Dr. Reddy’s will pay an upfront cash consideration of $580 million (GBP 458 million) and additional performance-based contingent cash payments of up to $52 million (GBP 42 million) in 2025 and 2026.
The transaction is expected to close by early Q4 of calendar year 2024.
The portfolio to be acquired consists of Nicotinell, a global leader in the NRT category with an extensive footprint in over 30 countries spanning Europe, Asia including Japan, and Latin America, and local market-leading brand names of the product – Nicabate in Australia, Thrive in Canada, and Habitrol in New Zealand and Canada.
The proposed acquisition will be inclusive of all formats such as lozenge, patch, gum as well as pipeline products, in all applicable global markets outside of the US.
The total revenue of the portfolio being acquired had net revenues of around $275 million (GBP 217 million) in 2023.Top 12 countries are the UK, France, Sweden, Denmark, Finland, Norway, Australia, New Zealand, Canada, Japan, Germany and the Netherlands, which amounted to 80% of revenues in 2023.”The acquisition will enable the Company to gain access to a global over-the-counter (OTC) anchor brand and is seen as a potential vehicle to build the Company’s global consumer healthcare OTC business,” the company said.
Nicotinell is the second biggest brand globally (excluding the US) 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.
Nicotinell ranks among the top 15 biggest brands among all OTC brands in Europe (excluding Russia, Italy), and ranks 32 among all OTC global brands (excluding the US).
“We see the acquisition of this global portfolio of consumer healthcare products led by the global brand Nicotinell as a logical extension of our efforts in consumer healthcare OTC in recent years,” said Erez Israeli, CEO of Dr. Reddy’s.
“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,” Israeli added.
