Dr. Reddy’s Laboratories has completed the acquisition of nicotine replacement therapy (NRT) brands of UK-based Haleon for £458m ($620m).
Under the deal, the Indian pharma major’s Swiss subsidiary Dr. Reddy’s Laboratories, Switzerland acquired Haleon’s global portfolio of consumer healthcare brands in the NRT category, outside the US.
As part of the acquisition, Northstar Switzerland and its wholly owned subsidiaries, North Star OpCo (United Kingdom) and North Star Sweden (Sweden), are now fully owned step-down subsidiaries of Dr. Reddy’s Laboratories.
The Nicotinell brand serves the NRT category and has a presence in over 30 countries, including Europe, Asia, and Latin America.
It is also present in Australia with the Nicabate brand, Thrive in Canada, and Habitrol in New Zealand and Canada.
The acquired portfolio includes a diverse range of formats such as lozenges, patches, and gums, as well as pipeline products, covering all applicable global markets outside the US.
The transaction, announced in June, will expand Dr. Reddy’s consumer healthcare portfolio, particularly in nutrition and over-the-counter (OTC) wellness.
The drugmaker aims to enhance its OTC presence through continuous investment and partnerships, including a recent joint venture with Nestlé India.
Dr. Reddy’s plans to use these brands to expand its global OTC business, better serve consumers, and contribute to improved health outcomes worldwide.
In a separate development, Sensodyne maker Haleon announced plans to boost its stake in its Chinese joint venture from 55% to 88%.
The British consumer healthcare company will invest CNY4.47bn ($637m) to acquire this additional stake from its partners, Tianjin Pharmaceutical Group (TPG) and Tianjin Pharmaceutical Da Ren Tang Group (DRTG).
The joint venture produces and distributes brands like the wound ointment Bactroban and pain relief products Fenbid and Voltaren.
Haleon, a spin-off of British drugmaker GSK, saw significant revenue from its joint venture in China. Last year, this venture contributed around 40% of Haleon’s total revenue.
Haleon CEO Brian McNamara said: “It reflects our commitment to this important market, the exceptional growth potential we see in China.”
Additionally, the healthcare company will have the option to purchase the remaining 12% of the joint venture from DRTG after the deal closes.
