FTC Consent Order on Aurobindo–Lannett Acquisition
The U.S. Federal Trade Commission issued a proposed consent order that conditions Aurobindo Pharma Limited’s $250 million purchase of Lannett Company Inc. on the divestiture of four generic drug products. Under the order, Aurobindo must sell the products to Quagen Pharmaceuticals LLC, a generic‑drug manufacturer. The four products are mycophenolate mofetil oral suspension (an immunosuppressant for organ‑transplant rejection), niacin extended‑release tablets (cholesterol management), pilocarpine tablets (treatment of radiation‑induced dry mouth), and rabeprazole sodium delayed‑release tablets (a proton‑pump inhibitor).
The FTC stated that the acquisition would otherwise reduce competition in the markets for these drugs, which are produced by a limited number of competitors. The consent order also requires Aurobindo and Lannett to provide transition services so that Quagen can operate the divested assets immediately, and a monitor will be appointed to oversee compliance with the divestiture obligations.
The FTC’s Bureau of Competition Director, Daniel Guarnera, emphasized the agency’s commitment to keeping generic drug prices low for American patients. The Commission voted 2‑0 to issue the complaint and accept the consent agreement for public comment. The public comment period is 30 days from the filing date.