Indian pharmaceutical giant Dr. Reddy’s Laboratories is set to acquire the nicotine replacement therapy (NRT) business of British consumer healthcare firm Haleon, excluding the US market, for £500 million (approximately ₹5,276 crore). This acquisition involves an upfront cash payment of £458 million and performance-based contingent payments up to £42 million, slated for 2025 and 2026, pending regulatory approvals and customary closing conditions.
The deal includes Nicotinell, a global leader in the NRT category, along with its local market-leading brands such as Nicabate, Habitrol, and Thrive. These brands have a strong presence in over 30 countries across Europe, Asia (including Japan), and Latin America. In 2023, the Nicotinell portfolio generated around £217 million in revenue.
Dr. Reddy’s Laboratories SA, a subsidiary of Dr. Reddy’s Laboratories, facilitated the acquisition. Dr. Reddy’s CEO Erez Israeli highlighted the strategic importance of the deal, stating, “The business to be acquired from Haleon has maintained steady sales and strong profitability over the years. The portfolio is attractive for its customer loyalty, its global nature, and the access it provides to key customers. We believe we can unlock more value, grow the portfolio further, and increase consumer access around the world to these global brands.”
Nicotinell, ranked among the top 15 OTC brands in Europe, offers various formats such as lozenges, patches, and gums to aid in tobacco cessation. This acquisition aims to diversify and strengthen Dr. Reddy’s consumer healthcare OTC business, which has seen recent expansions in pain relief, women’s health, and nutritional products. Dr. Reddy’s has also entered the UK consumer health market earlier this year with the launch of Histallay.
Source: Business Standard
