Haleon divests nicotine replacement therapy business outside of the US
July 5, 2024
Haleon plc has announced that it has entered into an agreement to sell its nicotine replacement therapy (NRT) business outside of the US to Hyderabad, India based pharmaceutical firm Dr. Reddy’s Laboratories for £500 million.
The portfolio consists of brands including Nicotinell, Nicabate, Habitrol and Thrive available in gum, lozenge and patch forms across over 30 markets.
Haleon said the divestment will allow it to exit the NRT category outside of the US and will reduce complexity across the business allowing increased focus on strategic growth areas.
“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,” Brian McNamara, chief executive, commented.
“Whilst this business has great brands, these are not core for us, but I’m sure they will continue to flourish given the focus and capability of Dr Reddy’s.”
For the financial year ended 31 December 2023, Haleon’s net revenue attributable to the NRT business outside of the US was £217mn and the profit was £110m, excluding directly allocated and central costs.
The transaction is subject to customary regulatory approvals and completion is expected in early Q4 2024.
