Indian drugmaker Aurobindo will need to divest four drugs from its proposed $250 million deal to resolve anticompetitive concerns in order to complete its acquisition of Pennsylvania generic drug specialist Lanette, the Federal Trade Commission said.
“Aurobindo’s acquisition of Lanet would consolidate two of a limited number of competitors in the market for four different generic drugs that provide important relief to patients,” the FTC wrote (PDF) about the proposed consent order.
U.S. regulators specified that Aurobindo must sell the product to New Jersey generic drug maker Quagen Pharmaceuticals.
“Today’s FTC action will protect millions of patients from the threat of generic drug price gouging,” Daniel Guarnera, director of the FTC’s Bureau of Competition, said in a release.
Aurobindo did not immediately respond to a request for comment.
The product Aurobindo will have to part with is mycophenolate mofetil, an immunosuppressant that helps prevent rejection of organ transplants. Pilocarpine. Treat dry mouth in patients receiving radiation therapy for Sjogren’s syndrome. Rabeprazole, a proton pump inhibitor that reduces stomach acid. Niacin extended-release tablets manage cholesterol levels and B vitamin deficiencies.
The FTC explained that Aurobindo and Lanet are among a small group of manufacturers competing for sales of each of these drugs.
“Absent a sale, this transaction increases the likelihood that Aurobindo will be able to unilaterally exercise market power in these four drug markets, while potentially leading the remaining competitors to engage in coordinated interactions that could increase generic drug prices,” the FTC said in a June 18 release. “Ultimately, customers will have to pay higher rates.”
The public will have 30 days to submit comments on the proposed package, the regulator said.
The FTC added that it will file administrative complaints when there is “reason to believe” that a law has been or is being violated and the commission believes the process is in the public interest.
The companies announced the merger in August 2025, and Aurobindo said in a regulatory filing that it would be entering the attention-deficit hyperactivity disorder (ADHD) drug market.
The deal also gives Aurobindo a large manufacturing facility in Seymour, Indiana, which is “consistent with reshoring efforts and government procurement priorities,” the company said in a filing.
