Dr Reddy's Laboratories added 2.27% to Rs 6,205.95 after the firm's wholly owned subsidiary, Dr. Reddy's Laboratories SA has entered into a definitive agreement with Haleon plc and its associate companies to acquire Nicotinell and related brands.
Dr. Reddys Laboratories SA will acquire all of the quotas of Northstar Switzerland SARL (Northstar Switzerland), a Haleon group company. It will also aquire Haleons global portfolio of consumer healthcare brands in the Nicotine Replacement Therapy (NRT) category outside of the United States.The intellectual property, business contracts, dossiers and other assets related to the portfolio being acquired will reside in Northstar Switzerland and/or its fully owned step-down subsidiaries North Star OpCo and North Star Sweden AB to be incorporated in England and Wales and Sweden, respectively.
The acquisition will enable the company to gain access to a global OTC anchor brand and is seen as a potential vehicle to build the companys global consumer healthcare OTC business.
Dr. Reddys Laboratories SA will pay total consideration of GBP 500 million with an upfront cash consideration of GBP 458 million and additional performance-based contingent cash payments of up to GBP 42 million in CY 2025 and CY 2026.
The said transaction is expected to close by early Q4 of calendar year 2024.
Dr Reddy's Labs is engaged in providing medicines. The firm operates in three segments: global generics, pharmaceutical services and active ingredients (PSAI) and proprietary products.
The drug maker reported 36.25% increase in net profit to Rs 1,307 crore on 12.48% rise in revenue from operations to Rs 7,083 crore in Q4 FY24 over Q4 FY23.
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