Aurobindo Pharma: US Specialty Deal Clears Statutory Approval, Not The Rerating Bar

研报英文原文证据摘录

Aurobindo Pharma: US Specialty Deal Clears Statutory Approval, Not The Rerating Bar

24 June 2026

Nandan Kulkarni

+91 22 6842 1436

India Healthcare nandan.kulkarni@bernsteinsg.com

Aurobindo Pharma Ltd Shirsh Sawarna

+91 226 842 1492

Rating shirsh.sawarna@bernsteinsg.com

Market-Perform

Price Target

ARBP.IN 1,498.00 INR

Aurobindo Pharma: US Specialty Deal Clears Statutory Approval,

Not The Rerating Bar

At the start of this week Aurobindo Pharma has disclosed that it has received FTC Close Date 23 Jun 2026

approval to proceed with its US$250mn acquisition of Lannett Company LLC, removing

ARBP.IN Close Price (INR) 1,534.20

the key closing overhang for the transaction announced in July 2025. The deal is structured

Price Target (INR) 1,498.00

as a 100% acquisition on a cash-free, debt-free basis, including normalized working capital,

Upside/(Downside) (2)%

with closing expected before the end of June 2026. The FTC remedy is narrow: Aurobindo

52-Week Range 1,550.00/1,016.10

is required to divest four overlapping generic products to Quagen Pharmaceuticals. We

ASIAX 1,996.41

do not see these divestitures as impairing the strategic core of Lannett- ADHD, non-opioid

FYE Mar

controlled substances, nor the value unlock through US manufacturing in oral liquids and

Div Yield 0.3%

complex-generics portfolio.

Market Cap (INR) (M) 891,066

Strategically, Lannett gives Aurobindo access to a US controlled-substance platform with EV (INR) (M) 865,537

~$306Mn in sales in CY25 and unlocks ‘Seymour, Indiana’- a US based manufacturing site Performance YTD 1M 6M 12M

with approximately 4Bn annual dose capacity. The acquisition price implies 0.82x latest Absolute (%) 29.7 4.8 26.0 39.5

disclosed sales, which we view as a reasonable entry multiple for a US-based generic ASIAX (%) 22.1 2.9 23.1 40.7