Dr. Reddy’s Laboratories to Acquire Haleon Plc’s Nicotine Replacement Therapy Business
Dr. Reddy’s Laboratories, a leading pharma company based in Hyderabad, has made a significant move by acquiring the entire nicotine replacement therapy (NRT) business of British consumer healthcare player, Haleon Plc. The deal, valued at GBP 500 million, excludes the United States market.
Through its subsidiary, Dr. Reddy’s Laboratories SA, the company will hold a 100% stake in Haleon group’s newly formed entity, Northstar Switzerland SARL. This strategic acquisition includes the popular NRT brand, Nicotinell, which holds a strong presence in 31 countries across Europe, Latin America, and Asia. Nicotinell, known as Nicabate in Australia, Thrive in Canada, and Habitrol in New Zealand and Canada, is considered the second-largest brand in the global NRT segment.
The deal comprises an upfront payment of GBP 458 million along with potential contingent payments of up to GBP 42 million in 2025 and 2026 based on performance. This acquisition is expected to be finalized in the fourth quarter of 2024, pending customary regulatory approvals.
Dr. Reddy’s sees this acquisition as a stepping stone to bolster its OTC (over-the-counter) business globally. By incorporating Nicotinell into its portfolio, the company aims to enhance its footprint in the consumer healthcare sector and establish a strong presence in the NRT market worldwide.
The acquired NRT portfolio generated approximately 217 million pounds in revenue in 2023. Dr. Reddy’s has been actively expanding its consumer healthcare offerings through acquisitions, including brands like Habitrol in the NRT space, Doan’s for pain relief, Premama for fertility and parenthood, and MenoLabs for menopause.
Commenting on the acquisition, Dr. Reddy’s stated, “The proposed acquisition will encompass all NRT product formats such as lozenges, patches, and gums, as well as upcoming pipeline products in global markets outside the US.” The company’s subsidiaries, Northstar Switzerland and its fully owned entities, will house the intellectual property and assets related to the acquired portfolio.
This milestone deal signifies Dr. Reddy’s commitment to diversifying its product offerings and expanding its global presence in the consumer healthcare segment. With Nicotinell as a key asset, the company is poised to tap into new markets and strengthen its position as a leading player in the OTC space.
