• Lannett acquisition rationale: Aurobindo is acquiring Lannett for $250 million—which includes over $100 million in working capital—to strengthen its non-opioid controlled substance portfolio, add CDMO capacity, and enter the inhalation segment. To satisfy FTC clearance conditions, the company agreed to divest four products representing low-to-mid single-digit revenue.
• Revenue growth guidance: Management expects Lannett to contribute over $220 million across nine months, putting Aurobindo on track to hit its $2 billion revenue target (plus or minus 5%) alongside 10% constant-currency growth in Europe.
• US manufacturing footprint: Management stated the company is insulated from potential US tariffs by leveraging Lannett’s 4 billion unit capacity alongside facilities in Dayton, New Jersey, and a reserve plant in Puerto Rico, reaching an overall capacity of 66 billion tablets by March 2026.
• Funding and liquidity: The acquisition is funded entirely via existing cash reserves exceeding $300 million without adding debt. Aurobindo projects annual cash generation of $300 million to $350 million and over $1 billion over the next 3 to 4 years, eliminating the need to raise external capital.