical company has demonstrated strong momentum with a 30% gain over the past 4 months, reflecting robust investor confidence in the company's growth prospects. The completion of the Lannett acquisition adds significant strategic value to this performance trajectory.
According to HDFC Securities analysis reported by Business Standard, Aurobindo sees multiple synergy levers including US base manufacturing to expand presence in the US market, diversified product portfolio and access to government business through local manufacturing. The brokerage highlighted that scale-up in production volume with optimization of procurement and manufacturing efficiencies will improve profitability, while overhead and administrative cost reduction will support margins. The Lannett acquisition significantly enhances these growth catalysts through expanded product portfolio and enhanced US market presence.
The report from HDFC Securities as reported by Business Standard emphasized that Lannett has multiple products in late-stage development, targeting complex and high-value therapeutic areas. The brokerage has assumed Lannett sales at $306 million in FY27, factoring in a $5-6 million impact from divestment of four products with EBITDA margin at ~15 per cent. With the acquisition now complete, these projections become operational reality for the combined entity. The acquisition adds nearly $300 million to annual revenue and was completed at an enterprise value of around $250 million, representing attractive valuations below 1x sales and roughly 5.5 times EBITDA.
Aurobindo's shares have gained 30% so far in 2026, with investors hoping the company is entering a monetization phase after years of strategic investments. According to Nuvama Research's 22 June report, over the past five years, Aurobindo has invested ₹11,800 crore in its business while undertaking a total capex of about ₹15,500 crore across businesses including Pen-G, injectables, biosimilars, biologics manufacturing and the Lannett acquisition. HDFC Securities estimates Aurobindo to clock consolidated net sales of ₹45,000 crore (₹33,700 crore in FY26) and an EBITDA margin of 21% by FY28, with growth aided by Pen-G project ramp-up, Lannett's integration, new US product launches, expansion in Europe and contribution from higher-margin businesses. The stock currently trades at 17 times its FY28 estimated earnings as per Bloomberg.
