Indian Pharmaceutical Group Nears Deal to Acquire Anti-Smoking Brand Nicotinell from FTSE-100 Parent Company
Hyderabad-based Dr Reddy’s Laboratories is in the final stages of acquiring Nicotinell, a popular anti-smoking aid, from its parent company Haleon. According to sources, the deal could be announced as early as this week.
The details of the acquisition, including the exact amount that Dr Reddy’s will pay for the brand and other lesser-known European products owned by Haleon, are yet to be disclosed. However, it is expected to be in the hundreds of millions of pounds.
If the deal goes through, it will be the latest in a series of acquisitions for Dr Reddy’s, a company listed in both India and the US with a market value of approximately $11.7bn. The pharmaceutical giant was established in 1984 and has had a presence in the UK since 2002, with commercial offices and a research and development centre in Cambridge. It also operates a manufacturing site for active pharmaceutical ingredients in Mirfield, West Yorkshire.
Negotiations between Dr Reddy’s and Haleon for the acquisition of Nicotinell have been ongoing for several months. Haleon, which was spun out of FTSE-100 drug maker GlaxoSmithKline, is chaired by former Tesco chief executive Sir Dave Lewis and has a market capitalisation of close to £29.5bn. Earlier this month, GSK sold its remaining stake in Haleon.
Haleon is the owner of several well-known over-the-counter healthcare brands in the UK, including Centrum, Panadol, and Sensodyne. Nicotinell, available in patch, gum, and lozenge form, is considered the second-largest nicotine replacement therapy product globally.
The potential sale of Nicotinell comes just days after Rishi Sunak’s administration failed to pass an anti-smoking bill, following a surprise summer general election. Haleon declined to comment on the impending deal.
