Aurobindo Pharma Stock Surges Over 1.5% on FTC Clearance of Lannett Acquisition

Aurobindo Pharma Stock Surges Over 1.5% on FTC Clearance of Lannett Acquisition​

Aurobindo Pharma shares saw a significant jump in early trading on Friday, rising over 1.5% after the company announced crucial regulatory approval for a major acquisition. The stock climbed as high as 1.53%, settling at ₹1,465.80 on the NSE following the news.

The gain was fueled by confirmation that the US Federal Trade Commission (FTC) has cleared the transaction involving Aurobindo Pharma USA Inc., a wholly owned subsidiary of the company. This approval concerns the purchase of Lannett Company LLC from LANNETT SELLER HOLDCO, INC.

Securing Regulatory Approval for Strategic M&A​

The clearance provides a powerful strategic lift to Aurobindo Pharma. The acquisition is expected to be completed before the end of June. This deal involves acquiring 100% membership interest in Lannett Company LLC.

FTC approval solidifies the move, which was initially announced by the company back in July 2025. According to Reuters, the FTC noted that Aurobindo’s acquisition would combine two competitors within the specialized markets of four generic pharmaceutical products. These products include medications for preventing organ transplant rejection and tablets designed to treat dry mouth following radiation therapy.

Context Amid Prior Regulatory Scrutiny​

The stock's positive rally is particularly notable given recent operational challenges faced by the company in the US market. This turnaround comes days after Aurobindo Pharma shares experienced a sharp decline due to regulatory concerns regarding one of its manufacturing units.

On June 15, the stock fell sharply after the US Food and Drug Administration (USFDA) classified Eugia Pharma Specialities' Unit III facility as "Official Action Indicated" (OAI). This classification followed an inspection conducted between January 27 and February 6, 2026.

Understanding the OAI Classification Impact​

The facility in question is operated by Eugia Pharma Specialities, a wholly owned subsidiary of Aurobindo Pharma. The USFDA identified 11 observations during the inspection, and the company was informed of the OAI status on June 12.

An OAI classification signifies that the USFDA has identified substantial compliance concerns. While the facility remains capable of manufacturing and supplying approved products, it cannot receive approvals for new drug applications until the noted observations are satisfactorily addressed.