 "Dr. Reddy's to acquire Haleon's nicotine replacement biz for 500 mn pounds")
Indian pharma major Dr. Reddy’s Laboratories is set to acquire the entire nicotine replacement therapy (NRT) business of British consumer healthcare firm Haleon outside the US market for 500 million pounds (Rs 5,276 crore).
Haleon, which spun off from GlaxoSmithKline Consumer, is known in India for its Sensodyne toothpaste.
As part of the deal, the acquisition includes an upfront cash payment of 458 million pounds and performance-based contingent payments of up to 42 million pounds, slated for 2025 and 2026, subject to regulatory approvals and customary closing conditions.
This deal was facilitated through Dr. Reddy's Laboratories SA, a subsidiary of Dr. Reddy’s Laboratories.
The acquisition includes Nicotinell, a global leader in the NRT category, and its local market-leading brand names Nicabate, Habitrol, and Thrive.
The Nicotinell portfolio spans over 30 countries across Europe, Asia (including Japan), and Latin America. In 2023 alone, the portfolio generated approximately 217 million pounds in revenue.
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Highlighting the strategic importance of the acquisition, Dr. Reddy’s CEO Erez Israeli said,
“The business to be acquired from Haleon has maintained steady sales and strong profitability over the years. The portfolio is attractive for its customer loyalty, its global nature, and the access it provides to key customers. We believe we can unlock more value, grow the portfolio further, and increase consumer access around the world to these global brands.”
Nicotinell, ranked among the top 15 OTC brands in Europe and a leader in its category, offers various formats such as lozenges, patches, and gums to aid in tobacco cessation. This move comes as Dr. Reddy’s aims to diversify and strengthen its consumer healthcare OTC business, which includes recent expansions in pain relief, women’s health, and nutritional products.
In recent years, Dr. Reddy’s has expanded its OTC portfolio through acquisitions and partnerships, including joint ventures with global brands like Nestle Health Science in India. The company entered into the UK consumer health market earlier this year with the launch of Histallay.