Dr Reddy's to acquire British consumer healthcare co Haleon's entire non-US nicotine therapy business

HYDERABAD: Pharma major Dr Reddy’s Laboratories is acquiring British

consumer healthcare

player

Haleon

Plc's entire

nicotine replacement therapy

(

NRT

) business, outside of the United States market, for a consideration of GBP 500 million.
As part of the deal, Dr Reddy's arm

Dr Reddy's Laboratories

SA will be acquiring 100% stake in newly incorporated Haleon group company

Northstar Switzerland

SARL and has inked a definitive agreement for the same, it said in a regulatory filing.
The portfolio being acquired by the Hyderabad-based company includes Nicotinell, touted as the second biggest brand in the NRT space globally with a footprint in 31 countries across Europe, Latin America and Asia, including countries like Japan.

Nicotinell

is also branded as Nicabate in Australia, Thrive in Canada and Habitrol in New Zealand and Canada.
The deal includes an upfront payment of GBP 458 million as well as performance-based contingent payments of up to GBP 42 million that will be payable in 2025 and 2026.

Dr Reddy’s said the deal, which is expected to close in the fourth quarter of 2024 and is subject to satisfactory completion of customary conditions, including regulatory approvals, will give it access to a global OTC anchor brand that would be a potential vehicle for the company to to build its global consumer healthcare OTC business..
“The proposed acquisition will be inclusive of all formats such as lozenge, patch, gum as well as pipeline products in all the applicable global markets outside of the US,” Dr Reddy’s said.
The total revenue of the portfolio being acquired clocked net revenues of around GBP 217 million in 2023 but the turnover of Northstar Switzerland is zero as the company was newly incorporated, it explained.
“The intellectual property, business contracts, dossiers and other assets related to the portfolio being acquired will reside in Northstar Switzerland and its fully owned step-down subsidiaries North Star OpCo Ltd and North Star Sweden AB, to be incorporated in England and Wales and Sweden, respectively,” it said.