Earnings boost for Dr Reddy's Lab post consumer healthcare acquisition

In India, DRL has an OTC portfolio in the hydration, cough-cold-allergy, and skin care categories

Dr Reddy’s Laboratories (DRL) has agreed to acquire Haleon’s global portfolio of consumer healthcare brands in the Nicotine Replacement Therapy (NRT) category outside of the US.

DRL will pay a total consideration of £500 million, including an upfront cash consideration of £458 million and contingent cash payments up to £42 million based on performances in CY25 and CY26.

DRL will acquire the portfolio through the purchase of shares of Northstar Switzerland SARL, a Haleon group firm.

The purchase will be funded through internal accruals. The portfolio had net revenue of £217 million in CY23, the operating profit