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FTC Requires Drug Divestitures Before Aurobindo Can Complete $250 Million Lannett Acquisition

By  |  June 18, 2026
FTC Requires Drug Divestitures Before Aurobindo Can Complete $250 Million Lannett Acquisition

The US Federal Trade Commission (FTC) has ordered Aurobindo Pharma to divest four generic drug products as a condition for completing its planned $250 million acquisition of Lannett Company, concluding that the transaction could reduce competition in several pharmaceutical markets.

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    Under a proposed consent agreement announced June 18, Aurobindo must sell the products to Quagen Pharmaceuticals before the acquisition can move forward. The FTC said the deal would otherwise combine two of a limited number of competitors in markets for four generic medicines used to treat conditions including organ transplant rejection, high cholesterol, dry mouth associated with radiation therapy, and excessive stomach acid production.

    According to the FTC, the required divestitures include mycophenolate mofetil oral suspension, niacin extended-release tablets, pilocarpine tablets and rabeprazole sodium delayed-release tablets. The agency argued that preserving competition in these markets is necessary to prevent potential price increases and maintain access to lower-cost generic medicines.

    The action highlights continued antitrust scrutiny of consolidation in the generic pharmaceutical industry, where regulators have increasingly examined whether mergers could reduce the number of suppliers for essential medicines. The FTC alleged that combining Aurobindo and Lannett’s operations would decrease the number of significant independent competitors for each of the four products involved in the case.

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    As part of the proposed settlement, Aurobindo and Lannett will also be required to provide transition services to Quagen to ensure continuity of supply following the divestitures. An independent monitor will oversee compliance with the FTC’s requirements.

    The acquisition was first announced in 2025 and is valued at approximately $250 million. The transaction would expand Aurobindo’s U.S. manufacturing footprint and add Lannett’s portfolio of generic products and production capabilities to the company’s operations.

    Fierce Pharma previously reported that the acquisition would strengthen Aurobindo’s presence in the U.S. generics market and provide access to additional therapeutic categories, including treatments for attention-deficit/hyperactivity disorder.

    The FTC’s complaint and proposed consent order are subject to a public comment period before becoming final. If approved, the divestitures would clear the way for Aurobindo to complete its acquisition of Lannett while maintaining competition in the affected generic drug markets.

    Source: Fierce Pharma