Haleon Announces Sale of Nicotine Replacement Therapy Business Outside US to Dr Reddy’s Laboratories
UK-based consumer healthcare company Haleon has entered into an agreement to sell its nicotine replacement therapy (NRT) business outside of the US to Dr Reddy’s Laboratories SA for £500 million (approximately $632.55 million). This strategic move includes popular brands like Nicotinell, Nicabate, Habitrol, and Thrive, available in gum, lozenge, and patch forms across more than 30 markets.
Brian McNamara, CEO of Haleon, expressed, “The divestment of Haleon’s NRT business outside of the US is a further example of Haleon being proactive in managing its portfolio and is consistent with our strategy as we implement change to become more agile and competitive.”
This divestment enables Haleon to exit the NRT category outside of the US, reducing complexity and allowing increased focus on strategic growth areas. The NRT business contributed net revenue of £217 million (approximately $274 million) for the financial year ended December 31, 2023.
The transaction, expected to close in early Q4 2024, signifies Haleon’s commitment to streamlining operations and enhancing competitiveness. It aligns with the company’s strategy to optimize its portfolio and concentrate on areas poised for strategic expansion.
As Haleon prepares to transition, Dr Reddy’s Laboratories anticipates leveraging the acquisition to bolster its presence in the global consumer healthcare market. This acquisition marks a significant step for both companies in their respective strategic growth trajectories.
