“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,” said Brian McNamara, Haleon’s chief executive.
Haleon To Sell Nicotine Replacement Biz : Future Plans
Haleon intends to use the proceeds from the sale to bolster its capital holding. The nicotine replacement business reported net revenue of £217 million in 2023.
Regulatory Approvals and Closing Timeline
The deal, pending regulatory approvals, is expected to close by October 2024. However, the companies did not specify which authorities will be involved in the approval process.
Background
In a related move, U.K. pharmaceutical giant GSK sold its remaining 4.2% stake in its spun-off consumer healthcare unit Haleon for £1.25 billion in May.
Haleon To Sell Nicotine Replacement Biz : Conclusion
Haleon’s decision to sell its nicotine replacement business highlights its strategy to focus on core areas, ensuring streamlined operations and enhanced capital strength. The partnership with Dr. Reddy’s Laboratories is set to drive growth for the nicotine replacement brands, leveraging Dr. Reddy’s expertise and focus.
