Dr. Reddy’s Laboratories is acquiring British consumer healthcare company Haleon’s global portfolio of consumer healthcare brands in the nicotine replacement therapy (NRT) category outside of the U.S. that generated about GBP 217 million in revenue in calendar year 2023.
On Wednesday, the drugmaker announced the signing of a definitive agreement by subsidiary Dr. Reddy’s Laboratories SA for purchase of Haleon group company Northstar Switzerland SARL’s shares for GBP 500 million, which will pave the way for the acquisition of the portfolio. The total consideration will consist of an upfront cash payment of GBP 458 million and performance-based contingent payments of up to GBP 42 million, payable in 2025 and 2026. The transaction is expected to close in early Q4 of calendar year 2024. Closing of the transaction will be subject to completion of customary conditions, including regulatory approvals, it said.
The portfolio consists of Nicotinell, a global leader in the NRT category with an footprint in over 30 countries spanning Europe, Asia, including Japan, and Latin America and local market-leading brand names of the product – Nicabate in Australia, Thrive in Canada, and Habitrol in New Zealand and Canada. The proposed acquisition will be inclusive of all formats such as lozenge, patch, gum as well as pipeline products, in all applicable global markets outside of the United States.
Dr. Reddy’s said the acquisition is poised to be an ideal anchor to continue to build global consumer healthcare OTC business. Dr. Reddy’s will acquire the NRT business in all countries outside of the U.S., upon closing of the transaction, while the operations will transition to the company in a phased approach to ensure successful integration of the business.
“We see the acquisition of this global portfolio of consumer healthcare products led by the global brand Nicotinell as a logical extension of our efforts in consumer healthcare OTC in recent years. The business to be acquired from Haleon has maintained steady sales and strong profitability over the years,” Dr. Reddy’s CEO Erez Israeli said.
