The Company has entered into a definitive agreement with British Consumer Healthcare player Haleon plc and its associate companies (Haleon) to acquire their consumer healthcare brands in the Nicotine Replacement Therapy (NRT) category, outside the United States.
- The acquisition has been done through Dr. Reddy’s Laboratories SA, Switzerland, a wholly owned subsidiary of the Company.
- Portfolio to be acquired consists of global NRT brand Nicotinell and its local market-leading brand names Nicabate, Habitrol and Thrive in markets outside of the United States.
- Nicotinell is the second biggest brand globally (excluding the United States) in the NRT category. It holds the first or second position in 14 of the top 17 global markets, with the lozenge/mini lozenge format holding top position globally.
- Consideration includes upfront cash payment of of GBP 458 mn and additional performance-based contingent cash payments of up to GBP 42 mn in CY 2025 and CY 2026.
- The product portfolio being acquired has revenues of approx. GBP 217 million, GBP 200 million and GBP 201 million in CY 2023, CY 2022 and CY 2021, respectively.
- Company expects acquisition to be margin attractive at the consolidated level.
- The transaction is expected to close in early Q4 of calendar year 2024.
Acquisition is in line with Reddy’s stated growth strategy. Apart from growing its core generics business, the Company has been investing in the areas of access to novel molecules, consumer healthcare and digital therapeutics as additional levers for business growth.
The acquisition will enable the Company to gain access to a global OTC anchor brand and is seen as a potential vehicle to build the Company’s global consumer healthcare OTC business.