Before Indian drugmaker Aurobindo can complete its acquisition of Pennsylvania generics specialist Lannet, it will have to divest four drugs from the proposed $250 million buyout to resolve anticompetitive concerns, the Federal Trade Commission said.
“Aurobindo’s acquisition of Lannett would combine two of a limited number of competitors in the markets for four different generic pharmaceutical products that provide critical relief for patients,” the FTC wrote of its proposed consent order (PDF).
The U.S. regulator has specified that Aurobindo must sell the products to New Jersey generics maker Quagen Pharmaceuticals.
“The FTC’s action today will protect millions of patients from the threat of higher generic drug prices,” Daniel Guarnera, the director of the FTC’s Bureau of Competition, said in a release.
Aurobindo did not respond immediately to a request for comment.
The products Aurobindo will have to surrender are mycophenolate mofetil, an immunosuppressant which helps prevent organ transplant rejection; pilocarpine, which treats dry mouth in patients that undergo radiation therapy for Sjogren’s syndrome; rabeprazole, a proton pump inhibitor which reduces stomach acid; and niacin extended release tablets, which manage cholesterol levels and B-complex vitamin deficiency.
With each of these drugs, Aurobindo and Lannett are among a small group of manufacturers competing for sales, the FTC explained.
“Without the divestitures, the deal would increase the likelihood that Aurobindo would be able to unilaterally exercise market power in these four drug markets, while the remaining competitors could engage in coordinated interaction, potentially raising the cost of generic drugs,” the FTC wrote in a June 18 release. “Ultimately, customers would be forced to pay higher prices.”
The public will have 30 days to submit comments on the proposed package, the regulator said.
The FTC issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest, it added.
The companies revealed their merger in August 2025, with Aurobindo saying in a regulatory filing that it provided an entry into the attention-deficit/hyperactivity disorder (ADHD) medication market.
The deal also secures for Aurobindo a large manufacturing facility in Seymour, Indiana, which “aligns with reshoring initiatives and government procurement preferences,” the company explained in the filing.