Aurobindo Acquires Lannett for $250 million (~5.5x EBITDA)
- Will Hamilton
- Aug 5, 2025
- 2 min read
Updated: Feb 10
In July 2025, Aurobindo Pharma USA Inc., the wholly owned U.S. subsidiary of Indian generics manufacturer Aurobindo Pharma Ltd., entered into a definitive agreement to acquire Lannett Co., Inc., a U.S. based producer of complex generic pharmaceuticals, for an enterprise value of approximately $250 million on a cash‑free, debt‑free basis. The transaction, which is expected to close within 8–12 months pending regulatory approvals, will provide Aurobindo with full ownership of Lannett and its 425,000‑square‑foot cGMP manufacturing facility in Seymour, Indiana, which has an annual production capacity of about 3.6 billion dosage units. Lannett’s product portfolio emphasizes controlled substances and non‑opioid therapeutics, including treatments for attention‑deficit/hyperactivity disorder (ADHD) and a range of generic liquids and tablets.
The acquisition aligns with Aurobindo’s strategic objective of expanding its U.S. manufacturing footprint, diversifying into higher‑value therapeutic segments, and enhancing its presence in the competitive generics landscape. By integrating Lannett’s production capabilities and complementary product mix, Aurobindo gains access to a growing CDMO (Contract Development & Manufacturing Organization) business and significant domestic capacity that can support future growth initiatives. The move also reflects broader industry trends toward reshoring pharmaceutical manufacturing and reducing reliance on offshore supply chains amid intensifying regulatory and tariff pressures in the U.S. market.
Pharmaceutical Services EBITDA Multiples
According to an Aurobindo investor presentation, LTM revenue was $306 million with expected EBITDA margins without synergies of approximately 15%, implying multiples of 0.8x revenue and 5.5x EBITDA. The multiples are on the very low end of the range for pharmaceutical service providers, likely highlighting the regulatory risk and/or lack of margin durability.
Pharmaceutical Services M&A Deal Volume
The number of announced pharmaceutical services deals declined in 2025, breaking a several year upward trend, declining to 39 per quarter compared to 46 in 2024. Declines were relatively unform across the major sub-segments, with CRO posting the smallest decline, reversing the trend from 2024. The much smaller logistics sub-segment actually posted strong year-over-year growth, establishing itself as a legitimate fourth category within the group.
Other Pharmaceutical Services Deals
Read Scope Research's take on other pharmaceutical services M&A transactions:
About Scope Research
The Scope Research Healthcare M&A Valuation Database currently has financial details related to 158 pharmaceutical services deals, segmented by type, including 129 deals with disclosed EBITDA multiples. The data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
Don't hesitate to reach out to Will Hamilton at will@scoperesearch.co with questions about your specific situation.
