Shares of Aurobindo Pharma gained more than 1.5 percent after the company announced that it had received clearance from the US Federal Trade Commission for its proposed acquisition of Lannett Company LLC. The regulatory approval marks a significant milestone in the completion of the transaction and removes one of the final hurdles before closing.

The company stated that it expects the acquisition to be completed before the end of June 2026, subject to the fulfillment of remaining customary closing conditions. Aurobindo Pharma had initially announced the proposed acquisition in July 2025 as part of its strategy to strengthen its presence in the United States pharmaceutical market.

Lannett Company LLC is engaged in the development, manufacturing, packaging, marketing, and distribution of generic pharmaceutical products in the United States. The acquisition is expected to enhance Aurobindo Pharma's product portfolio and expand its market reach in one of its key international markets.

Investors responded positively to the regulatory clearance, viewing the development as a step forward in Aurobindo Pharma's growth strategy. The transaction is expected to provide the company with additional manufacturing capabilities, product offerings, and distribution opportunities in the US healthcare market.

Aurobindo Pharma said it will continue to keep stock exchanges informed regarding any material developments related to the acquisition.