Dr.Reddy’s to acquire nicotine replacement brands from UK-based Haleon for $632-M

Publicly listed Dr. Reddy's Labs, via its foreign subsidiary Dr. Reddy's Laboratories SA, has acquired UK-based Haleon’s global portfolio of consumer healthcare brands in the Nicotine Replacement Therapy (NRT) category outside of USA. It will acquire the share capital of Northstar Switzerland SARL for a total consideration of GBP 500 million (around USD 632 million) with 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 portfolio to be acquired consists of Nicotinell, which has a footprint in over 30 countries spanning Europe, Asia (including Japan) and Latin America, as well as local market brand names of the product including Nicabate in Australia, Thrive in Canada, and Habitrol in New Zealand and Canada. The acquisition will be inclusive of all formats such as lozenge, patch, gum as well as pipeline products, in all applicable global markets outside the USA. In CY’23, the portfolio being acquired had generated approximately GBP 217 million in revenue.