Haleon PLC announced Wednesday its plan to sell its nicotine replacement business outside the U.S. to Indian pharmaceutical group Dr. Reddy’s Laboratories for up to £500 million ($632 million). This move aims to streamline Haleon’s operations.
Haleon To Sell Nicotine Replacement Biz : Details of the Sale
The British consumer healthcare leader confirmed an agreement to divest the nicotine replacement business, which includes brands Nicotinell, Nicabate, Habitrol, and Thrive, to Dr. Reddy’s Laboratories SA. Counsel information for the transaction was not immediately available.
Financial Terms
Haleon, owner of well-known brands like Sensodyne toothpaste and Panadol and Advil painkillers, stated that New York-listed Dr. Reddy’s will pay £458 million in cash upfront. The remaining £42 million will be payable by March 2026, contingent on the nicotine replacement business achieving certain performance targets.
Haleon To Sell Nicotine Replacement Biz : Strategic Shift
The healthcare company explained that selling the nicotine replacement business, which includes gum, lozenge, and patch products across more than 30 markets, will help “reduce complexity across the business.” This sale also enables Haleon to exit the market outside the U.S.
