Dr. Reddy's to acquire Haleon’s global portfolio of consumer healthcare brands

On Wednesday, Dr. Reddy's Laboratories Ltd. announced that it is acquiring Haleon’s global portfolio of consumer healthcare brands in the Nicotine Replacement Therapy (NRT) category outside of the United States.

As per the company's announcement, a definitive agreement has been reached between its subsidiary, Dr. Reddy’s Laboratories SA and Haleon plc for the acquisition of shares in Northstar Switzerland SARL.

The portfolio to be acquired consists of Nicotinell- a significant product in the NRT sector present in more than 30 countries across Europe, Asia (including Japan) and Latin America. 

The company stated that the acquisition will be inclusive of all formats such as lozenge, patch, gum as well as pipeline products; in all applicable global markets other than the United States.

Dr. Reddy’s is set to purchase Northstar Switzerland SARL's share capital for a total of GBP 500 million, comprising of an initial GBP 458 million cash payment and additional performance-based contingent payments of up to GBP 42 million in 2025 and 2026.

Nicotinell is the world's second largest brand in the NRT category excluding the United States. It ranks either first or second in 14 out of the top 17 worldwide markets, with the lozenge/mini lozenge format leading globally.

The deal is expected to be finalized in the beginning of Q4 in the year 2024 on the calendar. After the transaction is finalized, Dr. Reddy's will take over the NRT business globally except in the United States.

 However, the transition of operations to Dr. Reddy's will occur gradually to ensure the successful integration of the business.